Last week, Nigerian stocks shed 1.1 per cent as profit-taking efforts by investors weighed on equities, with bank stocks most affected. A couple of corporate actions, notably dividend declarations, were announced during the week, but the financials and the cash reward plans of three of the big lenders – Zenith, GTCO and UBA – are still being awaited.
With all the full-year earnings reports of companies almost in, attention will likely shift to the first-quarter corporate results, which could start coming in in the weeks ahead.
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.
C & I Leasing
C & I Leasing tops this week’s pick for currently trading significantly 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 0.4x, while its price-to-earnings (PE) is 7.3x.
Wema Bank
Wema makes this week’s list for proposing a dividend per share of N0.50 per share for full-year 2023, 40 per cent higher than that of the preceding year. The lender’s PB ratio is 0.9x, while the PE ratio is 4.5x.
Mutual Benefits
Mutual Benefits features on this week’s list for currently trading below its intrinsic value. The insurer’s present PB ratio is 0.4x, while the PE ratio is 2.6x.
Prestige Assurance
Prestige Assurance appears in the pick for currently trading well below its actual value.
Its PB ratio is 0.6x at the moment, while the PE ratio is 5.6x.
Custodian Investment
Custodian Investment appears on the list for trading significantly below its real value.
The financial services group’s PB ratio is 0.8x, while its PE ratio is 3.6x.
Access Holdings
Access Holdings makes the cut for currently trading below its real value. The financial services group’s PB ratio is currently 0.5x, while the PE ratio is 1.3x.
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