Here’s why Capitol Health Ltd, Chorus Ltd and Caltex Australia Limited could still be ‘buys’ in 2015

With the S&P/ASX 300 (Index: ^AXKO) (ASX: XKO) continuing to head lower this week there doesn’t look to be much hope of a so-called Santa Rally coming to the rescue and boosting the index so that it finishes the year in positive territory.

Based on its current level of 5,152, the index is set to end down around 4% for the calendar year.

While, the overall market’s performance this year has been disappointing, savvy stock pickers have still been able to position their portfolios for sensational gains.

Capitol Health Ltd (ASX: CAJ) has soared 95% this year as the company’s roll-up strategy of diagnostic imaging (x-ray) services gains momentum. While the trailing price-to-earnings (PE) multiple is large, shareholders obviously believe the multiple is justified given the forecast for significant growth in earnings to continue.

With the recent acquisition of Sydney-based Southern Radiology Group and a $37.5 million capital raising to help drive further momentum for the group in 2015.

Chorus Ltd (ASX: CNU) is New Zealand’s largest telecommunications infrastructure company and could be considered NZ’s version of Australia’s NBN Co. With a dual-listed structure, the ASX-listed shares have rallied 89.5% year-to-date thanks to proposed regulatory changes which would allow it to charge customers higher wholesale prices for accessing its copper lines and broadband network.

This regulatory change, coupled with a tailwind of increased data demands stands Chorus in good stead for 2015.

Caltex Australia Limited (ASX: CTX) has been a solid performer all year but has enjoyed a particularly strong rally over the past few months in response to lower oil prices. Just last week the oil marketer and refiner provided updated market guidance that it expects underlying profit before tax to surge over 40% to between $450 million and $470 million this year thanks to a jump in the refiner margin in the second half of the calendar year.

While the margin is expected to weaken next year, Caltex’s new long-term strategy appears to be working, setting the company up for a solid 2015 also.

Last year's top performers won't be the best next year! Capitol Health, Chorus and Caltex may still have further to run but there is 1 Stock we expect will do even better! Hot off the presses...The Motley Fool's top stock for 2015 is a sexy ASX tech company with a stunning track record and plenty of room to run. Discover our analysts' hands-down favourite bet for 2015 in this brand-new FREE report. Simply click here to grab your copy.

Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned.


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