3 stocks set to soar in 2015: National Australia Bank Ltd., Woodside Petroleum Limited and CSL Limited

Now could be the right time to buy National Australia Bank Ltd. (ASX:NAB), Woodside Petroleum Limited (ASX:WPL) and CSL Limited (ASX:CSL).

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It's always difficult to know exactly when to buy and sell shares. After all, there isn't a 'smoking gun' that tells us all when markets are at their very bottom or very top. And, when you add fear and greed to the mix, making investment-related decisions can be very challenging.

However, with the ASX treading water at the moment, there are a number of stocks that could be worth buying for the long run. Here are three prime examples that could soar as early as this year.

National Australia Bank Ltd.

On the face of it, National Australia Bank Ltd. (ASX: NAB) doesn't appear to be a great value play at the moment. After all, it has a price to earnings (P/E) ratio of 14.8, which is higher than the wider banking sector's P/E ratio of 13.9. However, NAB could see its share price rise due to its strong income potential.

For example, it is forecast to increase dividends per share at an annualised rate of 5.6% over the next two years. This is an impressive rate of growth, being over twice the current rate of inflation, and means that it could be yielding as much as 6.4% in the next financial year. With interest rates being so low, this could boost investor sentiment and push NAB's share price higher.

Woodside Petroleum Limited

When it comes to negative news flow, investors in Woodside Petroleum Limited (ASX: WPL) have experienced their fair share of it. Not only has the price of oil dominated in recent months, but Woodside's planned takeover of Apache's liquefied natural gas (LNG) assets is now being informally investigated by the Australian Competition and Consumer Commission. As a result, there remains a chance that the deal simply will not go through.

However, the fact that Woodside can even contemplate such major deals at a time when most of its peers are struggling to tread water shows just how strong its long term future is. With a low cost curve and relatively robust finances, as well as an estimated forward yield of 5%, Woodside could be an excellent performer this year.

CSL Limited

The last 10 years have been astoundingly profitable for investors in CSL Limited (ASX: CSL), with it delivering an annualised total shareholder return of 25.8%. That's significantly higher than the vast majority of its index peers and, looking ahead, there could be much more to come.

That's because CSL continues to offer superb defensive qualities, with its business model being relatively detached from the wider economy. As such, its revenue is relatively resilient and, as further evidence of its defensive appeal, CSL has a beta of just 0.6. This means that its share price should move by just 0.6% for every 1% move in the wider index, thereby making it a great defensive play. And, if market sentiment remains uncertain, then defensive stocks such as CSL could gain a real boost.

Of course finding the best stocks for the long term is a tough ask – especially when work and other commitments limit the amount of time you can spend trawling through the index for them.

Motley Fool contributor Peter Stephens does not own shares in any of the companies mentioned.

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