Five stocks have drawn attention from analysts as stocks to buy in 2015, and price values that make them attractive to those seeking undervalued stocks. Some are undervalued because of sell-offs from news or events, while others are growing issues that have significant upside prospects due to factors such as new markets.
Whitewave Foods (WWAV)
Experts have listed this among stocks to buy in 2015 because of strong 2014 performance. This included a record third quarter earnings total and the forward momentum of new markets. This stock performed well in 2014, but it may be an undervalued stock because of a high upside for 2015. The company produces packaged foods and has some well-established brands such as Silk brand soy milk. Analysts project optimism for 2015 based upon expected market growth in China. The company has a venture relationship for the production of dairy products in China with the leading producer there. With a 49 percent stake and a market of 1.3 billion, Whitewave Foods can grow significantly in 2015. It can maintain its markets in Europe and North America where it expects increased consumer spending. Its brands appeal to traditional and more health conscious consumers.
Its stock grew in 2014 increased in price and value. However, it has been singled out again by analysts on the strength of the opportunities for marketing. One key note was the growth of Instagram. The popular user service had 200 million active users in April, 2014 but grew to 300 million by year end. FaceBook has announced plans to add video advertising. Experts have cited the Instagram user base as one of the many advantages for Facebook and growth prospects. They predict Facebook will add video advertising and use it to monetize Instagram as well. With several emerging paths to increased marketing revenues, Facebook and its impressive list of partners seem poised for growth from new and expanded revenue streams.
In the high performing technology sector, semiconductors stocks rose steadily in 2014. The Philadelphia Semiconductor Index with a 28 percent increase for example outperformed Nasdaq and S&P 500. Qualcomm did not perform as well as the overall sector. Analysts identified it as a prospect for improvement in 2015. They cite the profitable income stream from royalties on many devices including Smartphones. Some note the problems the company has had in collecting royalties in China as an issue for further resolution. The market background includes continued global growth in mobile devices and phones using 3G and 4G technology. Qualcomm maintains institutional advantages such as a strong management system for bringing high-quality products and remarkable innovations to market. They have improved processing speeds for industry-leading Snapdragon processor.
The company was spun from General Electric in 2004 and nearly disappeared in the crash of 2008 due to mortgage insurance losses. It has re-emerged as a leader in long-term health care insurance. Experts picked this stock for projected growth in 2015 because its business base is strong, and a conclusion that the market has undervalued its stock. The company posted an increase in long-term care insurance reserves of about $500 million in November, 2014. The stock fell sharply on those reports, losing approximately 40 percent in price. The stock has not fully recovered from those losses. Genworth is the largest long-term care insurance provider in the U.S.
Chicago Bridge and Iron (CBI)
A late year sell-off of the stock has depressed its price, and some analysts have cited it as an opportunity. The company specializes in energy and industrial infrastructure, and it has a large backlog of potential projects. Rated as a high-quality company and a leader in its field, the builder’s stock may be undervalued from investors seeking to avoid the effects of falling oil prices on energy related projects. As a background factor, public expenditures for infrastructure project may increase in 2015 as federal and state governments undertake infrastructure projects including bridges, tunnels, and highways.