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

The year is almost over, yet the stock market continues to show little meaningful progress. Persistent uncertainties still dominate the landscape as global growth concerns, elevated borrowing costs and political tensions dampen investor confidence.

These pressures keep sentiment cautious and contribute to the market’s lethargic behavior. The PSE Index reflects this hesitation. From its January level of about 6,550, the index now trades near 6,022 after falling to a fresh multi-year low around 5,580. Daily value turnover stays weak, a sign that investors remain defensive and prefer to keep their funds in fixed income while waiting for clearer signals of economic stability.

The downtrend in the index mirrors expectations of slower activity ahead. Inflation may have eased, but interest rates remain high enough to discourage risk-taking. Concerns about global recession also weigh on both consumer and business sentiment. These conditions keep the local market on the back foot and raise uncertainty over the timing of a durable recovery.

Although the market shows occasional rallies when inflation softens or when the possibility of future rate cuts emerges, sentiment remains fragile. Valuations look attractive on paper. Based on various methods and sources, the overall market trades at roughly median of 10 times earnings, well below the longer-term average of 16 times.

Valuations this low typically offer long-term opportunity. However, in the current environment, cheap does not automatically translate into upside. When caution dominates, pricing multiples can still compress further before confidence returns.

One way to deal with this kind of market is to search for potential value opportunities among stocks that suffered the sharpest declines in the previous year. The logic is straightforward. Heavy selling often results from a mix of weak sentiment, index adjustments and forced liquidation.

When these pressures subside, the same stocks sometimes deliver meaningful rebounds. However, history shows that recovery is not guaranteed. Some stocks stabilize quickly, while others continue to slide if their challenges persist.

The experience of last year’s biggest blue-chip losers illustrates this point. At the end of 2024, the steepest declines came from Nickel Asia (PSE: NIKL) (-45.8 percent), Bloomberry (PSE: BLOOM) (-44.3 percent), JG Summit (PSE: JGS) (-42.2 percent), Wilcon Depot (PSE: WLCON) (-37.8 percent) and Universal Robina (PSE: URC) (-29.8 percent).

Three of these stocks, NIKL, BLOOM and WLCON, also lost their place in the PSE Index, which intensified selling pressure as index funds exited their positions.

This year’s results show a mixed picture. NIKL now trades at year-to-gain of about +4.6 percent. JGS has also managed a reversal, with year-to-date gain of +6.08 percent.

These recoveries do not erase last year’s steep losses, but they demonstrate that heavy selling can create opportunities once the market resets expectations.

The other three names continue to struggle. BLOOM remains down by about -37.8 percent. WLCON drops even further with -50.49 year-to-date loss while URC also stays in negative territory with a year-to-date decline of about -20.3 percent.

The contrast between these results reinforces an important lesson. Looking at the worst-performing stocks can reveal potential bargains, but not all losers deserve the same treatment. Some declines exaggerate short-term fears and eventually correct once fundamentals stabilize. Others signal deeper issues that require more time to resolve. The discipline lies in recognizing which is which.

With the PSE Index still near the lower end of its multi-year range and valuations approaching historical bottoms, investors may find opportunities among oversold names. Not all beaten-down stocks recover, but those that do often deliver substantial gains once sentiment turns.

Here are the five worst-performing blue-chip stocks for 2025 in the PSE and how to profit from them:

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Price: P2.51 

Year-to-date loss:  -37.25 percent

AC Energy (PSE: ACEN) is one of the largest listed renewable energy companies in Southeast Asia with a total net attributable capacity of 4,000 MW. About 40 percent of its total capacity is contributed by its operations in the Philippines while the balance of 60 percent is shared by Vietnam, Indonesia, India, and Australia.

ACEN, which sources its renewable energy mainly from solar and wind power, currently operates about 68 percent of its total capacity, while 32 percent is still under construction.

Last year, ACEN delivered modest top-line growth as total revenues inched up by 2.2 percent to P37.3 billion, supported by higher other revenues and the return of dividend income even as electricity sales remained flat. The more meaningful improvement came from the cost side, where total cost of sales fell by 13.8 percent due to lower power purchase and fuel expenses, allowing gross profit to more than double and pushing gross margin up from 13.1 percent to 26.7 percent.

These efficiency gains lifted profitability, with income before tax rising 16.6 percent and net income climbing 11 percent to P10.1 billion in 2024.

