The path of least resistance for our share market is up! I think this will remain the case for the next few months – barring some Black Swan event.
So while the S&P/ASX 200 (Index:^AXJO) (ASX:XJO) index may be backing away from setting a new record high today, I think it's only a matter of time before it pushes into uncharted waters.
Why stocks can run higher
This is because the biggest headwinds buffeting global markets have eased significantly. The outlook for economic growth improved with the US and China signing phase one of a trade deal and the chance of a smooth Brexit increased after the Tories' decisive win at the ballot box.
This means there's more room for growth stocks to run higher through to next year's reporting season, which only gets into full swing in the third week of February.
This could herald relative calm for our share market over the next two months! What a welcomed change that would be.
In such an environment, I think there are two stocks that are well placed to outperforming into 2020.
Well-priced growth
Not all growth stocks are trading at a premium. The Worley Ltd (ASX: WOR) share price is a case in point.
The stock is trading at a discount to the market and its historical valuation even though Worley is expected to deliver double-digit growth in FY20. Its big growth path comes from the acquisition of Jacobs' ECR business earlier this year.
The stock's lacklustre share price performance is perhaps a reflection of worries that the integration of the group's newest division isn't going as smoothly as management makes it out to be.
But I think the downside risks are largely accounted for in the current share price but little of the upside is.
This means 2020 could be the year Worley shines.
Jetting higher
Another stock with big growth potential in 2020 is the Webjet Limited (ASX: WEB) share price. The stock hit some turbulence this year but it's annual general meeting (AGM) update indicated that things aren't as bad as some sceptics believe.
Recent speculation that the online travel booking group may be attracting takeover interest from overseas buyers doesn't hurt sentiment either.
While I won't recommend buying a stock based on corporate interest, news that some bidders may be sniffing around adds to my view that the stock is cheap.
