Nigerian stocks slid by 0.3 per cent last week amid sell-offs in bank stocks, continuing a downtrend that has weakened the year-to-date yield of the main equity index to 1.3 per cent.
The market is shifting away from the earnings season for full-year 2024, with the release of Geregu Power’s earnings report for the three months to March, which marked the start of the earnings season for Q1 2025.
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Following the prolonged downturn in the market, a couple of stocks are now weaker in price compared to the start of the year, offering good entry points to value investors.
“The upcoming Monetary Policy Committee (MPC) decision in May has led some investors to adopt a wait-and-see attitude towards the equities market,” said analysts at investment bank United Capital ahead of the week.
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“Concurrently, retail investors are engaging in profit-booking, resulting in selloffs that impede the consistent upward movement of stock prices,” they added.
PREMIUM TIMES has assembled some stocks with sound fundamentals, adopting rigorous approaches to save you the risk of picking equities at random for investment.
The pick, a product of an analytical market watch, offers a guide to entering the market and taking strategic positions in hopes that selected stocks will record reasonable price appreciation with the passage of time.
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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.
Lasaco Assurance
Lasaco Assurance tops the list this week for trading significantly below its intrinsic value, raising its prospects of good price appreciation in future. The price-to-book (PB) ratio of the insurer is 1.8x, while the price-to-earnings (PE) ratio is 2.3x. Its relative strength index (RSI) is 30.6.
Cornerstone Insurance
Cornerstone Insurance makes the cut for currently trading well below its underlying and book value. The underwriter’s PB ratio is 0.9x, while the PE ratio is 2.1x. Its RSI is 28.2.
Berger Paints
Berger Paints appears on the list for trading significantly below its intrinsic and book value. The company’s PB ratio is 1.9x, while its PE ratio is 8.9x. The RSI is 0.
Northern Nigeria Flour Mills (NNFM)
NNFM makes this week’s list for trading below its book and underlying value. The company’s PB ratio is 1.2x, while the PE ratio stands at 3.4x. Its RSI is 42.1.
Zenith Bank
Zenith Bank appears on the pick for currently trading below its underlying and book value. The PB ratio of the lender is 0.4x, while the PE ratio is 1.3x. Its RSI is 36.5.
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