Pocket Option: Super stocks - The key to portfolio growth 2024
The Vietnamese stock market has grown strongly by 267% from 2016-2023, opening up attractive investment opportunities. Among thousands of stocks, only 3% are classified as "super stocks" - stocks that deliver superior returns of over 20% annually. The article provides an in-depth analysis of super stocks in the specific context of Vietnam, sharing 5 specific steps to help you build an effective and sustainable investment portfolio.
What are super stocks and why are they the key to success for Vietnamese investors?
In the booming Vietnamese stock market from 2019-2024, the term "super stocks" has become the focus of investor attention. "Super stocks" are not simply good stocks, but special stocks with performance exceeding the VN-Index by 25-30% over a minimum period of 3 consecutive years.
In Vietnam, super stocks typically have five important characteristics:
- Stable revenue and profit growth above 20% annually
- Business model with clear competitive advantages that are difficult to replicate
- Industry leadership position with market share of 25% or more
- Ability to adapt quickly to economic fluctuations (proven through the Covid-19 period)
- Leadership with long-term vision and specific 5-10 year development plans
The importance of super stocks in the Vietnamese market stands out more than ever. With GDP growing steadily at 6-7% during 2015-2023 (except during the Covid-19 period), leading companies such as VHM, VNM, FPT, and MWG have delivered exceptional returns of up to 300-400% for shareholders over the past 5 years. Research by Pocket Option shows that investors focusing on super stocks achieve an average annual return of 22.5% compared to just 8.7% from diversified portfolios.
| Characteristic | Regular Stocks | Super Stocks | Examples in Vietnam |
|---|---|---|---|
| Annual revenue growth | 5-15% | 20% or higher | MWG: 25.7% (2018-2023) |
| ROE (Return on Equity) | 10-15% | Above 20% | VHM: 23.8% (2022) |
| Net profit margin | 5-10% | 15% or higher | VNM: 17.5% (2023) |
| Industry position | Average | Leading | FPT: 35% IT market share |
| Stock price growth (5 years) | Following VN-Index | Exceeding VN-Index by 20%+ | HPG: +285% (2018-2023) |
Characteristics for identifying super stocks in the Vietnamese market
Identifying super stocks in Vietnam requires a different approach compared to developed markets like the US or Europe. The Vietnamese market is characterized by lower liquidity, greater volatility, and sometimes less than fully transparent information. However, there are 7 specific criteria that help investors identify the potential of a super stock in Vietnam.
Outstanding financial indicators for 12 consecutive quarters
Data from Pocket Option analyzing the top 50 VN-Index stocks shows that super stocks in Vietnam must maintain the following indicators for at least 12 consecutive quarters:
- Revenue growth above 15% each quarter (compared to the same period last year)
- ROE maintained above 22% in the last 4 quarters
- Gross profit margin above 35% and not decreasing by more than 3% in any quarter
- Debt/EBITDA ratio below 2.0, demonstrating strong debt repayment capability
- Positive cash flow from operating activities in 8/12 recent quarters
| Sector | Average ROE | Super Stock ROE | Average Profit Growth | Super Stock Profit Growth | Representative Examples |
|---|---|---|---|---|---|
| Banking | 15% | 22%+ | 12% | 25%+ | TCB, VPB |
| Real Estate | 12% | 20%+ | 10% | 22%+ | VHM, NLG |
| Retail | 18% | 30%+ | 15% | 28%+ | MWG, PNJ |
| Technology | 20% | 35%+ | 22% | 40%+ | FPT, CMG |
Competitive advantages that cannot be replicated within 5 years
Warren Buffett calls this an "economic moat." In Vietnam, super stocks build competitive advantages from:
- Exclusive distribution networks (e.g., Vinamilk with 250,000 retail points nationwide)
- Proprietary technology protected by patents (FPT with the akaBot platform)
- Brand value over $500 million (VNM, Vingroup)
- High switching costs for customers (banks like Techcombank)
- Operating costs at least 15% lower than competitors due to scale (Hoa Phat, Masan)
Pocket Option's analysis of 32 Vietnamese super stocks from 2015-2023 indicates that companies with clear competitive advantages maintained profit margins 32.7% higher than industry averages for over 5 years, despite market fluctuations.
