Temasek Holdings has seen the value of its investment portfolio hit an all-time high for the fiscal year ending 31 March 2022.
The Singapore investment firm reported an impressive 20-year total annual compounded shareholder return of 8%.
Temasek is a long-term investor and is well-known for making strategic investments in both listed and unlisted businesses.
While the investment firm owns a fair share of Singapore blue-chip stocks, growth-oriented investors can also take a peek at its US portfolio to get ideas for growth stocks.
Although close to half of Temasek’s portfolio is based in China and Singapore, the firm does own several US stock positions.
These names are reputable ones and we are profiling five of them that could end up on your buy watchlist.
S&P Global Inc (NYSE: SPGI)
S&P Global provides credit ratings, benchmarks, analytics and workflow solutions to a variety of organisations in the global capital, commodity, and automotive sectors.
The company’s adjusted revenue for the second quarter of 2022 (2Q2022) saw a 5% year on year dip to US$3 billion.
Operating profit slid 10% year on year while net profit dipped 11% year on year to US$955 million.
Despite the weaker performance, the business generated US$636 million of free cash flow for the first half of 2022 (1H2022).
Management also highlighted that its merger with IHS Markit back in February is proceeding well.
Cost and revenue synergies are expected to be realised ahead of expectations, and S&P Global has also accelerated its share buybacks to US$8.5 billion year to date and remains on track to buy back US$12 billion worth of shares by the end of 2022.
Visa (NYSE: V)
Visa is a market leader in digital payments and helps to facilitate transactions between customers, merchants, financial institutions and government bodies across more than 200 countries and territories.
The company is present in more than 100 million merchant locations and has 3.8 billion cards in issue as of 31 December 2021.
Visa reported a strong set of earnings for its fiscal 2022’s third quarter (3Q2022) ended 30 June 2022.
Net revenue rose 19% year on year to US$7.3 billion while net income surged 32% year on year to US$3.4 billion.
The better performance resulted from a 12% year on year increase in payments volume, with cross-border volumes soaring 40% year on year as economies reopened and consumers started spending again.
PayPal (NASDAQ: PYPL)
PayPal helps to facilitate payments between parties through online transfers.
As of 2Q2022, PayPal has 429 million active consumer and merchant accounts and processed US$340 billion in total payment volume (TPV).
Its 2Q2022 saw net revenue rising 9% year on year to US$6.8 billion but operating income fell from US$1.1 billion to US$764 million due to higher transaction expenses and a restructuring charge.
Despite the weaker performance, free cash flow grew by 22% year on year to US$1.3 billion for the quarter.
PayPal added 400,000 net new accounts in 2Q2022 while payment transactions jumped 16% year on year to 5.5 billion.
The company authorised a new US$15 billion share buyback and expects operating margin expansion next year.
Airbnb Inc (NASDAQ: ABNB)
Airbnb runs a service that lets property owners rent out their lodging for travellers looking for a place to stay.
The company’s platform caters to homestay, vacation rentals and tourism and boasts over four million hosts.
Strong travel demand pushed Airbnb’s revenue up 58% year on year to US$2.1 billion for 2Q2022.
The company reported its most profitable second quarter ever with a net profit of US$379 million, reversing a net loss of US$68 million in the previous year.
Gross booking value hit US$17 billion during the quarter, up 27% year on year, buoyed by higher average daily rates.
Thermo Fisher Scientific Inc (NYSE: TMO)
Thermo Fisher manufactures and sells medical diagnostic equipment and accessories that are sold to clinics, hospitals and pharmaceutical research laboratories.
The company reported revenue growth of 18% year on year to US$11 billion in 2Q2022 with acquisitions forming the bulk of the increase.
Net profit, however, dipped slightly from US$1.8 billion to US$1.66 billion.
Thermo Fisher continued to generate a healthy free cash flow of US$2.6 billion for 1H2022.
The medical device company also declared a quarterly dividend of US$0.30 per share.
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Disclaimer: Royston Yang owns shares of Visa and PayPal.