{"id":326206,"date":"2023-12-29T09:03:21","date_gmt":"2023-12-29T01:03:21","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=326206"},"modified":"2024-09-01T22:39:10","modified_gmt":"2024-09-01T14:39:10","slug":"24-stock-picks-for-2024","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/24-stock-picks-for-2024\/","title":{"rendered":"Exclusive: 24 Stock Picks for 2024"},"content":{"rendered":"\n

Using data from Bloomberg, we filtered out 24 stocks with more than 24% potential upside to the consensus target rices (TP) and currently trading at a 2024 forward P\/E that is at least 24% lower than its 5-year average P\/E. <\/p>\n\n\n\n

Eleven stocks (11) in the resulting list are index names: PGOLD, GTCAP, AGI, MBT, URC, LTG, NIKL, SM, BDO, WLCON, TEL.<\/p>\n\n\n\n

Non-index COSCO offered the highest potential upside of 162.0%, but this is only based on one analyst forecast. The second best would be our top consumer pick for 2024, RRHI, which has a potential upside of 79.0% to consensus Target Price of P70.51. <\/p>\n\n\n\n

Interestingly, there are still undervalued banks despite the run-up in banking stocks this year, with PNB, SECB and MBT all offering potential returns that are upwards of 40%. Banking giant BDO also still offers a robust 27.3% potential upside despite leading the banking rally this year.<\/p>\n\n\n\n

Thinly-traded ALLHC led our list of stocks that are trading at a P\/E ratio that is more than 24% below its own 5-year average P\/E. However, ALLHC\u2019s ratios have been distorted by frothy valuations in recent years.<\/p>\n\n\n\n

Second on the list is PNB, which also has distorted data due to one-off gains. Third on the list is GTCAP, which is our top conglomerate pick as its cyclical businesses would likely do well in the event of an economic upturn. GTCAP\u2019s forward P\/E of 4.7x is 64.7% lower than its 5-year average of 13.2x. <\/p>\n\n\n\n

Our other top consumer pick for 2024, FB, is trading at an almost 50% discount to its historical P\/E, which further bolsters our position that the stock is undervalued. <\/p>\n\n\n\n

All of these 24 stocks, except for SM, FB, WLCON, DNL, and URC, are also currently trading at single-digit P\/E ratios.<\/p>\n\n\n\n

Our Stock Picks<\/h3>\n\n\n\n
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<\/div>\n\n\n\n

Last trading day of 2023 today<\/h3>\n\n\n\n

We expect trading volumes to remain thin on the last trading day, and it will likely be a lackluster day to cap off a lackluster year for equities. However, despite the Bangko Sentral\u2019s persistent hawkishness, we believe that rate cuts are inevitable next year and we expect the BSP to cut rates by at least 1.00% to boost economic activity. <\/p>\n\n\n\n

Once the central banks start cutting rates, bond yields will eventually start falling and make stocks more attractive again to investors. Falling yields abroad would also likely drive funds back to emerging markets like the Philippines on the hunt for better returns, which could provide much-needed liquidity to our moribund market. <\/p>\n\n\n\n

Instead of sitting out the last trading day, it could be profitable for investors to take advantage of these quiet days to start positioning in these undervalued stocks ahead of the January frenzy to recalibrate portfolios.<\/p>\n\n\n\n

<\/div>\n\n\n\n

This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Here\u2019s a commentary on an important issue or event affecting the stock market<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1372,11],"tags":[],"class_list":["post-326206","post","type-post","status-publish","format-standard","hentry","category-stock-picks","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/326206","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=326206"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/326206\/revisions"}],"predecessor-version":[{"id":326209,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/326206\/revisions\/326209"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=326206"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=326206"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=326206"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}