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This is not a buy, sell or hold recommendation but a stock investment guide.
Nigerian stocks sustained their gaining momentum last week, advancing 1.8 per cent to take their year-to-date return to 2.5 per cent. Trading statistics also showed a dramatic improvement in transaction volume on the back of increased interest in financial services stocks.
A good number of equities with potential for strong price appreciation are still available in the market, despite a considerable rise in the main equity index last year.
“Given the high interest rates in the fixed income and money markets, we expect some bearish undertone to persist in the equities market as fixed income biased investors take advantage of the high yields in the fixed income space,” analysts at United Capital had said in their outlook for the week.
“Fund managers and businesses may entertain mid-long-term (≥3 months) investment objectives, cherry-picking only sound equities with strong fundamentals and ongoing/pending corporate actions,” they added.
PREMIUM TIMES has assembled some 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 increase in value with the passage of time.
This is not a buy, sell or hold recommendation but a stock investment guide. You may need to involve your financial advisor before taking investment decisions.
Total Energies
Total Energies tops this week’s pick for currently trading significantly below its intrinsic value.
The company’s price-to-earnings (PE) is 7.3x, its relative strength index (RSI) is 23.4 and its price-to-book (PB) ratio is 2.2x.
E-Tranzact
E-Tranzact makes the cut for trading below its underlying value. The PE ratio of the firm is 21.5x, while its RSI is 0. The PB ratio is 4.4x.
United Bank for Africa (UBA)
UBA makes the selection for trading well below its intrinsic value. The lender’s PE ratio is 1.8, while its RSI ratio is 54.8. Its PB ratio is 0.5x.
Jaiz Bank
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Jaiz Bank appears on the list for trading well below its intrinsic value. The micro-lender’s PE ratio is 4.4x, while its RSI is 55.4. Its PB ratio stands at 3.4x.
Veritas Kapital Assurance
Veritas Kapital appears in the pick for currently trading below its intrinsic value. Its PE ratio is 2.5x at the moment, while its RSI is 60. The PB ratio of the insurer is 1.1x.
FCMB Group
FCMB Group makes this week’s list for currently trading below its underlying value. The financial services group’s PE ratio is 1.1x, and its RSI is 63.8. The PB ratio is 0.3x.
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