It's Time to Own Discretionary Stocks, 22V Research Says By Sabrina Escobar LIVE Black Friday Numbers Are Rolling In. Online Shopping Heats Up. Last Updated: 22 hours ago Memberships Subscribe to Barron's Tools Customer Service Customer Center Network Cryptocurrencies Data Magazine Markets Stock Picks Barron's Live Roundtable Barron's Stock Screen Personal Finance Streetwise Advisor Directory It may be just the moment to buy consumer-discretionary stocks, 22V Research says, even though retail stocks' perfor ...

Core Insights - Several Singapore household names have surpassed their 52-week highs, indicating renewed investor confidence and potential for sustained momentum [1][2] DBS Group Holdings Ltd (SGX: D05) - DBS Group Holdings is Singapore's largest bank, with shares reaching a peak of S$54.80 on October 7, 2025, driven by robust earnings of S$6.825 billion before tax for 1H2025, a 3% increase from 1H2024 [3][4] - The bank maintains healthy net interest margins (NIMs) at 2.08% and offers a trailing dividend yield of 5%, although it is sensitive to interest rate fluctuations [4][5] - The bank's digital transformation initiatives have bolstered growth and efficiency, making it a solid long-term investment despite potential earnings decline when rates ease [5][16] SBS Transit Ltd (SGX: S61) - SBS Transit, Singapore's leading public transport operator, reached a 52-week high of S$3.40 per share in September 2025, benefiting from improved ridership returning to pre-COVID levels [6][10] - The company reported a profit after tax of S$31.1 million for 1H2025, a 7.7% decline from the previous year, while declaring an interim dividend of S$0.0895 per share, a 60% increase from the prior year [7][8] - SBS Transit faces regulatory constraints and renewal risks with government contracts, which may cap its growth potential [9][10] Sheng Siong Group Ltd (SGX: OV8) - Sheng Siong, one of Singapore's largest supermarket chains, reached an all-time high of S$2.23 in July 2025, with a profit after tax of S$72.3 million for 1H2025, a 3.4% year-on-year increase [11][12] - The company has opened 11 new stores, expanding its total to 82, and plans to establish a new warehouse and distribution center [12][13] - Sheng Siong offers consistent growth and reliable dividend income, although it faces challenges in sustaining growth as its store network matures [14][15] General Market Insights - Stocks hitting new highs often reflect strong fundamentals rather than mere overvaluation, with DBS Group Holdings exemplifying a solid business model [16] - SBS Transit provides defensive stability as an essential service provider, while Sheng Siong remains a reliable consumer staple with growth potential [17]

called value traps. Value traps are stocks that appear to be cheap based on traditional valuation metrics like the PE ratio. However, they're cheap for some very good underlying reason.So, first we should talk about what can lead a good business to become genuinely undervalued. It typically has something to do with investor emotions. It can take many different forms.But it's typically short-term thinking surrounding things like a negative market sentiment, fear around something like a supply chain shock or ...

Investment & Opportunity Cost - The tweet suggests a potential opportunity cost in spending time on traditional financial analysis (projecting cash flows, learning business fundamentals) compared to investing in a "piece of rock" (potentially referring to a simpler, perhaps alternative, investment) [1] - The tweet implies that simpler investments might yield similar or better returns than complex financial analysis, questioning the value of extensive financial modeling [1]

Core Viewpoint - The article discusses common mistakes investors make during market highs and emphasizes the importance of focusing on business fundamentals, maintaining a diversified portfolio, and adhering to a disciplined investment strategy to avoid costly errors. Group 1: Mistake 1 - Chasing Momentum - Investors often rush to buy stocks that are experiencing rapid price increases, driven by speculative trading rather than solid fundamentals, which can lead to significant losses when momentum reverses [2][3] - An example is Seatrium Ltd, which reached a 52-week high of S$2.60 in February 2025 but fell to a low of S$1.62 by April 2025, illustrating the risks of buying at peak prices [3][4] Group 2: Mistake 2 - Overconcentrating on "Winners" - Concentrating too much investment in a single stock or sector can be risky, as even strong performers can decline sharply, leading to panic selling [5][6] - DBS Group Holdings Ltd saw its share price drop to a 52-week low of S$36.30 on April 7, 2025, a decline of over S$10 from the previous week, highlighting the dangers of overexposure [6][7] Group 3: Mistake 3 - Ignoring Valuations - Investors may overpay for quality companies during high enthusiasm, leading to disappointing returns if the companies cannot sustain their growth [8][9] - It is crucial to balance quality with price by analyzing metrics like price-to-earnings (P/E) and price-to-book (P/B) ratios to ensure reasonable valuations [9] Group 4: Mistake 4 - Forgetting Income & Cash Flow - Dividend-paying stocks provide steady cash flow and can help smooth returns during volatile markets, making them an essential part of a portfolio [10][11] - Sheng Siong Group Ltd is highlighted as a resilient dividend stock, with an interim dividend payout of S$0.032 per share for the first half of 2025, unchanged from the previous year [11] Group 5: Mistake 5 - Trying to Time the Market - Attempting to time the market for perfect entry or exit points is nearly impossible and can lead to missed gains [12][14] - A recommended strategy is Dollar-Cost Averaging (DCA), which allows investors to invest consistently over time, reducing the impact of volatility [13][14] Group 6: Conclusion - The article emphasizes the need for discipline during market highs, focusing on business fundamentals, maintaining diversification, and committing to a consistent investment strategy to build lasting wealth [15]

Core Viewpoint - Zscaler's share price is projected to reach $360 due to positive technical price action, favorable analyst sentiment, and strong business fundamentals, indicating a breakout from a long-term trading range [1][2][5]. Group 1: Business Fundamentals - The recent breakout in Zscaler's stock price is attributed to business fundamentals catching up to valuation concerns, leading to an improved outlook for sustainable 20% growth and increasing shareholder value [2][10]. - Zscaler reported a solid fiscal Q3 2025, with revenue exceeding analyst forecasts and growth remaining above 20%, supported by accelerated gains in billings and deferred revenue [10][11]. - The company has a robust balance sheet with over $3 billion in cash and equivalents, a 21% increase in net income, and an 18% free cash flow margin [11]. Group 2: Analyst Sentiment - Analyst activity shifted positively following Zscaler's fiscal Q3 results, with a 17% increase in the consensus price target and no decreases tracked among 36 analysts [5][6]. - The consensus price target reflects a 25% increase compared to the previous year, indicating strong analyst confidence in the company's performance [6][11]. - The stock currently has a Moderate Buy rating, with a high forecast of $320 and an average forecast of $277.32 [11][15]. Group 3: Market Dynamics - The market is experiencing a recovery rally, with projections suggesting potential new all-time highs in the range of $375 to $403 [4]. - Institutional investors own 41% of Zscaler's stock and have been buying on balance throughout the year, providing a solid support base for price action [13]. - Short interest was at 9% ahead of the release, setting the stage for a potential short-covering rally [14]. Group 4: Product Development - Zscaler's new product, Z-Flex, is designed to streamline security stack adjustments for businesses, enhancing flexibility and scalability while reducing costs [9][8].