Large blue-chip stocks tend to be the focus of investors because their long-established track records are expected to result in positive performances.
But who says small and mid-cap stocks cannot do well too?
According to UOB KayHian, 40% of the companies under its small-mid cap coverage that reported results in 2Q20 had surprised on the upside.
Another 40% had met expectations this earnings season, while 20% had missed expectations, it adds.
Notable beats include Riverstone Holdings, Sheng Siong Group, Sunningdale Tech, Food Empire Holdings and Propnex, the brokerage points out.
UOBKH says Riverstone, Food Empire and Frencken Group are its top picks.
It has a “buy” rating for all three stocks with a target price of $6.00, 85 cents and $1.37, respectively.
“We continue to recommend investors selectively accumulate deep-value names with good track records,” UOBKH analyst John Cheong and the research team write in a note dated Aug 28.
As at 11.34 am, Riverstone was up 10 cents or 2.5% at $4.12 with 1.1 million shares changed hands.
Frencken was up 0.5 cent or 0.5% at 94.5 cents with 1.4 million shares changed hands.
Food Empire, however, was down 0.5 cent or 0.8% at 62 cents with 78,500 shares changed hands.
