2 Beaten-Down Blue-Chip Stocks That May Become Future Stars

As of the end of August, most of the companies had reported their financial results.

During the earnings season, I was keeping a keen watch on three blue-chip companies that are part of the Straits Times Index (SGX: ^STI). While their performances in terms of stock price have not been strong, these firms could rise again in the years ahead.

Here are the reasons for my optimism on these companies broken down into three parts. For the first company, you can head here. The second company is discussed below.

Company #2: Singapore Press Holdings Limited (SGX: T39)

Singapore Press Holdings, or SPH for short, is Asia’s leading media organisation which publishes newspapers, magazines and books in both print and digital formats. It also has a property arm which owns 70% of retail-based real estate investment trust (REIT), SPH REIT (SGX: SK6U).

SPH’s business has been hit in recent times by popularity of digital news, and online advertisements. However, SPH is not giving up on its fight against these platforms.

For its third quarter ended 31 May 2018, SPH commented that its digital business is gaining traction, showing growing digital subscriptions and e-paper readership. SPH is also expanding its property and aged care portfolios to diversify its business. However, it’s early days, at the moment, for its digital and non-newspaper businesses.

If SPH is able to demonstrate strong earnings growth from its various initiatives, I may swayed into taking a second look at the company.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.