Next on the list is Intel (INTC). Granted, the company underestimated the transition to smartphones and tablets. But following a solid first-quarter report, Intel has all of the makings of a successful turnaround story.

I've become impressed by the degree with which Intel has accelerated the company's push into mobile, while (at the same time) shedding the company's dependency on personal computers. More importantly, by embracing the "Internet of Things," Intel is skating to where the puck is going to be.

The Internet of Things, which includes wearable devices, can potentially become a lucrative opportunity for Intel, especially given that consumers are buying fewer PCs. The wearable gadgets market is predicted to grow to $8 billion in the next four years (compare that to 2013's $1.4 billion).

To seize that growth opportunity, Intel has begun to make significant capital investments, including its acquisition of Basis Science, a company that specializes in wearable device technologies for health and wellness applications industry. With Intel stock closing Thursday at $26.45, I project the stock to double to at $50 in five years. And it pays a strong dividend at 3.4%.

If you've been following my articles, you might be surprised to find that IBM (IBM) has made this list. The stock has been all over the map this year. With shares closing Thursday at $193.53, IBM has posted year-to-date gains of 3.7%. At one point, the stock was down close to 8% following the company's weak January quarter.

The company is just too big to produce the sort of growth to inspire investors to believe. This was, again, the issue in the most recent quarter, as revenue missed estimates. IBM is a money-making machine. Very few companies can match Big Blue when it comes to cash flow and returns on capital. And when you factor IBM's strong yield of 2.00%, not to mention the safety net it brings, it's tough to argue against the stock.

IBM's future is interesting, with significant capital investments in the cloud, including cloud marketing firm Silverpop and database provider Cloudant. IBM should trade around $260 in five years on the basis on cash flow growth and cloud market share gains.

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