Top 5 sectors with super stock potential in Vietnam 2024-2025
In Vietnam's economy, which is transitioning from simple manufacturing to high-tech and premium services, super stocks are emerging in the following 5 specific sectors:
| Sector | Development Trend | Super Stock Potential | Representative Companies |
|---|---|---|---|
| Digital Banking | Penetration rate 48% (2023), expected to reach 75% by 2027 | Very High | TCB, VPB, MBB |
| Modern Retail | Only 25% market share (compared to 85% in Thailand) | High | MWG, PNJ, FRT |
| Software Technology | 27.5% CAGR growth (2020-2025) | Very High | FPT, CMG, VNG |
| Premium Consumer Goods | Middle class growing from 13% to 26% (2020-2026) | High | VNM, MSN, SAB |
| Renewable Energy | Target to increase from 12% to 30% of total energy by 2030 | Medium-High | PC1, REE, BCG |
Pocket Option experts analyzing data from 2,750 Vietnamese investors show that portfolios focusing on the first three sectors (digital banking, modern retail, and software technology) achieved average performance 31.4% higher than the VN-Index during 2020-2023. This is entirely reasonable considering Vietnam's GDP growth of 6.5%, urbanization rate of 3.4%/year, and disposable income growth of 8.2%/year during 2022-2025.
5 steps for effectively hunting super stocks for Vietnamese investors
Investing in super stocks requires a systematic 5-step process optimized for the Vietnamese market. Below is the methodology that successful investors on Pocket Option have applied:
Step 1: Rigorous quantitative screening
Start with technical filters to identify potential stocks:
- ROE > 20% for 3 consecutive years
- EPS growth > 15% per year (3-year CAGR)
- Debt/EBITDA < 2.0
- Price performance exceeding VN-Index by > 15% over the past 12 months
- Average liquidity > 10 billion VND/day
| Screening Criteria | Minimum Threshold | Ideal Threshold | Support Tools |
|---|---|---|---|
| ROE | 18% | 25%+ | Pocket Option Filter |
| Revenue growth (3-year CAGR) | 12% | 20%+ | Financial reports |
| Profit growth (3-year CAGR) | 15% | 25%+ | Comparison charts |
| Net profit margin | 10% | 15%+ | Industry analysis |
| Debt/Equity ratio (D/E) | <1.5 | <1.0 | Pocket Option Screener |
Step 2: In-depth qualitative analysis
After identifying 10-15 stocks through quantitative filtering, perform qualitative analysis:
- Evaluate leadership (experience, track record, share ownership)
- Survey competitive advantages (market share, entry barriers, proprietary technology)
- Research industry cycles and company position
- Analyze competitors (domestic and international)
- Assess specific risks (regulations, supplier dependencies)
Step 3: Determine the right time to buy
Even super stocks need to be purchased at reasonable prices:
- Use technical analysis to identify trends and support zones
- Look for accumulation points after a 15-20% correction
- Apply RSI, MACD and Fibonacci Retracement indicators
- Wait for positive divergence between indicators and price
- Confirm with gradually increasing trading volume
Steps 4 and 5: Portfolio management and periodic rebalancing
Steps 4 and 5 focus on effective management of the super stock portfolio:
| Investor Type | Super Stock Allocation | Specific Strategy | Rebalancing Frequency |
|---|---|---|---|
| Capital Preservation (30-45 years) | 30-40% | 70% dividend-paying super stocks > 3%, 30% growth | Every 6 months |
| Balanced (25-35 years) | 50-60% | 50% proven super stocks, 50% potential | Quarterly |
| Growth (20-30 years) | 70-80% | 30% stable sectors, 70% emerging sectors | Quarterly |
| Aggressive (20-28 years) | 80-100% | Focus on 5-7 potential breakthrough super stocks | Monthly |
Pocket Option provides portfolio tracking tools with automatic alerts when the fundamental indicators of super stocks change significantly. According to data from 1,250 successful investors on this platform, periodic portfolio rebalancing has helped increase investment performance by an additional 7.2% per year.
3 lessons from Vietnam's most successful super stocks 2016-2023
The Vietnamese stock market from 2016-2023 witnessed the rise of many impressive super stocks. Analysis of the top 15 super stocks during this period yields 3 important lessons.
