Despite last week’s upward rate adjustment, Nigerian stocks were still up by over 2 per cent, a clear mark of resilience showing investors unflagging passion for equities even when yields from fixed income securities are equally if not more attractive.
Quite a number of stocks are still undervalued and carry the potential of price appreciation regardless of the fact that the broad market has been on an uptrend for several weeks now and should be seeing a plateau.
As investors await release of outstanding quarterly financial statements this week, the market could be relying on how strong they turn out to be to drive gain.
PREMIUM TIMES has assembled a number of stocks with fundamentals and other potential, adopting key analytical approaches to save you the hassle of randomly picking equities for investment.
The selection, a product of analytical market watch, offers a guide to entering the market and taking strategic positions in hopes that equities will gain value with the passage of time, particularly in the short term.
This is not a buy, sell or hold recommendation but a stock investment guide. You may have to involve your financial advisor before taking investment decisions.
FBN HOLDINGS
FBN Holdings tops this week’s pick on the basis of recording a considerably strong result for financial year 2021, which saw profit advance by 68.4 per cent as revenue climbed to N757.3 billion. The board of the financial services group has announced a dividend proposal of N0.35 per share for the period under review.
CUTIX
Cutix makes the pack for posting an expansion of 29.4 per cent in after-tax profit for full year 2021, translating to a net income of N807.9 million.
SOVEREIGN TRUST INSURANCE
Sovereign Trust features on the pick this week for currently trading significantly below its real value.
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The underwriter’s price-to-earnings (PE) ratio at the end of the last trading session was 2.9x, while its earnings per share (EPS) is N0.09.
NEM INSURANCE
NEM Insurance appears on the selection for trading well below its intrinsic value, making it a good entry point for investors. The PE ratio as of Friday was 4.4x, while the EPS is N0.9.
TRANSCORP
Transcorp makes this week’s selection for currently trading well below its actual value
The stock has an EPS of N0.4 and a PE ratio of 3.5x.
FIDELITY BANK
Fidelity Bank features on the pick for trading significantly below its real value, brightening it chances of seeing a good price appreciation in future.
The company’s PE ratio was 2.8x as of the end of the last trading session, while its EPS is N1.23.
JULIUS BERGER
Julius Berger makes the selection for currently trading below its intrinsic value. The construction firm’s PE ratio as of Friday was 5.11, while its EPS is N5.66.
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