However, this year, ACEN’s financial results show a sharp deterioration in both revenues and earnings as the company moves through a difficult phase marked by weaker electricity sales, higher operating costs and substantial one-off charges.

For the first nine months of 2025, electricity revenues amounted to P22.34 billion, down from P27.62 billion last year. This 19-percent drop reflects softer market prices, lower generation volumes and the impact of regulatory setbacks in overseas markets such as Vietnam and Australia.

The decline also mirrors the absence of contribution from divested thermal assets, which previously provided stability to the revenue base. Total revenues fell to P22.99 billion from P28.08 billion, underscoring a meaningful contraction in ACEN’s operating environment.

While revenues declined, cost pressures did not ease proportionately. Purchased power costs dropped, but increased depreciation from new and existing assets, higher interest expenses and rising operating costs kept margins under strain.

The most significant hit came from impairment charges, which rose dramatically to P3.87 billion from only P807 million a year ago. Much of this relates to asset write-downs in Vietnam, where regulatory challenges continue to affect project returns.

These impairments, combined with elevated financing costs, pulled down overall profitability.

As a result, net income for the period plunged to P2.23 billion, a steep fall from P8.97 billion in the same period last year. Although joint ventures delivered stronger income this year and helped offset some of the weakness, the improvement was not enough to counter the size of impairments and the additional financial burden of a larger debt load.

ACEN’s share price extended its downtrend from the August 2024 peak of P6.00 and now trades near P2.51, a level that places the stock at roughly 90× trailing earnings.

This valuation is significantly higher than the typical 10× earnings multiple observed among power utilities in emerging markets and reflects the sharp drop in ACEN’s profitability over the past year.

A clearer picture if we use enterprise value. Using a market capitalization of P97.745 billion, total consolidated debt of roughly P151.18 billion from the latest financial statements, and cash and cash equivalents of P16.64 billion, ACEN’s enterprise value stands near P232.28 billion.

With an estimated EBITDA base of P11.59 billion, the stock trades at approximately 20× EV/EBITDA, which is higher than the usual 7× to 12× range seen in the Philippine and ASEAN power sectors.

These metrics show that despite the steep share-price decline, ACEN remains expensive relative to its current earnings and cash-flow capacity.

Technicals suggest the downside may be limited unless P2.30 breaks. Fundamentals explain why upside remains capped until earnings meaningfully improve. The stock may be entering a long consolidation phase where price stabilizes but does not advance aggressively. This kind of base-building is typical for companies whose charts have finished a bearish cycle but whose fundamentals have yet to recover.

If selling pressure resumes, the first downside target lies near P2.30, a minor horizontal support just above the 2020 consolidation zone. A deeper retracement could pull the stock toward P2.10, a level that aligns with a major support line and the 78.6-percent Fibonacci retracement of the entire 2020 advance.

Should sector sentiment deteriorate further, ACEN may revisit the longer-term cycle support near P1.90, which served as the ceiling of the pre-rally base before the 2021 breakout.

If ACEN holds above P2.50 and breaks past P2.80, it signals that the market is beginning to look beyond the current weak financial results. But sustained upside requires improvement in revenues, EBITDA and net income, or at least a clear path toward stabilized profitability.

ACEN’s technical bottom is forming but its fundamental bottom is still in progress.

Price: P189.00

Year-to-date loss: -29.74 percent

Jollibee Foods Corporation (PSE: JFC) is the largest and most dominant quick-service restaurant (QSR) company in the Philippines, and one of the biggest Asian food service chains in the world.

With over 1,279 Jollibee stores nationwide and 480 more across international markets, including the U.S., Canada, the U.K., Middle East, and Southeast Asia, JFC operates a powerhouse portfolio of beloved brands such as Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal, Highlands Coffee, Smashburger, The Coffee Bean & Tea Leaf, and Tim Ho Wan, among others.

Known for its strong franchise model and massive customer base, JFC boasts a global network of over 6,800 stores across 34 countries.

Last year, JFC continued its steady expansion as total revenues climbed 10.6 percent to P269.94 billion from P244.11 billion, supported by a 9.7-percent increase in gross sales and a 21-percent rise in royalty and setup fees. As a result, net income advanced 20.1 percent to P10.80 billion, which reflected JFC’s ability to convert revenue growth into stronger profitability despite inflationary pressures.

