Super-rich wealth manager lists three stocks to buy before year-end | Wilnesh News
Stocks have risen this year, with investors remaining bullish on big technology companies but also buying shares of lower-profile companies. However, ongoing political tensions and macroeconomic uncertainty have raised questions about which sectors and stocks will outperform for the rest of the year. CNBC Pro spoke with Wrise Private Singapore CEO Kevin Teng to get his take on the stocks he was bullish on at the start of the year and what to bet on before the end of the year. The wealth manager, which serves ultra-high-net-worth individuals in Asia, the Middle East and Europe, named tech giant Microsoft, oil and gas giant Exxon Mobil and Canadian miner Barrick Gold as top picks at the start of the year. Months later, he still likes these three stocks. Shares of Exxon Mobil are up 16.7% so far this year, while Barrick and Microsoft are up about 10.8% and 15%, respectively. Exxon and Barrick Gent still described Exxon as a “promising opportunity” but warned investors to “seek more favorable entry points going forward” as the stock has been falling over the past few weeks. He also noted that Barrick Gold “remains one of the best stocks to drive gold’s continued rise,” and said that given the market consensus on gold’s current positioning, investors should now “consider cutting positions and taking profits.” Microsoft Teng remains bullish on Microsoft despite Wrise making a “partial shift” in early August and reducing its weight in the tech giant while increasing its allocation to Nvidia. Microsoft and Nvidia are among the so-called Big Seven stocks, which also include Alphabet, Amazon, Apple, Meta Platforms and Tesla. “We recognized that (Microsoft) was relatively underperforming compared to the Big Seven, so we made some shifts to take advantage of the pullback,” Teng explained. He’s betting on Microsoft now, given its “strong monopoly on PC operating systems and productivity software.” “Through its existing partnership with OpenAI, it will also be able to capitalize on the growing demand for generative artificial intelligence,” Teng added. His comments came as Microsoft’s fiscal first-quarter results beat Wall Street expectations, with earnings per share of $3.30, compared with expectations of $3.10, and revenue of $65.59 billion, compared with expectations of $64.51 billion. The tech giant provided revenue guidance for the current quarter of $68.1 billion to $69.1 billion, below analysts’ expectations of $69.83 billion. However, like Teng, most analysts remain optimistic about the technology giant, with 53 of 58 analysts covering the stock offering buy or overweight ratings and an average price target of $496.66, according to FactSet data . This gives the stock an upside potential of 14.8%. Nike Athletic footwear and apparel brand Nike is another stock Teng likes, despite Wall Street’s pessimistic sentiment. Nike recently announced that it expects revenue to fall 8% to 10% this quarter, lower than analysts’ expectations of 6.9%. Nike’s stock price has been falling, down nearly 30% since the beginning of the year. “Right now, Nike looks a little oversold because of the bearish sentiment,” Teng admitted. However, he described it as an “attractive investment opportunity” due to its “leading market position, strong brand equity and strategic initiatives aimed at long-term growth”. Data from the consulting firm AlixPartners Consumer Confidence Index shows that Nike is the most active shoe retailer among respondents of all age groups. Of the 37 analysts covering the stock, 18 have buy or overweight ratings, 17 have hold ratings and two have sell ratings, according to FactSet data. Analysts have an average price target of $90.62 on the stock, which represents an upside potential of 18.5%. Walt Disney Also on Deng’s list of hot stocks is Walt Disney, the home of Mickey Mouse, streaming platform Disney Plus and film producer Marvel Studios, among others The company behind the brand. The stock “appears attractive at its current valuation due to its cost-cutting plans and focus on streaming services,” he said. “Disney+’s user base is growing rapidly as its content proves popular with consumers and its streaming profits should grow significantly in the fourth quarter and into 2025,” the wealth manager added. Disney-owned Pixar Animation Studios It laid off 14% of its workforce earlier this year to cut costs. The company’s other businesses began laying off employees last year as it prioritized quality over quantity of content. Disney shares are up 5.3% year to date. FactSet data shows that 23 of 33 analysts covering the stock have given it a buy or overweight rating, with an average price of $110.20. This gives it an upside potential of 15.9%.
