Overall, this was a very good year for most stocks, but as they year comes to a close, concerns surface over what is in store for 2015, with many market experts claiming that a correction is due.
Out of all the stocks that enjoyed a solid performance in 2014, there are two that stand out to me that have the potential to extend their bull run in 2015. These companies are WestJet Airlines (TSX:WJA) and BlackBerry Ltd. (TSX:BB)(NASDAQ:BBRY). Here is why I think they will continue their rally.
Over the past 52 weeks, WestJet Airlines stock has gained 21%, putting it just in bull market territory. Looking forward to 2015, one big positive factor WestJet has going for it is oil prices. As we close 2014, oil is sitting at multi-year lows, and with low oil prices come low fuel prices.
With fuel being one of WestJet’s largest expenditures, this will most definitely help the company’s bottom line in 2015. Sure, oil prices may pick up as the year goes on, but prices are so low that the ascent won’t likely be enough to reverse this positive factor.
I also see WestJet continuing to benefit from management’s business strategy in 2015. The company still has a few tricks in the hat that could result in better earnings, which almost always result in a higher stock value. Management is reportedly looking into putting another row of seats in its 737s to boost margins and the company’s CEO recently said that he is “open to lowering fares,” which could boost demand for flights.
BlackBerry’s stock has had a very impressive year, gaining over 70% as the company’s new CEO honed in on a new business strategy for the company, which Wall Street has so far embraced. This was a big change for a company that many previously thought would go bankrupt.
I, for one, am a believer in the new strategy. While I am not convinced that BlackBerry will become a market leader, its new strategy — focusing on the company’s niche market rather than trying to beat other phone makers in their key markets — has been a positive for the company.
While many companies see a rise in their stock value when a new CEO enters on the sentiment alone, in the case of BlackBerry, John Chen is putting into place, real, tangible changes that I think will propel the stock into the next year. The 70% gains may scare some investors off, but I think a good chunk of these gains were part of the company’s prior plunge putting the stock into oversold territory.
Chen’s strategy to focus on the company’s niche, and the fact that its niche could in the future include China, make me think the bull run in the stock is far from over, and more gains are likely in 2015, particularly if some partnerships in China are formed in the coming months.
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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Leia Klingel has no position in any stocks mentioned.