This year, JFC delivered strong top-line growth for the first nine months of 2025 as consolidated revenues rose to P224.22 billion, up 14.3 percent from P196.25 billion in the same period last year. This increase reflected sustained momentum in both Philippine and international operations and continued expansion of the global store network.

Net income also improved, which reached P9.02 billion compared to P8.88 billion last year, indicating stable margins despite higher raw material costs, labor expenses and expansion-related spending.

JFC’s stock price shows a deep correction that mirrors the market’s reassessment of its growth outlook. From last year’s peak near P270, the share price dropped sharply to as low as P178 before stabilizing near P189, which represents a decline of about 30 percent.

At this level, JFC now trades at a TTM PE ratio of 20.94×, a valuation that has moved closer to the global quick-service restaurant range of 15× to 25×. The premium that once stood above 26× has narrowed, which indicates that the market has begun aligning JFC’s valuation with sector norms.

This reset suggests that investors expect earnings growth to continue but remain more cautious given rising operating costs, foreign-exchange pressures and the more competitive global environment.

From a technical perspective, JFC’s chart reflects a completed multi-month distribution pattern. The long decline from the P240 region created a clear five-wave sell-off structure.

Wave 1 started with the initial break below P230, Wave 2 retraced toward P240, Wave 3 drove the steep collapse toward P195, Wave 4 stalled near P210 and Wave 5 completed the capitulation near the P178 low.

This structure indicates an exhausted downtrend, and the recent bounce toward P189 suggests the market has entered the early phase of a corrective Wave A–B–C recovery. For confirmation of short-term strength, the stock must sustain a move above P200.

Geometric price frameworks reinforce these signals. The region around P180 aligns with a major 180-degree support level derived from the previous cycle low in 2022. The strong reaction from this zone indicates that long-term buyers defended the level.

The next geometric price resistance sits near P200, which corresponds to the 270-degree angle. A close above this level opens the path toward P220, which matches the 360-degree rotation and serves as the next major target. Failure to break the P200–P205 band, however, keeps JFC vulnerable to another retest of the P178 support region.

At present, JFC shows signs of technical stabilization while its valuation has normalized. The stock has not yet signaled a confirmed reversal, but the completion of a five-wave decline combined with strong geometric price support suggests that the downside may be limited as long as P180 holds.

Until then, the stock remains in a consolidation phase where fundamentals and technical trends must converge before a durable reversal can emerge.

Price: P6.11

Year-to-date loss:  -28.95 percent

Monde Nissin Corporation (PSE: MONDE) is one of the Philippines’ largest branded food manufacturers and a leading player in the broader Asia-Pacific consumer goods sector.

The company operates two major business segments: the Asia-Pacific Branded Food and Beverage (APAC BFB) division and its Meat Alternative business. Monde Nissin is best known for iconic household brands such as Lucky Me! instant noodles, SkyFlakes, and Fita crackers, Nissin biscuits, M.Y. San Grahams, Dutch Mill beverages, and Mama Sita’s culinary products, which anchor its dominant position in key food categories across the region.

The APAC BFB segment contributes 83.6 percent of the Group’s total net sales, underscoring the strength of its widely consumed snacks, noodles, baked goods, and beverage products.

The remaining 16.4 percent of revenues comes from its global Meat Alternative business, which includes the Quorn and Cauldron brands—market leaders in the United Kingdom and major players in the growing global alternative protein space.

Last year, MONDE posted revenues of P83.12 billion in 2024, a modest 3.7-percent increase from P80.17 billion in 2023, but the company’s underlying profitability weakened despite the improvement in its official PFRS net income.

The company reported an audited net income of P449.5 million for 2024, a turnaround from the P626.6-million loss the previous year. However, this apparent recovery came mainly from smaller non-cash impairment charges.

After adding back the P6.80-billion impairment booked in 2024, adjusted earnings reach only about P7.24 billion, which is significantly lower than the P12.64 billion adjusted earnings in 2023 after adding back last year’s larger P13.27-billion impairment. This means that while headline net income improved, MONDE’s true underlying profitability actually declined sharply year-on-year.

Yet despite the sharp drop in underlying profitability last year, MONDE showed signs of recovery in 2025 as revenues and earnings moved higher.

