Top 5 Explosive Stocks to Watch in 2024

 

 

 

Investors must choose stocks with great potential for 2024 as the Philippine economy grows. Considering worldwide trends and their significance to the Philippine market, these five top equities are worth watching.

AC, or Ayala Corporation

Ayala Corporation, one of the Philippines’ oldest and most respected conglomerates, has a longstanding reputation for stability, innovation, and adaptability. The company operates in various industries, including real estate, banking, telecommunications, healthcare, and energy. Its diversified business portfolio provides a strong foundation for long-term growth, making it an attractive investment option in 2024.

Why Invest in Ayala Corporation?

• Diversified Business Portfolio: Ayala’s subsidiaries—such as Ayala Land (real estate), Bank of the Philippine Islands (banking), Globe Telecom (telecommunications), and AC Energy (renewable energy)—contribute to its resilience against economic downturns and provide multiple revenue streams.

• Sustainable Growth Strategy: The company continues to expand its renewable energy ventures through AC Energy, which is a key player in solar, wind, and hydroelectric power projects. With the global push toward clean energy, Ayala Corporation is strategically positioned to benefit from environmental and government policies supporting sustainability.

• Digitalization Efforts: The company has been investing in fintech and e-commerce platforms to stay ahead of evolving consumer trends. Globe Telecom, in particular, has been expanding its 5G infrastructure and fiber internet services, capturing a larger market share in the digital space.

• Strong Financial Performance: Ayala has consistently demonstrated financial discipline, with its subsidiaries generating stable revenue streams despite economic challenges.

Example of Growth Potential:

• Ayala Land is expanding its large-scale, mixed-use developments, such as Nuvali in Laguna, Vermosa in Cavite, and Arca South in Taguig. These projects cater to the increasing demand for residential and commercial properties in urban and suburban areas.

• Globe Telecom is aggressively rolling out 5G networks and improving fiber-optic connectivity to support the rising demand for digital services and remote work solutions.

• AC Energy aims to become one of the largest renewable energy providers in Southeast Asia, with ambitious plans to expand its solar and wind power projects.

With Ayala’s long-term vision, innovative mindset, and diversified revenue streams, the company remains a top pick for investors seeking stability and sustainable growth in 2024.

Summit Holdings JG, Inc.

JG Summit Holdings is one of the largest and most diversified conglomerates in the Philippines, with investments in banking, real estate, petrochemicals, food manufacturing, and aviation. The company is well-positioned to benefit from the post-pandemic recovery and the continued growth of the consumer sector.

Why Invest in JG Summit Holdings?

• Aviation Recovery: Cebu Pacific, a key subsidiary of JG Summit, is seeing a strong recovery as travel restrictions ease and tourism demand surges. The budget airline sector is expected to grow, with more Filipinos resuming travel for both business and leisure.

• Consumer Goods Strength: Universal Robina Corporation (URC), another subsidiary, is one of the leading food and beverage manufacturers in the Philippines. URC owns iconic brands such as Jack ‘n Jill, C2 Green Tea, Great Taste Coffee, and Chippy, which remain highly popular among Filipino consumers.

• Petrochemical Growth: JG Summit Petrochemicals Group is ramping up its production capacity, capitalizing on increased demand for plastic resins and petrochemical products in manufacturing, construction, and other industries.

• Retail and Real Estate Expansion: Robinsons Land, a subsidiary of JG Summit, continues to expand its network of malls, office spaces, and residential developments to capture the rising demand for commercial and housing properties.

Example of Growth Potential:

• Cebu Pacific has expanded its fleet and resumed more domestic and international flights, positioning itself to benefit from the resurgence of the budget airline industry in Southeast Asia.

• URC is strengthening its regional presence in ASEAN markets, particularly in Vietnam, Thailand, and Indonesia, driving international sales growth.

• Robinsons Land is aggressively expanding logistics and warehousing facilities, catering to the increasing demand for e-commerce and online retail distribution centers.

With a solid mix of businesses spanning key industries, JG Summit is a strong candidate for investors looking for a combination of growth, resilience, and diversification in 2024.

The Corporation for SM Investments (SM)

SM Investments Corporation is one of the largest and most influential companies in the Philippines, dominating the retail, real estate, and banking industries. With the continued expansion of the Philippine economy and rising consumer confidence, SMIC is expected to perform well in 2024.

Why Invest in SM Investments Corporation?

• Retail Sector Strength: SM’s massive shopping mall network ensures steady foot traffic and robust sales. As consumer spending recovers, SM’s department stores, supermarkets, and specialty shops will benefit from increased discretionary spending.

