Financial Adviser: 5 Best Performing Blue-Chip Stocks in 2025 and How to Profit from Them

As the year draws to a close, the Philippine stock market is showing signs of life but still carries the scars of a long bear cycle. Inflation has eased from its earlier spikes, yet overall sentiment remains distinctly negative.

Investors are still hesitant because interest rates, while no longer rising, remain high enough to keep money trapped in deposits and fixed-income instruments. At the same time, political instability at home such as corruption allegations, public protests, and a growing sense of policy drift has created fresh uncertainty about the country’s direction.

Add to this the lingering worries about global growth, geopolitics, and volatile foreign investor flows, and the result is a market that looks cheap on traditional valuation metrics but continues to trade as if investors expect more trouble ahead.

In this environment, even in a very difficult market, the market still produces its own set of winners. Even during a broad downtrend, a handful of stocks manages to outperform because of company-specific catalysts, sector rotations, or simple mean reversion. This pattern repeats every year that no matter how weak the overall index becomes, there are always standout performers.

However, we have also have to accept that while every difficult year still manages to produce its own set of winners, not all winners stay winners the following year. Leadership in the Philippine market rotates sharply. A stock that soars one year can cool off or even decline the next, while names that were ignored or beaten down sometimes become the new outperformers. Studying these rotations gives better context for determining which current winners may still have momentum and which ones may have already peaked.

If we look at last year’s winners, we find that Converge (PSE: CNVRG), ICTSI (PSE:ICT), Metrobank (PSE: MBT), BPI (PSE: BPI), and Globe (PSE: GLO) dominated the blue-chip leaderboard. Converge surged by +100.2 percent, ICTSI climbed +66.1 percent, Metrobank advanced +57.9 percent, BPI added around +32 percent, and Globe gained +31.3 percent.

But the story looks very different today. Out of last year’s five biggest winners, only one continues to advance meaningfully, while four have slipped into negative territory. ICT is the only stock that remains in positive territory, although even its performance has cooled, with gains moderating to year-to-date gain of 40.5 percent.

MBT has fallen back into the red and is now down 8.33 percent. BPI is trading at -4.51 percent so far this year. GLO shows the sharpest reversal of the group, losing  -26.65 percent to P1,602.00 after its solid gains the year before. CNVRG, despite doubling last year, now trades slightly lower and is down about -3.35 percent year-to-date.

Taken together, these shifts reinforce the idea that last year’s biggest winners rarely dominate the following year in the same way. Some manage to hold on to a portion of their gains, others slow considerably, and a few reverse sharply.

This rotation is a normal and recurring feature of the Philippine market and a clear reminder that relying on past performance alone can be misleading, especially when sentiment remains fragile and leadership often changes without warning.

For the first 11 months of 2025, let’s take a look at the performance of the five biggest blue-chip winners to date and how to profit from them:

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Price P15.06  

Year-to-date gain +43.4 percent

LT Group (PSE: LTG) is the holding company of business tycoon Lucio Tan, who owns 100 percent of Tanduay, the third-largest distilled spirits producer in the country with 25 percent market share, and 100 percent of Asia Brewery Incorporated.

LTG also owns an indirect stake of 49.6 percent in Philip Morris Fortune Tobacco, the leading tobacco manufacturer with a 67 percent market share; 56.5 percent in Philippine National Bank (PNB); and 100 percent of Eton Properties.

LTG's total revenues—about half of which come from PNB, with the balance from Tanduay and Asia Brewery—have been growing by 7.6 percent annually for the past 10 years, from P55.4 billion in 2013 to P115 billion in 2023. This growth in revenues translated to 11.3 percent annual growth in net income to P25.2 billion from only P8.7 billion in 2013.

Last year, LTG delivered solid results as total revenue rose 11.8 percent to P128.97 billion, driven mainly by a 12.8-percent increase in its banking segment and a 13-percent rise in distilled spirits, while beverages posted a modest 4.7-percent gain.

With operating expenses largely flat at P39.45 billion, operating income climbed 10.4 percent to P35.65 billion, which resulted in a 13.2-percent growth in net income to P38.51 billion from P34.02 billion in 2023.

For the first nine months of 2025, LTG delivered stronger topline performance with consolidated revenue rising 3.7 percent to P98.65 billion from P95.16 billion, driven mainly by the banking segment which grew 5.8 percent to P58.75 billion.