This year, for the first nine months, MONDE delivered P63.26 billion, a 3.5-percent increase from P61.15 billion in the same period last year.  As a result, earnings improved modestly, with net income rising to P6.67 billion from P6.09 billion in 2024, supported by lower operating expenses, reduced impairment charges, and better finance income.

If we annualize its nine-month earnings, we can estimate MONDE’s earnings by year end at roughly P8.9 billion. At its current market capitalization of P109.8 billion, the stock trades at an estimated forward PE of about 12.3 times, which places it slightly below global food manufacturers.

MONDE’s price chart shows a clean multi-year A-B-C corrective cycle that began after its post-IPO peak above P16. The first leg down (Wave A) pushed the stock toward the P8 level, followed by a choppy rebound into the P10–P11 area that formed a typical Wave B retracement.

From there, the stock entered a long Wave C decline, unfolding into a clear five-wave structure that steadily drove prices to the current P5.80–P6.10 range. This zone is important because it aligns with a major price geometric support cluster, specifically the 50-percent retracement of the full post-IPO range and a long-term geometric angle that has historically acted as a reversal zone.

The price behavior around this level suggests the final stage of the Wave C decline may be ending. However, the downtrend remains intact until MONDE can break above the descending price geometric resistance near P7.40 and form a higher low.

A sustained move above this area would signal the start of a potential new impulsive cycle. If the P5.80 support fails, though, the chart opens room for a deeper decline toward P5.00, which would mark the final capitulation level for the entire corrective cycle.

Price: P1,602

Year-to-date loss:  -26.65 percent

Globe Telecoms (PSE: GLO) is the leading telecommunications and technology provider in the country with 60.9 million mobile subscribers, 1.74 million home broadband customers, and over 700 thousand landline subscribers.

About 71 percent of GLO’s revenues comes from mobile service, 14.5 percent from home broadband, and another 14.5 percent from corporate data, fixed line voice, and non-service revenues.

Last year, GLO’s revenues were largely flat, inching up by 0.2 percent to P180.59 billion as a 12.7-percent drop in non-service revenues offset the 1.7-percent improvement in service revenues. Because of this, income before tax was down by 6.4 percent, which leaves net income essentially unchanged at P24.29 billion from the 2023, but still far below 2022 levels.

For the first nine months of 2025, GLO generated P131.6 billion in operating revenues, about two percent lower than the same period last year as household spending softened and competition in mobile services intensified.

As a result, net income fell to P17.7 billion from P20.6 billion, while core net income eased to P15.5 billion from P17.7 billion, which reflects the impact of higher depreciation and financing costs rather than a deterioration in day-to-day operations.

At P1,602 per share, GLO is trading near its cheapest valuation range in a decade, with a forward P/E of about 10.6× based on projected 2025 net income of P20.8 billion, well below its historical norm of 12–14×.

A simple reversion to a 13× multiple places fair value near P1,950 per share, even before considering the hidden value of its investment in Mynt. Globe carries its Mynt stake at only P15.29 billion, yet a market valuation of roughly P285 billion implies Globe’s 36-percent interest is worth about P102.6 billion. This unrealized gain of roughly P87 billion would lift Globe’s adjusted net asset value to about P1,812 per share, making the stock undervalued even after this year’s market rebound.

GLO’s price structure shows a clear five-wave impulse decline from its 2024 peak near P2,500 down to the current P1,450 area, consistent with a final Wave C in the larger corrective cycle that began after its 2022 highs.

Momentum loss and weakening volume during the recent sell-offs suggest selling exhaustion, placing the stock near the tail end of Wave 5 of C, with major support emerging between P1,350 and P1,400.

The geometric framework reinforces this view: the nearly 40-percent retracement aligns with a classic long-term reversal zone, and the current price sits near the intersection of the ascending 1×1 Gann support drawn from the 2020 low, which indicates time–price convergence.

Price geometric’s 360-day timing window also points to the first quarter of 2026 as the likely completion of this decline. Taken together, both methods imply the correction is nearing completion and GLO may soon shift into an accumulation phase, with a rebound toward P1,900 as the initial target and a move above P2,000 confirming a long-term trend reversal.

Price: P20.35

Year-to-date loss: -22.33 percent

Ayala Land, Inc. (PSE: ALI) is the largest and most diversified real estate developer in the Philippines, with a nationwide presence across 53 master-planned estates and a landbank of over 10,736 hectares.

