2014 has been a very mixed year in terms of the performance of major ASX shares.
Indeed, there have been impressive gains to be had, and also a number of potential banana skins to avoid.
However, 2015 is a new year and, just because a stock performed well in 2014, doesn't necessarily mean that this will continue into next year. That's especially the case if valuations are rather rich after a year of strong gains.
Similarly, poor performers could turn things around next year and post far higher gains than are currently being priced in by the market.
With that in mind, here are three stocks that could deliver stunning total returns in 2015.
Telstra Corporation Ltd
While current year forecasts for Telstra Corporation Ltd (ASX: TLS) are somewhat disappointing, with earnings set to fall by 12.6%, next year is expected to be much better. That's at least partly due to a vast share buyback, although the company's dominant position in the domestic mobile market and its increasing overseas exposure are also key reasons why its future appears to be bright.
Indeed, it seems as though the market is optimistic regarding Telstra's future prospects, with the company's share price having risen by 7% during the course of the year. And, with earnings forecast to be 10% greater in FY 2016 than in the current year, Telstra's current P/E ratio of 15.6 could still indicate there is good value on offer.
As such, it could continue its strong recent performance and, with a fully franked yield of 5.3%, Telstra's total return may turn out to be very impressive in 2015.
Fortescue Metals Group Limited
Unlike Telstra, the share price of Fortescue Metals Group Limited (ASX: FMG) has been hugely disappointing in 2014. Clearly, a declining iron ore price has hit the company hard, with its shares down 36% in the last three months alone.
However, with Fortescue's share price offering such a wide margin of safety, this could be a great time to buy a slice of the business. Certainly, earnings look set to fall next year, but a P/E ratio of just 9.5 using next year's forecast earnings highlights just how cheap they are. As a result, any strengthening of the iron ore price could lead to a major surprise on the upside for investors in the stock.
And, with a fully franked forward yield of 3.8% that is covered three times by earnings, Fortescue could deliver a strong income return, as well as capital gain, in 2015.
Transurban Group
Since their March 2009 lows, shares in Transurban Group (ASX: TCL) have risen by 87%. However, there could be much more to come, since the toll operator continues to deliver consistently strong growth numbers that the market could value even more in 2015.
Indeed, with the prospects for the global economy continuing to be highly uncertain, investors could begin to value strong and reliable earnings growth even more than they do at present. And, when it comes to that type of growth, Transurban has a supremely strong track record, with its bottom line growing at an annualised rate of 19.1% over the last ten years.
Furthermore, with shares in Transurban yielding a partially franked 4.4%, their total return could be excellent come economic rain or shine in 2015.