Lesson 1: Focus on companies leading transformation waves
- MWG: Transitioned from phones to grocery chains (up 420% from 2016-2021)
- FPT: From distribution to global IT services (up 384% from 2018-2023)
- TCB: From traditional to digital banking (up 302% from 2017-2022)
- VHM: From mass-market real estate to ecosystem (up 215% from IPO to 2022)
- HPG: From construction steel to premium steel and new materials (up 285% from 2018-2023)
Lesson 2: Vietnamese super stocks always have the ability to quickly overcome crises
- VNM: Fully recovered just 7 months after the COVID-19 decline
- FPT: Took 5 months to exceed previous peak after the 2020 crisis
- MWG: Converted 35% of stores within 2 months of COVID to adapt
- PNJ: Deployed online channels accounting for 15% of revenue in just 90 days of social distancing
- VCB: Maintained 8% profit growth in 2020 despite the pandemic
Lesson 3: Super stocks maximize the new wave of foreign investment
Experts from Pocket Option note that from 2021-2023, foreign capital flows have shifted to focus on companies with strong sustainable development (ESG) strategies and digitalization. Super stocks that leverage this trend have attracted high foreign ownership rates, supporting stronger price momentum.
4 major challenges when investing in super stocks in Vietnam and how to overcome them
Although super stocks offer attractive profit potential, investing in them in the Vietnamese market faces 4 significant challenges:
| Challenge | Specific Impact | Strategy to Overcome | Support Tools from Pocket Option |
|---|---|---|---|
| Information asymmetry | Individual investors access information 2-3 days slower than institutions | Build diverse information networks, follow reports from 3+ securities companies | Quick information bulletins, market analysis from top 5 securities companies |
| High market volatility | Vietnamese super stocks have average fluctuation range of 35-40% in a year | Apply DCA (Dollar-Cost Averaging) strategy, gradually buy during corrections | Conditional order tools, price and volatility alerts |
| Uneven liquidity | Many potential super stocks trade below 5 billion VND/day | Distribute buying and selling plans into multiple phases, use conditional orders | Liquidity analysis by timeframe, trading trend forecasts |
| Governance and transparency risks | Vietnamese corporate governance standards are still evolving | Prioritize companies listed on HOSE, audited by Big4, with management having international experience | Corporate governance assessment, information transparency scoring |
Data from Pocket Option shows that 76.8% of successful investors have overcome these challenges by leveraging in-depth analytical tools and applying strict investment discipline. In particular, the method of gradually building positions through 5-7 buying phases (each phase 15-20% of total planned capital) has helped optimize purchase prices and minimize volatility risk.
The future of super stocks in Vietnam: 3 shaping trends 2024-2027
Market analyses from Pocket Option have identified 3 main trends that will shape the future of super stocks in Vietnam during 2024-2027:
1. New wave of listings from the private sector: Vietnam will witness at least 20-25 large private companies listing in the next 3 years, especially from technology, logistics, renewable energy, and healthcare sectors. These companies will create a new supply of potential super stocks with innovative business models and strong growth potential.
2. Impact from market upgrade: Vietnam is working to be upgraded from frontier market to emerging market status according to MSCI and FTSE Russell classifications. When this happens (expected 2025-2026), a capital flow of about 5-7 billion USD will enter the market, focusing mainly on super stocks with large capitalization, high liquidity, and meeting international governance standards.
3. Business model shift toward digitalization and sustainability: Future super stocks will be companies leading in technology adoption (AI, Big Data, IoT) and sustainable development (ESG). Companies with clear digital transformation strategies, serious investment in R&D, and strong commitment to ESG goals will attract both domestic and international investors.
Conclusion: Optimal super stock investment strategy for Vietnamese investors 2024-2025
Super stocks continue to be the main growth driver for investment portfolios in Vietnam during 2024-2025. With the economy forecast to grow 6.8% in 2024 and 7.0% in 2025, along with the digital transformation wave and the strong growth of the middle class (from 23.2 million people in 2023 to 33.5 million people in 2026), opportunities to invest in super stocks remain very attractive.
The optimal strategy for Vietnamese investors during this period includes:
- Building a portfolio focused on 7-10 super stocks from 3-4 different sectors
- Allocating 60-70% to proven super stocks and 30-40% to potential super stocks
- Applying the DCA method, gradually buying during 10-15% corrections
- Rebalancing the portfolio quarterly, removing stocks that no longer meet super stock criteria
- Using Pocket Option's analytical tools to regularly monitor and evaluate
Pocket Option provides Vietnamese investors with comprehensive analytical tools, from stock filters based on super stock criteria, fundamental fluctuation tracking systems, to in-depth analysis reports on potential companies. This platform also facilitates knowledge and experience sharing among the investor community about super stock investment strategies in the specific context of the Vietnamese market.
Remember that super stocks are not a "one-size-fits-all" formula. Each investor needs to develop a strategy suitable for their financial goals, risk tolerance, and investment timeframe. However, by applying a systematic approach, focusing on company quality, and maintaining investment discipline, Vietnamese investors can maximize their chances of success when investing in super stocks.