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Should Telstra Corporation Ltd, Coca-Cola Amatil Ltd & Woolworths Limited be in your 2015 share portfolio?

At the beginning of 2014 how many economists were predicting our share market would be sitting 0.66% lower this far into the year?

My guess is: very few.

Indeed Australia’s biggest and best companies – included in the S&P/ASX 200 (INDEX: ^AXJO) (ASX: XJO) – have experienced anything but smooth sailing.

I doubt many investors would have predicted Coca-Cola Amatil Ltd (ASX: CCL), Australia’s exclusive distributor of one of the world’s most renowned beverage brands, would be down a whopping 25% in just 11 months.

I believe very few people predicted Woolworths Limited’s (ASX: WOW) share price would be down 8% so far in 2014.

Telstra Corporation Ltd (ASX: TLS) has however been one of the few standout performing blue-chip stocks throughout 2014, rising 8% not including dividends.

Buy, Hold, or Sell?

Despite falling some 15% in the past three months alone, Woolworths still trades at a premium to the broader market. However analysts expect the company to grow earnings per share at just 3.6% in the next year and at comparable rates for the foreseeable future. Given its growth outlook and its valuation (it’s currently trading at 16x earnings) it’s not a standout buy. However investors should keep it firmly on their watchlist in case prices continue to fall further.

On the other hand Coca-Cola Amatil does appear to be firmly in the buy zone. The company recently announced its strategy to return to sustainable earnings per share growth and is awaiting a significant injection of capital from parent The Coca-Cola Company for a stake in its Indonesian business.

Lastly, Telstra is expected to experience modest top line growth in the next year as its momentum in the mobile and network applications services markets continues. In addition, in FY15 it’s expected to pay a 30 cent dividend, placing it on a forecast yield of 5.3% fully franked.

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Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any of the mentioned companies.   

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