Last week, Nigerian stocks advanced by 0.5 per cent, driven by investors’ increased demand for consumer goods and oil & gas stocks.
Companies have started issuing their financial reports for the first nine months of the year, meaning that is likely to play a major role in the price movement of stocks in the next couple of weeks or months.
Energy stocks continue to lead other sectors in terms of performance, having yielded more than double their value at the beginning of the year.
Yet, there are still a number of stocks, notably bank stocks, with strong fundamentals and offering value for money.
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 an 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.
ALSO READ: FCMB Group, Lasaco Assurance, Ikeja Hotel top stocks pick this week
This is not a buy, sell or hold recommendation but a stock investment guide. You may need to involve your financial advisor before making investment decisions.
C & I Leasing
C & I Leasing tops this week’s pick for trading significantly below its underlying value.
The price-to-book (PB) ratio of the company is 0.4x; its price-to-earnings (PE) is 7.5x.
Mutual Benefits Assurance
Mutual Benefits makes this week’s list for trading significantly below its intrinsic value, brightening its chances of good price appreciation in the future. The underwriter’s PB ratio is 0.4x, while the PE ratio is 2.4x.
Northern Nigerian Flour Mills (NNFM)
NNFM features on this week’s list for currently trading below its intrinsic value. The company’s PB ratio is 0.8x, while the PE ratio is 4.1x.
Access Holdings
Access Holdings appears in the pick for trading close below its underlying value. Its PB ratio is 0.2x, while the PE ratio is 0.9x.
AIICO Insurance
AIICO Insurance appears on the list for trading significantly below its underlying value. The insurer’s PB ratio is 0.7x, while its PE ratio is 2.2x.
Zenith Bank
Zenith Bank makes the cut for currently trading below its intrinsic value. The underwriter’s PB ratio is currently 1.3x, while the PE ratio is 0.5x.
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