The Ultimate Blue Chip Stocks of 2023: Thriving During and After the Pandemic

 

Overview

When the PSE Index stocks dropped from 7,742 at the beginning of the year to 4,039, a nine-year low, the stock market has

already lost  as much as 47% of its value this year. However, despite the potential for another market downturn, there are a select

few businesses that operate in recession-resistant sectors that are likely to survive and even prosper in these trying times.

Here are the top five blue chip stocks during the pandemic:

 

• Globe Telecoms, Inc.

With more than 94.2 million mobile users and 2.0 million home broadband customers, Globe Telecoms, Inc. (PSE: GLO) stands as one of the largest telecommunications service providers in the Philippines, solidifying its dominant position in the market. As the demand for mobile connectivity and home internet services continues to rise, Globe Telecom remains a cornerstone of the country’s telecommunication infrastructure. Particularly in the wake of the COVID-19 pandemic, when millions of people transitioned to remote work and virtual learning, Globe saw its business model adapt successfully to the increasing demand for stable and high-quality internet and Wi-Fi services.

The demand for data-related services has become even more crucial in recent times, with most Filipinos relying on mobile and broadband services for everything from social communication to accessing e-commerce platforms and educational resources. As the economy becomes more dependent on digital connectivity, Globe has proven to be a resilient player in the telecommunications industry, making it relatively immune to the economic downturns that have impacted other sectors. Given its extensive market base, Globe’s services are integral to daily life in the Philippines, providing essential communication channels that are likely to experience consistent demand.

Data-related revenues make up about 71 percent of Globe’s total revenue, reflecting the shifting dynamics of the telecom industry as it evolves from traditional voice services to mobile data and internet services. Mobile data accounts for 48 percent of those revenues, a testament to the growing trend of mobile internet consumption in the Philippines. The company has also seen a significant rise in home broadband subscriptions, with 14 percent of the total revenue being generated from this segment. This diversification of revenue streams shows that Globe has successfully adapted to the changing needs of its customer base.

Additionally, corporate data services make up 9 percent of Globe’s revenue, highlighting the growing demand for businesses to improve digital infrastructure and connectivity, especially as more companies embrace digital transformation and remote working models. Globe’s ability to cater to both individual and corporate needs positions the company well for continued growth, even in uncertain economic conditions.

In terms of financial performance, Globe has demonstrated strong revenue growth over the years. According to the company, its overall service revenues increased from P132.8 billion in 2018 to P149 billion in 2019, reflecting a 12 percent rise. This upward trajectory in revenue growth was complemented by a reduction in operating costs, which led to a notable 20 percent increase in net income, reaching P22.3 billion. These figures showcase Globe’s ability to efficiently manage its resources and operate with increasing profitability, even in the face of competition and external economic pressures.

Investors looking to add stocks with stable growth prospects in a volatile market may find Globe Telecoms a solid option. With a strong market position, diversified revenue streams, and a proven track record of growth, Globe offers investors a reliable avenue for capital appreciation. Moreover, as the Philippines continues to invest in digital infrastructure and as internet penetration grows, Globe is well-positioned to capitalize on these trends, ensuring long-term growth and sustained profitability for years to come.

The company’s consistent performance, combined with its focus on technological innovation and expansion into new service areas, makes Globe Telecoms an attractive stock to hold for those looking for a stable telecommunications investment. Whether it’s through expanding mobile data services, increasing broadband customer base, or catering to corporate clients, Globe is poised to continue its leadership in the market, making it a solid pick for long-term investors seeking reliable returns in the telecom space.

• Manila Electric Company

The largest electric power distributor in the nation is The Manila Electric Company, also known as Meralco (PSE: MER), with a

franchise area that includes 6.4 million customer accounts in 36 cities and 75 municipalities. Due to the demand for the electric

services it offers, MER has historically flourished in challenging economic conditions.

 

When opposed to other companies that are economically sensitive, MER offers a good defensive play because it is unaffected by

business cycles. On the heels of overall revenues of P318 billion, up 4.6 percent from the previous year, MER’s net income

growth in 2019 was nearly unchanged at 1.1 percent, or P23.2 billion. One of the blue-chip stocks that have performed the best is

MER, which has recovered 10.9 percent so far.

 

Based on its most recent cash dividend and the stock’s current share price, MER has a dividend yield of 5.9 percent.

 

• Manila Water Company, Inc.

Over six million people from 23 cities and municipalities are served by Manila Water Company (PSE: MWC), the country’s largest

provider of water and used water services, in Metro Manila’s East water concession region. MWC is a utility firm that, like MER,

has a history of outperforming the PSE Index during a market slump.

 

From P19.8 billion in 2018 to P21.9 billion in 2019, MWC’s total revenues climbed by 11%. However, as a result of rising

operational costs and the water supply deficit in 2017, its net income decreased by 16% to P5.5 billion. After an investor group

led by business tycoon Enrique Razon on behalf of Prime Metroline Holdings agreed to buy additional shares in MWC for P10.7

billion plus proxy rights for a total economic interest of 25%, This blue chip stocks has since recovered to a high of P14.96 per share.

 

• Puregold Price Club, Inc.

With 423 shops strategically positioned across the nation and a total of around 550,000 square meters of net selling space,

Puregold Price Club (PSE: PGOLD) is the biggest supermarket chain in the Philippines. Due to the fact that consumer demand

for groceries has consistently outlasted previous economic downturns, supermarket retailing has come to be seen as a

recession-proof industry.

