Equity
markets
have
had
a
good
start
to
the
year
with
themes
such
as
Big
Tech
continuing
to
reign
supreme
among
investors.
The
benchmark
S
&
P
500
Index
is
up
around
4%
year
to
date
after
a
24%
rise
in
2023.
However,
ongoing
political
tensions,
still-high
inflation
levels
and
uncertainty
over
when
the
U.S.
Federal
Reserve
will
cut
interest
rates
have
raised
questions
about
which
sectors
—
and
stocks
—
will
outperform
looking
ahead.
For
Kevin
Teng,
CEO
of
Wrise
Wealth
Management
Singapore,
which
serves
ultra-high-net-worth
individuals
across
Asia,
the
Middle
East
and
Europe,
three
top
stocks
stand
out
as
good
plays
right
now.
Microsoft
Top
on
Teng’s
list
is
Microsoft
.
A
member
of
the
so-called
Magnificent
Seven
—
along
with
Google
parent
Alphabet
,
Amazon
,
Apple
,
Meta
Platforms
,
Nvidia
and
Tesla
—
it
was
a
top-performing
stock
in
2023.
Microsoft
remains
a
favorite
for
Teng
this
year
as
it
is
“strategically
transforming
itself
amid
declining
PC
sales
[and]
focusing
on
cloud
computing
and
mobile
technology.”
“Despite
its
challenges
in
the
PC
segment,
Microsoft’s
Windows
operating
system
dominates
the
PC
market
globally
at
around
90%.
The
company
is
also
relying
on
robust
revenue
from
other
segments
like
Azure,
Office
365
and
Dynamic
CRM
to
boost
its
revenue,”
Teng,
who
was
previously
an
executive
director
of
private
wealth
management
at
Morgan
Stanley,
told
CNBC
Pro
on
Jan.
30.
Microsoft
last
week
reported
a
17.6%
year-over-year
increase
in
its
revenue
for
its
quarter
ending
Dec.
31.
Teng
noted
that
the
tech
giant’s
“diverse
software
applications
make
it
a
key
player
in
the
digital
transition,”
adding
that
its
strong
presence
in
cloud
infrastructure
and
ties
with
OpenAI
make
it
well-placed
to
meet
the
rising
demand
for
generative
AI.
Over
the
last
12
months,
shares
in
Microsoft
are
up
almost
60%.
Of
52
analysts
covering
the
stock,
48
give
it
a
buy
or
overweight
rating
at
an
average
price
of
$460.37,
according
to
FactSet
data.
This
gives
it
upside
potential
of
almost
12%.
ExxonMobil
In
the
energy
sector,
Teng
likes
oil
and
gas
giant
ExxonMobil
given
its
“visible
upstream
growth,
improved
downstream/chemicals
capacity,
long-term
potential
from
low-carbon
investments
and
strong
balance
sheet
supporting
higher
capital
returns.”
His
optimism
about
the
stock
comes
despite
mixed
sentiment
on
the
energy
sector
following
ongoing
geopolitical
uncertainties
and
fluctuating
oil
prices.
The
energy
giant
last
week
reported
quarterly
earnings
that
beat
analysts’
expectations,
but
profit
fell
compared
to
a
year
before
on
lower
oil
prices.
A
key
catalyst
Teng
sees
for
ExxonMobil
is
its
acquisition
of
Pioneer
Natural
Resources
in
an
all-stock
transaction,
valued
at
almost
$60
billion.
The
deal
is
expected
to
close
by
mid-2024.
Exxon
has
said
its
production
volume
in
the
Permian
Basin
located
in
West
Texas
and
New
Mexico
would
more
than
double
to
1.3
million
barrels
of
oil
equivalent
per
day once
the
deal
closes.
Other
opportunities
include
growth
prospects
from
the
company’s
discoveries
in
Guyana
between
2025
and
2026,
Teng
added.
Over
the
last
12
months,
shares
in
ExxonMobil
are
down
over
8%.
Of
29
analysts
covering
the
company,
19
have
a
buy
or
overweight
rating
on
the
stock
at
an
average
price
target
of
$124.94,
giving
it
upside
potential
of
around
22.5%,
according
to
FactSet
data.
Barrick
Gold
Beyond
tech
and
energy,
Teng
is
also
bullish
on
gold,
naming
Canadian
miner
Barrick
Gold
among
his
top
picks.
“We
hold
a
positive
outlook
on
gold
due
to
geopolitical
uncertainties,
making
it
a
reliable
safe
haven
investment
during
economic
challenges,”
he
explained.
Spot
gold
prices
are
up
around
7.5%
over
the
last
12
months.
“Despite
the
lag
in
performance
among
gold
miners
compared
to
the
rising
gold
prices
since
2023,
Barrick
Gold,
being
one
of
the
largest
gold
miners,
is
poised
to
benefit
from
the
expected
price
recovery,”
Teng
said.
He
is
expecting
a
“sequential
improvement”
in
the
company’s
output
following
the
expansion
in
its
production
of
copper
production
to
240,000
metric
tons
from
the
current
150,000
metric
tons
in
its
Lumwana
copper
mine
in
Zambia.
A
similar
boost
in
production
levels
is
also
expected
at
its
Reko
Diq
copper-gold
project
in
Pakistan,
Teng
said.
Barrick
Gold’s
expansion
plans
collectively
“positions
it
for
potential
growth
in
the
coming
year,”
he
added.
Shares
in
Barrick
Gold
are
down
over
15%
over
the
last
12
months.
Of
23
analysts
covering
the
company,
16
have
a
buy
or
overweight
rating
on
the
stock
at
an
average
price
target
of
29
Canadian
dollars
($21.52),
giving
it
upside
potential
of
almost
40%.
—
CNBC’s
Jordan
Novet
and
Fred
Imbert
contributed
to
this
report.