Distilled spirits posted a 2.0 percent increase to P25.04 billion, while beverage revenues dipped 2.2 percent to P12.71 billion. Property development recorded a 2.3 percent rise to P2.16 billion. This revenue growth resulted in net income of P30.84 billion, up 15.6 percent from P26.67 billion.

Despite the appreciation in its share price, LTG’s remains deeply undervalued by every major metric. The stock still trades at only 5.15× P/E, far below the Philippine large-cap average of 10–12×, which shows that the market continues to price LTG at a heavy discount despite improving earnings.

Its Price-to-Sales ratio of 1.23× also stays at the low end of the sector, which reflects how conservatively investors value its strong banking and consumer businesses. More importantly, LTG trades at just 0.66× Price-to-Book, which means the market values the company below the worth of its net assets.

If the stock were priced correctly at typical market valuations, LTG should be trading closer to P18 at an 8× P/E, around P22 at a 10× P/E, and as high as P26 at a fair market multiple of 12×. These implied values show that even after its share price gains, LTG still carries a 40-60% discount to its fair value, which should warrant a re-rating once sentiment normalizes.

LTG’s price chart continues to reflect a strong bullish structure when viewed through wave analysis. The powerful rally from mid-2024 to early 2025 carries the clear signature of a Wave 3 extension which is long, impulsive, and supported by shallow pullbacks.

The stock is now moving inside a tight consolidation between P14.20 and P15.20, which aligns with a typical Wave 4 pause as the market absorbs earlier gains.

As long as LTG stays above the key supports at P14.20 and P13.80, the broader uptrend remains fully intact. This consolidation phase looks healthy rather than corrective, suggesting that a Wave 5 advance is forming.

Under this scenario, the next upside targets based on price geometric resistance zones fall between P16.00 and P17.00, with a possible extension toward P18.20 if momentum strengthens.

A breakout above P15.30 would confirm the start of Wave 5, while only a drop below P13.80 would signal a deeper correction. Overall, LTG remains positioned for another leg higher once this consolidation resolves.

Price: P542.50

Year to date gain +40.54 percent

International Container Terminal Services, Inc. (PSE: ICT) is a leading global operator of common-user container terminals, specializing in the management, development, and acquisition of port infrastructure across emerging and developed markets.

Recognized as one of the Philippines’ most successful multinational companies, ICT has built a strong global presence by focusing on high-potential terminals with annual throughputs ranging from 50,000 to 3.5 million twenty-foot equivalent units (TEUs).

As of March 2025, ICT manages a total of 32 terminal operations in 19 countries, spanning key trade corridors across Asia, the Americas, Africa, Europe, and the Pacific. In the Philippines, it operates 10 terminals, including inland and barge terminals, as well as integrated port facilities in Subic.

Last year, ICT posted solid topline expansion as gross revenues from port operations rose 14.7 percent to $2.74 billion from $2.39 billion, driven by higher volumes, expanded operations, and better pricing.

Despite the growth in activity, total operating costs fell 4.1 percent to $1.66 billion from $1.73 billion, which reflected stronger cost discipline. These efficiencies, combined with stronger revenue performance, pushed net income up 61 percent to $935.78 million from $581.13 million.

This year, ICTSI delivered solid top-line and bottom-line growth for the nine-month period, with gross revenues from port operations rising 16.1 percent to $2.34 billion from $2.01 billion driven by stronger throughput and higher tariff contributions.

This translated into higher net income which climbed 18.8 percent to US$751.56 million, up from US$632.58 million in the same period last year. The earnings acceleration outpaced revenue growth, which indicates expanding margins supported by disciplined cost management and improved operational efficiency across terminals.

Based on trailing 12-month (TTM) metrics, ICT trades at a P/E of 19.65×, which is above its long-term historical range of 10–18×. Although not stretched to extremes, this level places ICT firmly in the upper band of its earnings valuation history. This multiple signals that the market is assigning a premium to ICT’s recent earnings growth and operational resilience.

If we look at the other multiples, they also tell the same story. ICT trades at 6.09× Price-to-Sales, well above typical historical norms near 3–4×, indicating that investors are paying twice the revenue multiple of earlier cycles.

ICT’s Price-to-Book ratio at 10.13× is extremely high relative to both its own past and the regional port industry. Meanwhile, cash-flow valuations such as 13.57× P/CF and 37.67× P/FCF are far above global port operator averages of 8–12× P/CF and 10–15× P/FCF.

Compared with regional peers, ICT trades at a clear premium. Operators like Westports (Malaysia), DP World (UAE), Hutchison Ports (Hong Kong), and PSA (Singapore) generally sit between 12–17× TTM P/E, 1–3× P/S, and 1.5–5× P/B, which are all far below ICT’s pricing levels. ICT’s superior margins and growth profile justify some premium, but the valuation gap is now wider than usual.

