Mutual Benefits, Access Holdings, Custodian Investment top stock pick this week

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Nigerian stocks shed 1.7 per cent last week on the back of profit-taking activities in a number of equities.

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Sell pressures on industrial goods stocks triggered the decline.

However, the main equity index has yielded 42.8 per cent year to date, putting it on track to deliver solid returns by year end.

“In our view, bargain-hunting is likely to shape market activity, particularly in fundamentally strong counters that now present more attractive entry points,” analysts at Meristem Securities had said in their outlook for the week.

“We highlight that profit taking could persist, especially in stocks that have recently tested or exceeded year highs,” 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 taking investment decisions.

Mutual Benefits Assurance

Mutual Benefits Assurance tops this week’s list for its currently strong fundamentals and for trading below its intrinsic value.

The net profit ratio (NPR) of the underwriter is 25.8 per cent, while the price-to-earnings (PE) ratio is 3.5x. Its relative strength index (RSI) is 44.7.

Access Holdings

Access Holdings makes the cut for trading below its intrinsic value.

The financial services group’s NPR is 13 8 per cent, while the PE ratio is 1.7x. Its RSI is 46.5.

Custodian Investment

Custodian Investment appears on the pick for its fairly strong fundamentals and for trading below its intrinsic value.

The NPR of the company is 34.7 per cent, while the PE ratio is 4.2x. Its RSI is 47.8.

Aradel Holdings

Aradel makes the selection by reason of its strong fundamentals.

Its NPR is 44.2 per cent, while its PE ratio is 7.9x. The RSI is 51.4.

Transcorp

Transcorp makes the cut for its currently sound fundamentals and for trading below its underlying value.

The company’s NPR is 22.2 per cent, while the PE ratio is 7.4x. The RSI is 44.5.