As the earnings season is now behind the market, a crucial factor investors will likely consider before investing their money in stocks are with sound performance metrics, like profitability, earnings potential, diversification and expansion by way of mergers and acquisitions.
Stocks with such fundamentals and which are trading below their fair values are the way to go according to analysts.
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. You may have to involve your financial advisor before taking investment decisions.
Ardova features on this week’s pick for trading close to its lowest price in 52 weeks, making its current price a good entry point for potential investors. The stock is priced at N13.60 per unit.
Oando makes this week’s selection for trading significantly below its real value, making it cheap for investment. Its earnings per share (EPS) is N2.32 at a current price of N4.60. Its price-to-earnings (PE) ratio is 1.98.
Apart from trading below its value, Flour Mills offers strong prospects of earnings performance on the strength of its recent acquisition of stake in rival Honeywell Flour Mills. Its PE ratio is 4.46 while its EPS is N6.49. The stock is priced at N28.95.
Sterling Bank appears on this week’s list by virtue of trading well below its intrinsic value.
The lender’s EPS stands at N0.47 and its PE ratio at 3.14, while its unit price is N1.47.
NPF MICROFINANCE BANK
NPF MFB appears on this week’s pick for currently trading well below its actual value, making it cheap for investment. It is priced at N1.67, has a PE ratio of 4.62 and EPS of N0.36.
NEM makes the list for trading significantly below its real value. Nigeria’s third biggest insurance company by market value is priced at N2.05, has a PE ratio of 3.74 and EPS of N0.60.
Custodian Investment features on the selection for trading below its intrinsic value. The financial services company has a PE ratio of 4.07, EPS of N1.89 at a price of N7.79.
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