Based strictly pricing multiples, ICT is relatively overvalued to its historical averages and significantly more expensive than other major port operators in the region.

ICT’s price chart shows a mature uptrend that now appears to be completing a full Wave cycle, with price behavior consistent with the final stages of Wave 5. The strong multi-year advance from 2023 to 2025 reflects a classic Wave 3 surge, followed by a deep and volatile Wave 4 correction into the mid-P300s.

The subsequent breakout toward the P560 region aligns with a Wave 5 rally, but the recent price action, which are shorter candles, sharper rejections, and increased volatility near the highs, suggests that momentum is weakening.

From a price geometry perspective, the stock is pressing against major resistance in the P600 zone, which corresponds to key 1×1 and 2×1 extension levels, while immediate supports sit at P520 and P480, the latter marking the prior Wave 4 top.

Unless ICT can break convincingly above P600 with strong volume, the technical structure favors a near-term correction rather than a continued impulsive advance, which could make a pullback toward P520 or even P480 the more probable next phase.

Price: P42.00

Year-to-ate +36.14 percent

Puregold Price Club, Inc. (PSE: PGOLD) is one of the Philippines’ largest supermarket chains, operating a nationwide network of Puregold stores, S&R Membership Shopping warehouses, and S&R New York Style quick-service restaurants.

The company’s core business focuses on modern retailing, with revenues primarily driven by its extensive supermarket operations, which serve a mix of household consumers and resellers known as “Tindahan ni Aling Puring” partners.

PGOLD’s retail format remains its biggest contributor, while the S&R segment adds a significant share through its membership-based warehouse clubs and growing food service business.

Last year, PGOLD delivered solid revenue and earnings growth, with net sales rising 10.1 percent to P219.17 billion from P199.03 billion in 2023, which reflected stronger consumer demand and continued expansion of its retail footprint.

This topline improvement lifted gross income to P39.50 billion, up from P35.41 billion, while total gross income including other revenue increased to P43.01 billion from P38.69 billion. Higher revenues flowed through to operating profits, with income from operations climbing to P15.20 billion, compared to P13.35 billion the prior year.

After accounting for interest, foreign exchange gains, and other items, income before tax reached P13.44 billion, up from P11.21 billion in 2023. This resulted in net income of P10.42 billion, representing a robust 21.3 percent increase from P8.60 billion a year earlier.

This year, PGOLD delivered solid results for the first nine months of 2025, with net sales rising 10.6 percent to P168.08 billion from P151.98 billion in the same period last year.

As a result, PGOLD’s net income increased 5.6 percent to P7.30 billion from P6.91 billion in 2024, supported by higher gross income and stable contribution from other revenue streams.

PGOLD currently trades at 12-month trailing P/E of 11.13×, which is below its long-term historical range of 13–18×. This places the stock at a noticeable discount relative to its usual valuation band, which implies the market is pricing Puregold more cheaply despite its consistent earnings profile.

PGOLD’s Price-to-Sales ratio of 0.51× is also significantly lower than historical levels near 0.70–0.90×, which shows that the stock trades at barely half of annual revenue. This is rare for a dominant national retailer with stable volume and a widely scaled store network.

Balance sheet valuations tell the same story. PGOLD’s Price-to-Book of 1.22× and Price-to-Tangible Book of 1.54× both sit below typical retail industry benchmarks of 2–3× and are also beneath the company’s own historical averages.

Meanwhile, cash-flow valuations appear attractive: a Price-to-Cash Flow of 6.98× and Price-to-FCF TTM of 11.96× are inexpensive compared to global grocery peers such as Dairy Farm, CP All, or Aeon, which often trade at 10–15× cash flow.

If the stock were valued at its historical mid-cycle average of 16× earnings, PGOLD should be trading 44 percent higher than its current level. PGOLD’s fair value range lands between P46 and P55 per share, with P50 as the midpoint fair price.

PGOLD’s price structure shows a textbook impulsive Wave advance beginning in early 2025, followed by a deep corrective phase, and is now shaping what appears to be the early stages of a new upward wave.

The strong rally from P30 to the P45 region reflects a classic Wave 3, characterized by steep momentum and minimal retracement. The subsequent drop to the P36 zone displays the overlapping, choppy behavior typical of a Wave 4 correction, where price retraced nearly 38.2% of the Wave 3 move, which is consistent with standard wave patterns.