 

It is predicted that net income for 2019 should have reached P6.7 billion, or 2.9 percent more than P6.5 billion reported in 2018,

on the back of 10-percent growth in revenues of P154 billion, based on the actual nine-month financial results of PGOLD in

September of last year. With a cumulative gain of 29.78 percent, PGOLD has been one of the best-performing blue chip stocks

company since the shutdown.

 

• Century Pacific Food Tuna, Inc.

One of the biggest branded food companies in the Philippines, Century Pacific Food, Inc. (PSE:CNPF) has a wide range of

reliable brands in the dairy, canned and processed fish, and canned meat industries. When there is a crisis, CNPF is one of the

companies that directly benefit from the increased demand for canned food products. This year, sales may exceed their usual

growth of 10 to 15 percent.

 

As total revenues increased by 7% to P40 billion, mostly due to its branded items, which grew by 11%, CNPF’s net income

increased by 11% to P3.1 billion from P2.8 billion in 2018.

 

A rise in earnings of at least 20% could help the stock of CNPF to trend higher in 2019 given the anticipated record sales. Higher

profits equate to higher share worth. With the stocks currently trading at P0.89 per share, a 20% growth would equal P1.068 this

year.

 

After the Pandemic

There are 30 blue-chip stocks that compose the PSE index. Here are the top ten blue-chip stocks after the pandemic:

 

• Ayala Corporation

One of the most established and well-known commercial organizations that offi the Philippines is Ayala Corporation. For job

seekers, it is the top blue-chip stock company in the Philippines. Real estate development, banking and financial services,

telecommunications, water distribution infrastructure, electronics manufacturing services, automotive dealerships, overseas real estate investments,

business process outsourcing, and renewable energy and power are all included in its diversified business portfolio.

 

Anyone who wishes to foster thought leadership, personal empowerment, and being rewarded for effort is a good fit for Ayala

Corporation.

 

• Banco De Oro (BDO)

A full-service universal bank, BDO offers a variety of corporate, retail, and business banking services. Traditional lending and

deposit products, treasury, trust banking, private banking, cash management, leasing and finance, remittance, insurance, retail

cash cards, and credit card services are among the services offered.

 

• Bank of the Philippine Islands (BPI)

The first bank in the Philippines and all of Southeast Asia was established in 1851 and is known as Bank of the Philippine Islands.

As a universal bank, BPI provides a variety of financial products and services to both retail and business customers through its

subsidiaries and affiliates.

 

Filipinos have worked with BPI for many years as their dependable financial partner, and the two of them have overcome many

historical obstacles. Despite difficulties, many people are happy with BPI. Currently seeking motivated people who wish to

contribute to a top-performing financial institution, BPI is continuing to succeed in leadership. This company is considered as blue chip stock company

 

• Globe Telecom

Globe Telecom is a dynamic company that works hard to provide customers with the best and most individualized products and

services while also making its employees and shareholders happy. Globe Telecom is a telecommunications company.

 

The company’s goods and services continue to flourish and improve the lives of millions of customers.

 

• Jollibee Foods Corporation (JFC)

Since the 1970s, Jollibee has been one of the most well-liked fast food options. From the start, it pushed major competitors like

McDonald’s to cater to Filipino tastes. Having been in business for nearly a decade, Jollibee is a well-known brand with locations

all over the world.

 

Jollibee is continuously looking for candidates that want to be a part of a regional fast-food business that rules the market, from

marketing to food services.

 

• Metropolitan Bank and Trust Company (Metrobank)

With the greatest integrated network of over 2,200 automated teller machines nationally, and more than 900 domestic and 30

overseas branches, subsidiaries, and affiliates, Metrobank is the leading universal bank in the nation. As a well-known leader in

the nation’s banking sector, Metrobank has earned the reputation of being a reliable banking partner by upholding its commitment

to keeping you in good hands.

 

 

Because of the durability and power of its brand, Metrobank is now regarded as a reliable banking partner. The Bank’s

employees, who are dedicated to product quality, service distinction, outstanding work ethics, and best practices in governance,

continuously drive the organization’s development, which is guided by a shared vision.

 

• Megaworld Corporation

One of the best blue-chip s companies for new hires is this one. Megaworld has been at the forefront of real estate market

developments as the first of its kind in the Philippines. It was the first to embark on projects for middle-class condominium living,

construct office buildings for businesses focused on business process outsourcing, establish overseas offices to reach the Filipino

market abroad, and provide flexible payment terms and home financing options. Megaworld has launched more than 240

residential complexes, office towers, shopping malls, and hotels during the past 27 years.

 

• San Miguel Corporation

The largest publicly traded food, beverage, and packaging corporation in Southeast Asia, San Miguel Corporation (SMC),

employs over 15,000 people across more than 100 significant sites in the Asia-Pacific.

 

San Miguel Corporation is searching for individuals to join them on this journey that share their values and have a high level of

initiative and responsibility.

 

• Philippine Long Distance Telecommunication (PLDT)

The top provider of digital and telecommunications services in the Philippines is PLDT. The Philippines’ largest fiber optic

backbone, as well as fixed line and cellular networks, are used by PLDT to provide a wide range of telecommunications and

digital services through its main business groups, including fixed line, wireless, and others.

 

• Universal Robina Corporation (URC)

One of the biggest and best-known manufacturers of branded consumer food and beverage products in the Philippines, Universal

Robina Corporation is also increasingly present in ASEAN markets.

URC offers engaging stocks opportunities for people to realize their potential and hone their skills, and it empowers its employees to

become whole persons and socially responsible leaders. URC encourages people to be their best selves and gives them fulfilling

careers.

 

 

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