Making sense of the 2015 Stock Picks

Magic 8 Ball

The major publications have placed their bets, now what?

A few days ago we scoured the internets for the first of many '2015 Stock Picks'. We highlighted the most viewed/popular articles regarding the subject. Let's review the stock picks that include IBM (IBM), Google (GOOGL), SeaWorld (SEAS), Cabela's (CAB),  Royal Caribbean (RCL), and Twitter (TWTR).

Of the stock recommendations we are looking at the low hanging fruit and the stocks that are out of favor with Wall Street. To view the articles and all the stock recommendations check out Top Stock Picks for 2015 (Barrons, MarketWatch, CNN Money, Kiplinger).  Most of the recommendations were no brainers such as Apple (AAPL), Lockheed Martin (LMT), and others. We would rather check out the dumpy selections that could make a comeback in 2015.  Those being IBM (IBM), Google (GOOGL), SeaWorld (SEAS), Cabela's (CAB),  Royal Caribbean (RCL), and Twitter (TWTR) which made the many lists cited.

A quick plug into and we see that Twitter and Google have the most to gain when considering the current average target price, 38% and 22% respectively. Cabela's and SeaWorld are the next that stand out with around 13% and 15% to gain over the next 12 months. This is using data today which of course can change but considering those 4 stocks did not prosper in 2014 maybe 2015 could be there year. 

Ticker Price 52wkHigh 52wkLow P/E EPS From 52wk High From 52wk Low Finviz TP % from Finviz TP
GOOGL $529.55 $615.42 $497.19 26.84 19.73 -16.22% 7.21% $644.00 21.61%
IBM $162.06 $199.21 $150.50 10.17 15.93 -22.92% 7.84% $68.00 -58.04%
CAB $52.60 $72.53 $46.24 18.56 2.83 -37.89% 13.60% $59.27 12.68%
SEAS $17.97 $35.30 $15.11 25.13 0.72 -96.44% 16.43% $20.60 14.64%
RCL $82.95 $84.15 $45.95 28.05 2.96 -1.45% 45.40% $75.19 -9.36%
TWTR $36.56 $70.43 $29.51 #N/A -2.17 -92.64% 19.68% $50.39 37.83%

Twitter shares fell 47% last year, SeaWorld down 37%, Cabela's 20%, and Google down 5%. Something to think about while you being to research what stocks you want to play in 2015. 

  • Google is into everything and needs no introduction about how bad ass it could be for an investment. Get past the $500 sticker price, the stock is worth it. 
  • Twitter is subject to massive spikes and volatility and they are not profitable. However the social media play is here to stay, they just need to fire the CEO and off it goes. 
  • Cabela's is solid sporting goods retailer, the best in breed when compared to the others. 
  • Finally SeaWorld is stupid but people love Orcas.  Give it a year after Blackfish and watch the magic return to SeaWorld.  

Mastery Bottom Line - Big Trouble in Little China - Lightning

Mastery Bottom line:

For now Mastery would recommend Google (GOOGL) without question. Then go for Cabela's (CAB), followed by Twitter (TWTR), and believe it or not we are warming up to SeaWorld (SEAS).