With the price now recovering back toward the low P40s, PGOLD appears to be transitioning into an early Wave 5 attempt, though still subject to confirmation. The key signal for Wave 5 activation is a decisive breakout above P44.00, which would open the path toward the previous high near P46 and potentially extend to P48.

From a price geometry perspective, the chart is respecting clear cyclical levels. The recent low at P36 sits exactly on a 1×1 support angle from the mid-2024 base, which signaled a strong foundation for the next leg higher.

Overall, PGOLD’s chart is improving, with wave and geometric price signals both indicating the possibility of a developing Wave 5, provided the stock clears the P44.00 resistance zone with conviction.

A breakout would confirm acceleration toward P59, while failure to hold above P39.50 risks sending the stock back into an extended corrective cycle.

Price:  P591.5  

Year-to-date +21.21 percent

Meralco (PSE: MER) stands as the largest electric distribution utility in the Philippines, operating a 9,685-square-kilometer franchise area that covers Metro Manila, Bulacan, Cavite, Rizal, and parts of Batangas, Laguna, Pampanga, and Quezon.

Backed by a soon-to-be-renewed 25-year congressional franchise, the company delivers electricity to a broad customer base where residential, commercial, and industrial users account for roughly 36 percent, 38 percent, and 26 percent of total kilowatt-hour sales, respectively.

As the dominant player in the country’s power distribution sector, MER manages a massive network that includes 151 substations with 22,577 MVA capacity, more than 20,000 circuit-kms of primary lines, and over 230,000 distribution transformers.

Beyond distribution, MER has expanded into power generation through MGen, which holds stakes in coal, LNG, and large-scale solar projects—including the 3,500-MW SPNEC development, solidifying its presence across the energy value chain.

Last year, MER delivered steady top-line and bottom-line growth, with consolidated revenues rising 6 percent to P470.36 billion from P443.61 billion in 2023, driven primarily by higher electricity volumes sold by the distribution utility and an increase in pass-through transmission charges.

This revenue expansion filtered directly into profitability, as net income attributable to equity holders climbed 21 percent to P45.86 billion from P38.02 billion the previous year.

This year, MER delivered steady top-line expansion in the first nine months of 2025, with net sales rising 10.6 percent to P168.08 billion from P151.98 billion in the same period last year.

Gross income also improved meaningfully, supported by both higher sales and a 9.9 percent increase in other revenue. Despite continued pressure from rising operating expenses and higher interest charges during the period, MER still achieved bottom-line growth, posting a net income of P7.30 billion, up 5.6 percent from P6.91 billion in 2024.

Based on 12 month trailing figures, MER trades at a P/E of 13.63×, which sits slightly below its historical average range of 14×. This places the stock at a mild discount relative to its long-term earnings valuation band.

Compared to global and regional electric utilities, which typically trade at 15–22× P/E due to stable, regulated cash flows, MER also registers marginally cheaper. Its Price-to-Sales ratio of 1.37× is consistent with its historical range but remains modest relative to utilities in markets like Malaysia, Thailand, and Indonesia, where P/S ratios often fall between 1.5× and 2.5×.

Balance sheet–driven valuations, however, show the company trading at a premium. The Price-to-Book ratio of 4.03× and Price-to-Tangible Book of 5.33× are elevated versus regional utilities, which usually trade at 1.0× to 2.5× P/B. Yet this higher multiple is typical for MER historically because regulated distribution businesses generate strong returns on equity, allowing markets to consistently price the stock above its book value.

When viewed holistically, MER’s pricing multiples point to a stock that is fairly valued to slightly undervalued, particularly when judged by its P/E metrics.

MER’s long-term chart shows a powerful multi-year impulsive structure that now appears to be entering the late stages of a major Wave cycle. The steep rally from the P300 zone to recent highs near P630 reflects the characteristics of a Wave 3 extension, which is long, vertical, and supported by minimal corrective pauses.

The earlier consolidation between 2018 and 2023 formed a massive multi-year base, acting as the Wave 2 accumulation zone. The recent sharp pullback from P630 down toward the mid-P560s resembles a classic Wave 4 reaction, as the market digests the strongest leg of the advance and volatility rises after a long impulsive move.

If this structure holds, MER may be preparing for a Wave 5 attempt, but Wave 5 in utilities tends to be shorter and less aggressive than Wave 3, which suggests a more moderate trajectory. The key confirmation level for Wave 5 is a clean breakout above P630, which would open targets toward P680 and eventually, P870 as the next Fibonacci and structural resistance zones.

