Stocks continue to see an uptrend on the back of increasing local investors’ interest, returning 13.8 per cent last week and as much as 26.4 per cent in just the first three weeks of the year.
That has made the Nigerian equities market the best-performing bourse across the globe, with bank stocks as the driving force.
As the earnings season draws near, strong corporate results coupled with higher dividends will likely play a big role in sustaining the current momentum at least in the short term.
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, particularly in the short term.
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.
Custodian Investment
Custodian Investment tops this week’s pick for currently trading well below its intrinsic value, brightening its chances of strong price appreciation in the future.
The price-to-book (PB) ratio of the company is presently 0.8x, while its price-to-earnings (PE) is 3.4x.
Mutual Benefits Assurance
Mutual Benefits Assurance appears in the pick for currently trading substantially below its actual value.
Its PB ratio is 0.6x at the moment, while the PE ratio is 3.6x.
Learn Africa
Learn Africa makes the cut for currently trading below its real value. The publisher’s PB ratio is currently 0.7x, while the PE ratio is 6.1x.
Linkage Assurance
Linkage Assurance appears on the list for trading significantly below its real value.
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The underwriter’s PB ratio is 0.7x, while its PE ratio is 4.9x.
FBN Holdings
FBN Holdings features on this week’s stock selection for currently trading below its intrinsic value.
The financial services group’s present PB ratio is 0.7x, while the PE ratio is 3.4x.
Zenith Bank
Zenith Bank makes this week’s list for currently trading below its real value. The lender’s PB ratio is 0.7x, while the PE ratio is 0.7x.
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