• Real Estate Expansion: SM Prime Holdings, the company’s real estate arm, is actively developing residential, commercial, and mixed-use properties, capitalizing on the demand for housing and office spaces.

• Banking Growth: BDO Unibank, a subsidiary of SM, remains the largest and most profitable bank in the country. It continues to see growth in loans, deposits, and digital banking services.

• Resilience in Economic Downturns: Due to its diversified business structure, SMIC has historically demonstrated resilience during economic downturns, making it a safe long-term investment option.

Example of Growth Potential:

• SM Prime Holdings is developing new township projects such as South Coast City in Cebu and SM City Iloilo’s expansion, further strengthening its presence in key urban centers.

• BDO Unibank is increasing its focus on digital banking, launching innovative online services and fintech partnerships to cater to the growing number of Filipinos embracing cashless transactions.

• SM Supermalls continues to expand its reach in provincial areas, targeting underserved regions to capture more market share in retail and entertainment.

With strong financial performance, a dominant market position, and steady expansion plans, SM Investments Corporation remains a top choice for investors looking for stability and long-term returns.

Nvidia (NVDA)

Nvidia is a company to watch because of its leadership in semiconductor technology, especially GPUs, which are crucial for artificial intelligence and gaming. Nvidia’s goods are essential for Philippine investors in the tech sector, which is expanding due to the nation’s intensified attempts to digitize. High-performance computing systems and AI-driven solutions are becoming increasingly in demand, guaranteeing Nvidia’s continued prominence in the technology industry.

Globe Telecom, Inc. (GLO)

Globe Telecom is one of the top telecom providers in the Philippines, offering internet, fixed-line, and mobile services. Due to the nation’s continuous digital transformation and rising internet penetration, Globe Telecom stands to gain from the growing demand for connections. Their efforts in digital platforms and 5G technologies will probably spur growth, making it a noteworthy stock to watch in 2024.

Comprehensive Evaluation and Tactical Alignment

Ayala Corporation (AC) Ayala’s success is primarily driven by its broad portfolio and strategic investments in renewable energy and infrastructure. Their emphasis on innovative city initiatives and sustainable development aligns with the country’s modernization and economic resiliency goals. In addition to distributing risk, this diverse strategy puts Ayala in a position to take advantage of several growth prospects in other industries.

Summit Holdings JG, Inc.

JG Summit can take advantage of cross-industry synergies because of its position in various sectors, including food production and airlines. Cebu Pacific’s revival and Universal Robina’s excellent success in the food sector ensure stable revenue streams. Their financial picture is further strengthened by advances in their petrochemical industry, which result from increased industrial activity.

The solid retail operations of SM Investments Corporation (SM), with its vast network of malls and stores, are well-positioned to gain from rising consumer spending. In addition, they are strategically addressing the growing demand for residential and commercial spaces by expanding into the property development industry through SM Prime Holdings. This dual emphasis on real estate and retail builds a solid basis for long-term growth.

Nvidia Corporation (NVDA)

Nvidia’s breakthroughs fuel its dominance in gaming and artificial intelligence. The Philippines offers a sizable market for Nvidia’s cutting-edge GPUs because of its expanding IT industry and rising use of AI solutions. Nvidia benefits from the growing trend of local businesses and government agencies investing more in digital infrastructure.

Globe Telecom (GLO)

For the Philippines to improve its digital economy, Globe must concentrate on growing its network infrastructure and digital services. Their ability to lead the rollout of 5G technology and enhance broadband services would enable them to meet the increasing demand for high-speed internet, establishing them as a significant participant in the telecoms industry.

In Summary

These equities provide Filipino investors with domestic and international investment prospects, balancing conventional industries like retail and real estate and cutting-edge technology. Using these investments to diversify your portfolio will help reduce risk and take advantage of several growing industries in 2024. Make sure your investing strategy is customized to your unique goals and risk tolerance by doing extensive research or speaking with a financial professional.

A multi-award-winning blogger and advocate for OFWs and investment literacy; recipient of the Mass Media Advocacy Award, Philippine Expat Blog Award, and Most Outstanding Balikbayan Award. Her first book, The Global Filipino Bloggers OFW Edition, was launched at the Philippine Embassy in Kuwait. A certified Registered Financial Planner of the Philippines specializing in the Stock Market. A recognized author of the National Book Development Board of the Philippines. Co-founder of Teachers Specialist Organization in Kuwait (TSOK) and Filipino Bloggers in Kuwait (FBK). An international member of writing and poetry. Published more than 10 books.  Read more: About DiaryNiGracia