Last week, a good number of corporate results were issued, many of them coming out strong and fairly impressive.
That in part helped the market capitalisation of the Nigerian exchange appreciate by 2 per cent.
Investors are awaiting the earnings reports of big-cap stocks like Dangote Cement, MTN Nigeria, BUA Cement and Nestle as well as those of four of the Big 5 lenders (United Bank for Africa, GTCO, Access Holdings and Zenith).
The financial performance of these stocks are likely to shape the direction of the market in the days ahead, meaning investors need to analyse their fundamentals in order to make investment decision in them ahead of their earnings release.
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 need to involve your financial advisor before taking investment decisions.
Cornerstone Insurance
Cornerstone Insurance tops this week’s pick for trading significantly below its intrinsic value and for reporting over six times surge in net profit to N15.7 billion for full-year 2023.
The price-to-earnings (PE) ratio of the underwriter is presently 2.2x, while its price-to-book (PB) ratio is 0.9x.
Linkage Assurance
Linkage Assurance makes the cut for trading below its real value and for recording 64 per cent increase in after-tax profit to N4.2 billion for full-year 2023. The insurer’s PE ratio is 3.8x, while the PB ratio is 0.54x.
FBN Holdings
FBN Holdings makes this week’s pick for currently trading significantly below its real value and for reporting a twofold jump in net profit for full-year 2023. The PE ratio of the financial services group is presently 3.1x, while its PB ratio is 0.56x.
NEM Insurance
NEM Insurance appears in the pick for currently trading below its intrinsic value. The insurer’s PE ratio is 2x, while its PB ratio is 0.8x.
Custodian Investment
Custodian Investment makes the list for trading well below its real value, brightening its chances of significant price appreciation in future. The PE ratio of the company is 3.5x, while its PB ratio is 0.9x.
United Bank for Africa (UBA)
UBA makes this week’s selection for trading well below its real value. Its PE ratio is currently 1.9x, while the PB ratio is 0.6x.
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