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Barron's Top 10 Stock Picks for 2015

Strategic Insights

— 1 min read

Barron's has announced its top 10 stock picks for 2015, featuring a mix of established companies and growth prospects. The list includes well-known brands such as General Motors, Bank of America, and Macy's, as well as lesser-known names like Fluor and Micron Technology. According to Barron's, these stocks have been undervalued or have growth potential that investors have not fully priced in. The list also highlights the importance of e-commerce in the retail sector, citing Macy's as a beneficiary of this trend.

Key Takeaways:

  • General Motors (GM) and Bank of America (BAC) are expected to benefit from having already priced in bad news in 2014, allowing each company to profit in 2015.
  • Boeing Company (BA) is expected to collect billions more in free cash than it reports in earnings due to its strong cash flow position.
  • Macy's (M) is expected to benefit from its e-commerce business, which has grown significantly in recent years.
  • American Airlines (AAL) has seen its shares double in 2014, but its valuation has shrunk, making it a potentially attractive investment opportunity.
  • Google (GOOG) and Royal Carribbean (RCL) have more growth potential than investors have priced in, with Google's search business and Royal Carribbean's cruise operations being key drivers of growth.
  • Fluor (FLR) is expected to do well if oil prices rebound, which could have a positive impact on the company's engineering and construction business.
  • Gilead (GILD) is expected to see its shares soar 25% in a year, driven by the success of its HIV and hepatitis C treatments.
  • Micron Technology (MU) is expected to jump more than 40% over the next year, driven by the increasing demand for dynamic random access memory (DRAM) chips.

Statistics:

  • Barren's top 10 stock picks for 2015 include: Boeing Company (BA), General Motors (GM), Bank of America (BAC), Macy's (M), American Airlines (AAL), Google (GOOG), Royal Carribbean (RCL), Fluor (FLR), Gilead (GILD), and Micron Technology (MU).
  • Gilead (GILD) is expected to see its shares soar 25% in a year.
  • Micron Technology (MU) is expected to jump more than 40% over the next year.
  • Boeing Company (BA) is expected to collect billions more in free cash than it reports in earnings.
  • American Airlines (AAL) has seen its shares double in 2014.

Sources:

  • Barron's
  • MidnightTrader
  • COMTEX
  • Comtex SmarTrend Alert (www.mysmartrend.com)
  • Comtex News Network, Inc.

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