Equities got off to an auspicious start for the new year last week with a yield of 2.66 per cent and a vast rally in buying interest driven by the latest debutant on the bourse, BUA Foods.
Watching out for stocks with robust fundamentals before deciding to invest remain the mantra of analysts and market-watchers, and that seems a veritable nugget for taking position before full-year earnings reports begin to be issued.
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 making investment decisions.
SOVEREIGN TRUST INSURANCE
Sovereign Trust tops this week’s pick by virtue of trading well below its real value, offering a good entry point for strategic investors seeking value investing. The underwriter’s price Monday stands at N0.26 per share, price-to-earnings of N0.44 and earnings per share (EPS) of N0.60.
Unity Bank makes the selection for trading well below its intrinsic value, which strengthens its prospect of price appreciation in future. Its opening price on Monday is N0.50 per share, with a PE ratio of 2.35 and EPS of N0.21.
GUARANTY TRUST HOLDING COMPANY (GTCO)
GTCO features on the list for trading near its lowest price in 52 weeks and below its actual value. It’s opening price is N25.9 per unit, with a PE ratio of 3.88 and EPS of N6.65.
Meyer appears on the pick on account of currently trading below its intrinsic value. Its EPS stands at N2.48, with a PE ratio of 0.22 at an opening price of N0.55 per share.
Julius Berger makes the selection for trading below its actual value, implying it stands a good chance of price appreciation in the future
Its opening price is N22.35, with EPS of N5.56 per unit and a PE ratio of 3.92.
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