Nigerian stocks were 2.22 per cent weaker this week as profit-taking efforts weighed on the main stock index, lowering the valuation of a number of equities.
Interestingly, the price correction even makes some of the affected stocks more attractive for investment, considering that the resultant decline in their prices makes it a good entry point for those wanting to invest in them.
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.
FLOUR MILLS OF NIGERIA
Flour Mills tops this week’s selection for reporting a net profit of N28 billion for the financial year 2021, 9 per cent higher than the previous year’s after revenue surged by over a half to N1.2 trillion.
The board of the company has announced a dividend proposal of N2.15 per share for the period under review, which is 30 per cent more than that of 2020.
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NORTHERN NIGERIA FLOUR MILLS (NNFM)
NNFM makes the pick for recording a 15.5 per cent growth in net profit for the financial year 2021, bringing its bottom line for the period to N80.7 million. The firm has declared a dividend per share of N0.25 compared to the N0.15 it announced a year earlier.
UNITED BANK FOR AFRICA (UBA)
UBA appears on the selection for trading significantly below its real value. The lender’s PE ratio as of Friday was 2.22, while its EPS N3.49.
JULIUS BERGER
Julius Berger features on the pick this week for currently trading significantly below its real value.
The construction giant’s price-to-earnings (PE) ratio at the end of the last trading session was 4.2x, while its earnings per share (EPS) is N6.22.
UNITED CAPITAL
United Capital 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 6.6x, while the EPS is N1.98.
FIDSON HEALTHCARE
Fidson makes this week’s selection for currently trading well below its actual value
The stock has an EPS of N2.06 and a PE ratio of 5.3x.
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