Singapore’s inflation is running at a 14-year peak and is expected to remain above 5% for the rest of the current year and well into 2023, as per the Monetary Authority of Singapore (MAS). Importantly, trade and finance are expected to take a hit owing to the slowing economic growth. As per the Ministry of Trade and Industry (MTI), Singapore’s GDP is expected to rise by 0.5% to 2.5% in 2023, much lower than the current year’s figure of 3.5%.
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Amid the weakening outlook for one of the most important financial hubs in Asia, we filtered through the TipRanks database to find two companies that have performed well despite the hardships and still command a Buy consensus rating from expert analysts. Let’s take a closer look at each of these companies.
Singapore Telecommunications Ltd. (SG:Z74)
Singapore Telecommunications Ltd., popularly known as SingTel, is one of the largest telecom operators and mobile service providers in Singapore. SingTel has major operations in Australia and Asian countries, including India and Indonesia. Year to date, Z74 stock has gained 19.2%.
Is Singtel Stock a Good Buy?
With eight unanimous Buys, SingTel stock has a Strong Buy consensus rating. On TipRanks, the average SingTel price target of S$3.15 implies 18.5% upside potential to current levels.
Moreover, SingTel pays a semi-annual dividend of S$0.05 per share, reflecting a yield of 4.38%. In its latest half-year financials (1H2023), SingTel even declared a special dividend of S$0.05 per share that will be paid in two parts along with its other dividend.
United Overseas Bank Limited (SG:U11)
United Overseas Bank, commonly known as UOB, is a multinational banking giant in Singapore. UOB offers a wide array of financial services, including commercial and corporate banking, personal finance, asset management, and Insurance services. Its operations span the Asia Pacific, Western Europe, and North America. Year to date, U11 stock has gained 19.2%.
What is the Target Price for UOB?
On TipRanks, the average United Overseas Bank price target of S$33.26 implies 8.8% upside potential from current levels. Also, analysts have a Strong Buy consensus rating on UOB stock based on four Buys and one Hold rating.
Furthermore, UOB pays a semi-annual dividend of S$0.60 per share, reflecting a yield of 3.89%. Remarkably, corporate insiders have a Positive signal on United Overseas Bank, as five insiders bought shares worth S$230,100 in the past three months.
Ending Thoughts
The prospects for Singapore’s economic growth outlook may be deteriorating, but the above companies are weathering the headwinds quite well currently. Additionally, the two companies have a wide moat in their specific sectors, are ranked among the top-performing companies, and pay rich dividends. Plus, analysts have a highly optimistic view of each of these companies’ stock trajectories, making for a very lucrative investment case.
