Recommended PSE Stocks to Buy and Hold (March 2018)

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Which stocks are good to buy in the Philippine stock market?

It’s much better to do your own in-depth research and analysis to answer this question, but if you don’t have the time, then you might want to simply rely on model portfolios recommended by professional stock analysts.

A Model Portfolio is a selection of stocks developed with an investment goal in mind, and the good thing is that you can simply copy and follow them, leaving the analysis and portfolio rebalancing in the hands of full-time professionals whose job is to find undervalued companies in the stock market.

Stock research portal PinoyInvestor and brokerage company First Metro Securities offer a simpler way to choose good stocks by following any of the four (4) recommended stock portfolios targeted to four types of stock investors.

Model Portfolio #1: Riding the Momentum

This stock portfolio is for investors looking to invest in well-established companies with sustained profitability and high earnings expectations. This model portfolio is comprised of high-growth stocks with high Price-Earnings (P/E) ratio and quality Earnings per Share (EPS) growth.

For this week, the component-stocks in the “Riding the Momentum” Portfolio are five companies, namely:

  1. Wilcon Depot Inc. (WLCON)
  2. Jollibee Foods Corp. (JFC)
  3. Bloomberry Resorts Corp. (BLOOM)
  4. International Container Terminal Services Inc. (ICT)
  5. Ayala Land Inc. (ALI) – * Newly added this week **

ALI is a brand-new addition this week, replacing Robinsons Retail Holdings Inc. (RRHI) which was a recommended stock in this portfolio until last week. To see the updated stocks in this portfolio, view the premium Stock Picks and Model Portfolios report in PinoyInvestor.

Model Portfolio #2: Value Play

This model portfolio includes stocks that are undervalued by the market but able to provide high return to shareholders. If you’re looking for stocks with low Price-to-Book value but high Return on Equity (ROE), this model portfolio is for you.

The “Value Play” model portfolio is currently comprised of five select stocks belonging to the Utilities, Real Estate, and Conglomerates sector. (View all component stocks of this portfolio in the premium Stock Picks and Model Portfolios report.)

Model Portfolio #3: Yield Seekers

Are you looking for realizable, tangible, and recurring income from stocks? This model portfolio is for you if you’re into price appreciation, but more importantly, above-average dividend yields. The stocks in the “Yield Seekers” portfolio have high Dividend Yields and high Dividend Coverage Ratio (DCR).

It is currently composed of five stocks belonging to the Power and Telco industries. (View all component stocks of this portfolio in the premium Stock Picks and Model Portfolios report.)

Model Portfolio #4: Unloved

Finally, the “Unloved” stock portfolio includes stocks that could potentially generate high earnings but are currently underrated by the market. These stocks have high EPS growth and low Price-to-Earnings (P/E) ratio.

Five stocks are currently part of the Unloved portfolio, all of those belonging to the Conglomerates and Power sectors. (View all component stocks of this portfolio in the premium Stock Picks and Model Portfolios report.)

How to Use the Model Portfolio

Once you’ve chosen a model portfolio that suits your investing style, simply copy the component-stocks included in that portfolio. This means replicating the recommended grouping of stocks or, simply speaking, buying all stocks in that model portfolio.

You may choose to invest the same Peso amount for each stock or, alternatively, you may buy more or be overweight on one or two stocks, as long as you hold most, if not all, of the component stocks in your chosen model portfolio.

Interested to view all recommended Stock Portfolios? Visit this section on PinoyInvestor’s Stock Picks and Model Portfolios. Happy investing!

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About the Author

James Ryan Jonas teaches business strategy, investments, and entrepreneurship at the University of the Philippines (UP). He is also the Executive Director of UP Provident Fund Inc., managing and investing P3.1 Billion ($56 Million) worth of retirement funds on behalf of thousands of UP employees.

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