As we step into the second half of the year, it is the perfect time to explore new investment horizons. This July, we have handpicked the top 5 Singapore stocks that stand out in their potential to innovate and grow. From the surging demand for renewable energy to the burgeoning tourism sector, we believe that this selection of stocks will provide you a diversified and resilient growth.
Let’s dive into these top 5 Singapore stocks to buy in July this year.
1. SingTel
Singapore Telecommunications Ltd (SGX: Z74), commonly known as Singtel, is a major player in the telecommunications sector. After gaining about 11% in June, it continues to be a top pick with a target price of S$3.30, indicating a potential 16.2% increase. SingTel is expanding its operations in data centres and improving its core earnings, which positions it for future success. With strategies to enhance its earnings before interest and tax (EBIT) and efforts to increase dividends through profitable divestitures, SingTel offers a solid opportunity for investors interested in a company with strong growth prospects and strategic market initiatives.
2. Genting Singapore
Genting Singapore Ltd (SGX: G13) operates in the leisure and tourism industry, primarily known for its casino operations. Despite a recent dip in its share price, it remains a top pick due to its promising outlook bolstered by the tourism sector’s recovery. The company is broadening its focus beyond gaming with expansions into non-gaming areas and new attractions like Minion Land and the Singapore Oceanarium. Trading below its five-year average in terms of EV/EBITDA and with an average target price suggesting a 35.6% upside, Genting Singapore presents a valuable entry point for investors looking to benefit from its revenue diversification and enhanced visitor engagement.
3. Sembcorp Industries
Sembcorp Industries Ltd (SGX: U96), a leading energy and urban development provider, presents an attractive investment opportunity in the renewable energy sector, despite its recent share price pullback. Kicking off 2024 with a strong performance, the company achieved a substantial increase in its adjusted EBITDA to S$369.5 million for the first quarter, capturing 32.2% of its annual target. As Singapore’s largest provider of renewable energy, Sembcorp is well-placed to capitalize on the surging demand for cleaner energy sources. This is underscored by significant agreements such as the 10MW power purchase agreements with GSK and a 75MWp deal with Equinix for its data centers. Trading at a modest 9 times the projected earnings for 2025 and with a potential upside of 41.1% to a target price of S$7.01, Sembcorp offers a compelling buy for investors eager to leverage the long-term growth potential of the renewable energy market.
4. ComfortDelGro
ComfortDelGro Corporation Ltd (SGX: C52), recognized as Singapore’s leading public transportation provider, is increasingly drawing investor attention. Despite a slow start in early 2024, the company has demonstrated a strong financial trajectory, particularly with a projected significant growth in profits for the second quarter. ComfortDelGro is capitalizing on extensive new bus tender opportunities in the UK following the Labour Party’s election win, which could increase its earnings significantly over the next five years. These developments make ComfortDelGro an appealing option for investors looking to benefit from sustainable urban transportation growth and robust dividend yields. With an attractive target price indicating substantial upside potential, this company offers a promising investment in a crucial and expanding industry.
5. CapitaLand Ascendas REIT
CapitaLand Ascendas REIT (SGX: A17U) or CLAR, stands out as a prime investment opportunity, especially for those looking to invest in REITs with a diversified industrial and logistics portfolio. With properties across Singapore, Australia, and the U.S., including industrial spaces and data centers, CLAR showcases a robust first-quarter performance in 2024, with a strong 16.9% rental reversion. This indicates not only stable but growing income potential. Its strategic focus on sectors poised for growth and a firm commitment to sustainability practices make it an appealing investment. Offering a potential 20% upside with a target price of S$3.06 and high ESG standards, CLAR is ideal for investors aiming to combine growth with sustainability in their portfolio.
Seize the moment to invest in high-growth potential stocks at fair value
Don’t miss your chance to capitalize on these top-tier investment opportunities in one of the world’s most dynamic markets. Whether you are drawn to the innovative strides of SingTel, the expansive potential of Genting Singapore, the green energy revolution with Sembcorp, the reliable dividends of ComfortDelGro, or the strategic growth of CapitaLand Ascendas REIT, now is the time to act. While mindful of the inherent risks and potential market volatility, these stocks are well-suited for long-term investors seeking to build sustainable wealth. Invest wisely and watch your portfolio transform with these standout performers.
Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of the companies mentioned.
