Philippines: Strongest ‘Buy’ In Asia

Philippines

Watch the video with Andrew Stotz or read Watching the Street: Philippines below.

Consensus Recommendations: Philippines

Consensus recommendations in the Philippines have been trending upwards and the market now receives the strongest “buy” recommendation in Asia.

Learn more: How to Benefit from Our Watching the Street Charts

Among companies with the most positive recommendations, Megawide Construction is doing repair work among other things related to real estate and construction. Both Metro Pacific Investments and Alliance Global Group have exposure to these industries as well.

Among companies with the most negative ratings, JG Summit Holdings, Aboitiz Equity Venutures, LT Group and DMCI Holdings are all conglomerates spanning a large number of industries.

Consensus Earnings Estimates: Philippines

Consensus EPS growth estimates have been stable over the past five years, averaging about 11%. However, analysts were only fairly accurate in 2014.

Philippines

Jollibee Foods owns the fast food brand Jollibee that has been referred to as Asia’s McDonald’s, as well as being the franchisee of international brands such as Burger King.

Cebu Air has among the strongest recommendations but among the lowest consensus EPS growth estimates, and its share price has fallen by almost 25% in the past 3 months.

Consensus Target Prices: Philippines

Both the actual return and the estimated upside has been rather volatile in the Philippines. Analysts were only fairly accurate in 2013.

Philippines

Among those with the highest estimated target price upside, Alliance Global Group owns 64% of Megaworld and both of their shares have fallen by more than 20% YTD.

Companies with the lowest expected return have all seen their share prices go up by 20% or more YTD, except DMCI Holdings, which is down about 5%.

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About the Author

Dr. Andrew Stotz, CFA
Dr. Andrew Stotz, CFA is the CEO of A. Stotz Investment Research, a company providing institutional investors with ready-to- invest portfolios in Asia that aim to beat the benchmark through superior stock selection. The company also provides buy- and sell-side clients with financial models to value any company in the world and World Class Benchmarking to determine what companies are financially world class. Previously, as Head of Research at CLSA, Andrew was voted No. 1 Analyst in Thailand in the Asiamoney Brokers Polls for 2008 and 2009. He was also voted No. 1 Analyst in Thailand in the 2009 Institutional Investor magazine All-Asia Research Team Report. Andrew earned his PhD in finance at the University of Science and Technology of China in Anhui province, with a focus on answering questions raised by fund managers and analysts during his career about picking stocks and managing portfolios. In addition, Andrew has been a lecturer in finance for 22 years at various universities in Thailand. Since 2013, he has been the president of the CFA Society of Thailand. He is also the author of How to Start Building Your Wealth Investing in the Stock Market.

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