The end of the year is fast approaching and looking at the top performers of the S&P/ASX 200 Index (ASX: XJO) (Index: ^AXJO) over the past six months, there were a few long-shot wins to rival any adrenalin-pumping horse race.
Looking at only share price gains, the number one stock has almost doubled since June. What I and probably every other investor would want to know is:
Were they one-off flukes that will sink back down, or could there be more to the story?
What could these stocks could do in 2015?
Here are some of the top 5 performers.
Caltex Australia Limited (ASX: CTX)
The oil refiner and fuel distributor/retailer is transforming itself away from volatile earnings refining, focusing on its retail and commercial fuel distribution business. Already, analysts are forecasting earnings to grow around 35% annually over the next two years. It has surprised the market with a 41% share price rise. One more kicker is that plummeting oil prices actually help its earnings because its costs are coming down faster than its product prices. Look for improved analyst forecasts if oil goes even lower.
Magellan Financial Group Ltd (ASX: MFG)
This specialist fund management company is up 42%. Rising international equity investments have really pumped up returns, but also the 60% increase in funds under management (FUM) in FY 2014 gave it a lot of investing firepower. On top of that increase, since June 30 FUM has climbed from $23.5 billion to $30 billion at November's end. More Australians want to take advantage of overseas investing, so Magellan Financial Group can look to more growth in 2015. Catch this rising star for your portfolio.
Qantas Airways Limited (ASX: QAN)
Who would have thought the beleaguered airline would rise so far, so fast? It is the number one gainer with a 90% share price gain in six months. Exactly one year ago, the stock slipped to about $1, but now trades at $2.44, so the one-year gain is even more surprising. It is conducting a massive business restructure with plans to cut about $2 billion in costs over three-and-a-half years. It has been hitting its targets so far. Falling world oil prices have been a boon to the airline since fuel is one of its biggest operating costs. Prolonged oil price weakness will give Qantas more earnings lift to potentially fly higher. From here on out, the stock could rise more, but probably the big gains are already baked in. Now it will come down to how the company can manage its restructuring. In the end, it is still an airline and they can be notoriously volatile for investors.
