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9 US Growth Stocks in Temasek’s Portfolio with Great Prospects

Mastercard Cards
Mastercard Cards

It pays to sit in for the long term when you invest as businesses need time to grow.

Patience is the key to reaping great long-term returns as you compound your wealth in great companies.

To get an idea of which companies fit the bill, it’s useful to cast a glance at investors or investment firms that are famous for their patience.

Warren Buffett is an investor who is renowned for this long-term orientation.

And when it comes to investment firms, not many can beat Temasek Holdings.

The vaunted investment company saw its investment portfolio hit an all-time high for the fiscal year ending 31 March 2022.

It also chalked up an impressive 20-year annual compounded shareholder return of 8%.

We previously featured five promising US growth stocks within Temasek’s portfolio.

Here are another four that you can consider adding to your buy watchlist.

BlackRock (NYSE: BLK)

BlackRock is the world’s largest asset manager and provides investment, advisory and risk management solutions to its clients.

The company’s assets under management (AUM) stood at US$8.5 trillion as of 30 June 2022.

Volatility in the stock markets has led to an exodus in AUM for the 34-year-old investment firm.

Its AUM has fallen by 11% year on year from US$9.5 trillion back in the second quarter of 2021 (2Q2021).

For 2Q2022, revenue dipped by 6% year on year to US$4.5 billion while operating income fell 14% year on year to US$1.7 billion.

Net profit slipped 22% year on year to US$1.1 billion.

Despite the weaker results, BlackRock still reported net inflows of US$89.6 billion for 2Q2022, demonstrating its ability to continue attracting fund flows.

Around 65% the company’s AUM is parked in indexes and ETFs, with 26% under active management.

Two-thirds of the AUM comes from the US with Asia-Pacific contributing just 8%.

The company’s quarterly dividend has also risen despite the effects of the pandemic on its results.

The dividend per share increased from US$3.63 in 2Q2020 to US$4.88 in 2Q2022.

Mastercard (NYSE: MA)

Mastercard is a company that facilities payments between merchants and customers, and has a presence in more than 210 countries and territories.

As of 2Q2022, the company has a total of 2.97 billion cards in issue.

Mastercard posting an encouraging set of earnings for 2Q2022.

Revenue jumped 21% year on year to US$5.5 billion while operating profit climbed 29% year on year to US$3 billion.

Net profit improved by 10% year on year to US$2.3 billion.

Gross dollar volume rose 7.7% year on year to US$2.1 trillion.

Cross-border volumes also surged 58% year on year as overall consumer spending remained robust.

Roblox (NYSE: RBLX)

Roblox is an online game platform and game creation system that allows users to program and play games.

For 2Q2022, the company reported a 30% year on year jump in revenue to US$591.2 million as it saw more user engagement on its platform.

However, the operating loss widened to US$170.3 million from US$143 million a year ago and the net loss increased by 26% year on year to US$176.4 million.

Roblox also booked a negative free cash flow of US$57.3 million for 2Q2022 after a run of ten consecutive quarters of positive free cash flow.

On a positive note, average daily active users continued to grow, rising 21% year on year to 52.2 million.

Hours engaged also rose 16% year on year to 11.3 billion.

Lumen Technologies (NYSE: LUMN)

Lumen Technologies is a telecommunication company with around 450,000 route fibre miles that serves customers in more than 60 countries.

Operating revenue dipped by 6% year on year to US$4.6 billion for 2Q2022 while operating profit fell by 9% year on year to US$912 million.

Net profit plunged by 32% year on year to US$344 million.

On a positive note, Lumen generated a free cash flow of US$668 million and also reduced its net debt by almost US$900 million year to date.

The company also completed its Latin American business divestment for approximately US$2.7 billion.

Elsewhere, Lumen invested in its sixth on-net subsea route across the Atlantic Ocean last month.

By doing so, it will significantly increase its network capacity and diversity.

How do you decide if a growth stock is worth your money? There is no shortage of stock ideas today, but is a particular stock suitable for you? Find out more in our latest FREE report, How To Find The Best US Growth Stocks For Your Portfolio. Click HERE to download the report for free now!

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Disclaimer: Royston Yang owns shares of Mastercard.

The post 9 US Growth Stocks in Temasek’s Portfolio with Great Prospects appeared first on The Smart Investor.