Barron’s favorite stocks for 2014 had a market beating year, so what are the top-picks for 2015?
The top-picks for 2014 beat the market, gaining an average of 20.6% (including dividend), compared with 18.2% for the S&P 500 index. The top gains were US Airways and Intel with a performance of 133% and 51%, respectively. The two worst performers were General Motors (GM) and Barrick Gold (ABX), with loses of 16% and 31%.
The 10 favorite stock from Barron’s point of view for 2015 are:
General Motors (GM) (expected return for 2015: 50%)
Bank of America (BAC) (20%)
Boeing (BA) (20%)
American Airlines (AAL) (40%)
Google (GOOGL) (20%)
Micron Technology (MU) (40%)
Macy’s (M) (20%)
Royal Caribbean (RCL)
Gilead Sciences (GILD) (25%)
Fluor (FLR) (20%)
Given the average return of the Barron’s 2014 list of 18.1% the expected returns for 2015, ranging from 20% to 50% are rather optimistic. Surprisingly GM is staying on the list, after a performance of -16% in 2015. According to Barron’s “GM could reach $5 a share in earnings as soon as 2016. As that number comes into view over the next year, its shares could rise nearly 50%, to $50”