The market’s performance in the first trading days of 2015 has given even more support to those expecting a correction. Whether or not a correction is imminent there are still stocks that look like they will deliver a solid performance, but if you don’t buy them soon you will miss out. Here is the bull case for Canadian Natural Resources Limited (TSX:CNQ)(NYSE:CNQ), Goldcorp Inc. (TSX:G)(NYSE:GG), and Magna International Inc. (TSX:MG)(NYSE:MGA).
Canadian Natural Resources Limited
Analysts are extremely bullish on Canadian Natural Resources, expecting the stock to appreciate nearly 40% this year, a very aggressive estimate for a company that operates in, arguably, the most battered sector of the economy. The plunging price of oil is likely enough to make most investors head for the hills, but it is the investors who buy into stocks when everyone else is to scared to purchase who end up making the most profits.
Sure, there may be more downside for oil stocks, but a rebound has to happen sometime in the near future. Many oil companies are losing money at the current selling cost of oil, and this will cause them to shutter their higher cost operations. Canadian Natural Resources is a low-cost producer that can continue operating as prices slide, and may even increase its long-term future through the purchase of assets of struggling companies. The key here is to execute a position before we know that the oil market is on the upswing, because when that happens, Canadian Natural Resources stock will soar.
Gold prices stabilized in the later part of 2014, and while 2015 may not be a blockbuster year for the metal, chances are prices will remain steady. This means the bloodbath that gold miners experienced last year should be pretty much over; however, some high cost producers could still feel some pain. Goldcorp is a low-cost producer with a healthy balance sheet, which means even if gold stages an anemic performance this year, the company can profit. Once gold starts to truly recover Goldcorp will experience a great deal of upside; therefore now is really your chance to buy the stock of a company pretty much guaranteed to appreciate, at a low price point.
Magna International Inc.
This diversified automotive supplier has been on a tear recently, with its stock value up about 322% over the past five years. Magna’s gains have been thanks to an improving automobile sector, which took a tumble in the last recession. Magna is a very economically sensitive stock with the company’s performance largely dictated by the healthy of the auto sector.
The current bull run in automobile demand is expected to continue at least for a few more years, with the peak potentially coming this year. A healthy automotive sector will continue to push Magna’s stock higher, so for investors who are looking for quick, short-term gains, this could be the stock for you.
Canadian Natural Resources Limited, Goldcorp Inc., and Magna International Inc., all look like they will be top performers in 2015, but if you want to gain immediate income, then dividend payers are a great investment choice. The key is to invest in companies that will maintain or increase their dividends.