The company operates an integrated property platform that spans luxury and upscale residential brands such as AyalaLand Premier and Alveo, middle-income and affordable housing through Avida, Amaia, and BellaVita, large-scale estate development, and commercial leasing through Ayala Malls, Ayala Land Offices, ALogis industrial facilities, and its hospitality portfolio under Seda Hotels and AyalaLand Hotels & Resorts.

In 2024, 64 percent of revenues came from property development, 26 percent from leasing and hospitality, and 10 percent from services, construction, and strategic investments, making ALI a uniquely diversified full-line property company in the country.

ALI’s 2024 financial performance reflected a strong rebound in both revenues and earnings, with total consolidated income rising to P180.74 billion, up 21 percent from P148.86 billion in 2023, driven primarily by the 21-percent surge in real estate revenues, which increased to P176.53 billion from P145.50 billion the prior year.

Higher equity earnings, stronger interest income, and improved other income further supported top-line growth. This expansion flowed through to profitability as net income climbed to P34.24 billion, which represents an 18 percent year-on-year increase.

This year, ALI generated P121.83 billion in consolidated revenues for the first nine months, which declined from P125.21 billion recorded in the same period of 2024. Its real estate revenues, which drive the bulk of ALI’s topline, eased from P122.60 billion to P119.02 billion, which reflects slower project completions and selective launches during the period.

Despite the dip in revenues, ALI delivered a slightly higher bottom line. Net income for the first nine months of 2025 rose to P25.74 billion, which exceeded the P25.26 billion recorded in the same period last year

ALI’s softer performance in 2025 has weighed heavily on its share price, which pulled the stock to multi-year lows not seen since the pandemic. The decline has driven ALI into attractive valuation territory.

At the current price of P20.35, the stock trades at a 12-month trailing P/E of 10.5×, below its long-term average of 15–17×, which historically reflected its status as a premium blue-chip property developer. It is also notable that the stock now trades slightly below book value, with a P/BV of 0.96×, a level rarely seen for Ayala Land outside of severe market downturns.

This valuation reset shows a market priced in a cyclical slowdown but may be overlooking ALI’s capacity to recover once project launches normalize and interest rates ease. The stock now trades at levels that imply distressed conditions even as earnings remain stable, which creates a potential mispricing for long-term investors seeking value in the property sector.

ALI’s price action over the past three years shows a completed multi-year corrective cycle and a potential new base developing near the P20  level. The stock peaked near P41 in early 2022 and entered a prolonged decline that unfolded in a clear three-wave (A–B–C) corrective structure.

Wave A dropped from the P41 peak to the P27 zone, which marked the first leg of the downturn. Wave B followed in 2023 with a rebound toward P33 but failed to retest the 2022 highs, which showed clear momentum loss. This weakness paved the way for Wave C, the final and longest leg of the correction.

Wave C unfolded aggressively from mid-2024 to late 2025, which dragged ALI below key supports at P28, P24, and P22 before touching the recent capitulation low near P19. This decline shows a textbook C-wave pattern which is steep, extended, and accompanied by persistent selling pressure.

The rebound from P19 toward P21 marks the early phase of a potential new cycle. If the P19 low holds, it likely serves as the terminal point of Wave C, which completes the entire A–B–C correction that began in 2022. In wave theory terms, this opens the door for a larger trend reversal once the market confirms a higher low above P19.

From a price-geometry standpoint, ALI’s slide from the 2022 peak to the 2025 low matched a classic 36-month Gann cycle, which often marks major bottoms for large-cap names.

The decline also halted near the 2×1 support around P19, a zone where selling pressure typically fades and long-term buyers begin to re-enter. If the stock pushes above the P21.50 area, this will trigger the first reversal signal, while P24 serves as the next resistance band.

If ALI clears P21.50 with strong volume, wave projections point toward an initial recovery target of P25, with a broader medium-term target near P28, where the prior breakdown occurred. A decisive breakout above P28 would complete a full wave trend reversal and open the path back to the P34 region.

However, if ALI fails to hold the P19 support, the next level sits at P17.50, a zone of historical congestion and Fibonacci extensions. This only becomes relevant if macro or sector conditions deteriorate further, but for now, P19 remains a strong structural low.

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