Nigerian stocks depreciated by 0.9 per cent last week on account of sell-offs in industrial goods and bank stocks, leaving the year-to-date return of the bourse at 35 per cent.
Analysts have projected that the market is likely to be fairly bearish in the absence of key drivers until third-quarter corporate results start rolling in.
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The half-year audited reports of big lenders like UBA, GTCO, Access Holdings and Zenith are currently being awaited.
“We anticipate mixed trading sentiment as the market provides opportunity for medium to long-term investors in stocks that have recently declined, and activities in tier-1 banks are likely to remain a key focus for investors,” analysts at Meristem Securities said going into the week.
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“Expected corporate announcements, particularly H1:2025 earnings releases from Tier-1 banks, are likely to provide support for market activity,” 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.
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.
Zenith Bank
Zenith tops this week’s list for trading well below its intrinsic value and for its chances of paying a good dividend for the half-year (HY) 2025 period. The net profit ratio (NPR) of the lender is 26.2 per cent, while the price-to-earnings (PE) ratio is 2x. Its relative strength index (RSI) is 33.3.
AIICO Insurance
AIICO makes the selection for its fairly strong fundamentals. The insurer’s NPR is 6 per cent, while its PE ratio is 9.4x. The RSI is 51.1.
Fidson Healthcare
Fidson appears on the pick for trading below its underlying value. The NPR of the company is 9 per cent, while the PE ratio is 9.6x. Its RSI is 47.9.
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Vitafoam Nigeria
Vitafoam makes the cut for trading fairly below its intrinsic value. The company’s NPR is 13.5 per cent, while the PE ratio is 7.8x. Its RSI is 23.8.
Presco
Presco makes the cut for its currently sound fundamentals. The company’s NPR is 51 per cent, while the PE ratio is 11.8x. Its RSI is 61.2.
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