Price geometry levels support the idea that MER is at a critical juncture. The long-term uptrend has respected the 1×1 angle rising from the 2020 low, and the recent peak aligns with a natural resistance cluster around P635.

The current consolidation sits precisely at the 1×2 support angle, making P560 a major area that must hold for the bullish cycle to continue. A breakdown below P560 would suggest that Wave 4 is not yet finished and may extend deeper toward the P520 Gann cycle support.

Conversely, if the stock stabilizes above the current support and reclaims P600 with volume, it would strengthen the probability of a Wave 5 move toward the mid-P600s.

Price: P42.40  

Year-to-date: +11.73 percent

AREIT, Inc. (PSE: AREIT) is the Philippines’ first publicly listed Real Estate Investment Trust (REIT), established to give investors direct access to a growing portfolio of prime, income-generating commercial properties.

AREIT’s assets consist of high-quality office buildings and estate-integrated developments located in key business districts such as Makati, Bonifacio Global City, Cebu, and Laguna, all backed by long-term leases with strong tenant covenants.

As part of the Ayala Group, AREIT benefits from a pipeline of property infusions and a track record of stable occupancy, making it one of the most reliable yield-generating vehicles in the market.

Last year, AREIT delivered another year of strong growth with total revenues climbing 43.7 percent to P10.26 billion from P7.14 billion in 2023, driven by broad-based increases across rental income (+39 percent), dues (+22.7 percent), and interest income from finance lease receivables (+157.7 percent).

This expanding top line reflects both the continued infusion of high-quality assets and sustained high occupancy levels across its portfolio. The surge in revenues flowed directly into profitability, pushing net income up 45.4 percent to P7.32 billion, compared with P5.03 billion the previous year.

This year, AREIT sustained strong growth in the first nine months of 2025, with total revenues climbing 33.6 percent to P9.51 billion from P7.12 billion in the same period last year.

Rental income rose 25.5 percent to P6.58 billion, supported by continuous asset infusions and stable occupancy, while dues increased 28.9 percent to P1.42 billion. The biggest jump came from interest income from finance lease receivables, which surged 94.9 percent to P1.51 billion. This robust top-line performance translated into stronger profitability, which increased net income to P6.73 billion, up 39.6 percent from P4.82 billion a year earlier.

At P42.40 per share, AREIT screens as undervalued across all major REIT valuation metrics, with most methods pointing to a fair value in the P48 to P56 range. On earnings and cash flow, the stock trades at just 13.25× P/E and 14× FFO, both below the typical Philippine and Singapore REIT range of 14× to 18×, which suggests at least a 10 to 20 percent discount versus peers.

NAV-based valuation also indicates upside, with AREIT’s implied price relative to net asset value placing fair value between P46 and P53, consistent with the premium usually awarded to Grade A, fully occupied office portfolios.

Dividend valuation reinforces this view: using AREIT’s projected dividend of P2.60 per share and applying standard REIT yields of 5.8 percent, the stock’s fair value falls between P44.80.

The strongest signal comes from the implied cap rate. AREIT’s current valuation reflects a 9.7 percent cap rate, far above the 6.5–8 percent range common for premium Philippine office properties. If we normalize this to a fair 7.5 percent cap rate, we will get a valuation equivalent to P56 per share.

AREIT’s long-term price structure shows a completed major Wave cycle from its 2020 IPO low through the sharp rally toward P54 in 2022, which represents the peak of a large Wave 3 advance.

This was followed by a deep, multi-year Wave 4 correction, unfolding from late 2022 through 2024, characterized by broad sideways-to-down consolidation between P28 and P40. The long base formation during this period absorbed the excesses of the earlier advance and reset technical conditions.

The strong rally from P30 in 2024 up to P46 in 2025 appears to be the early stage of a new impulsive structure, which suggests that AREIT has already begun forming Wave 1 and Wave 2 of a new cycle. The latest pullback from P46 down toward P42 fits the profile of a Wave 2 retracement, with price finding support near the 0.382–0.50 Fibonacci zone which is a healthy correction for a developing uptrend.

If this structure holds, a breakout above P46 would confirm the start of Wave 3, which typically becomes the strongest and longest leg. Based on Fibonacci projections, a clean Wave 3 extension would target P54, while a full Wave cycle could push toward P60.

Henry Ong, RFP, is an entrepreneur, financial planning advocate and business advisor. Email Henry for business advice hong@financialadviser.ph or follow him on Twitter @henryong888