UACN, Wema, NEM top stock pick this week

Nigerian stocks reported a further slide last week, strained by profit-taking in energy and bank stocks.

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Equities are generally seeing a retreat as some investors exit their positions to take advantage of accumulated gains in a market that has delivered a 53.8 per cent yield so far this year.

“We expect the equities market to remain volatile this week, with the overall performance tilted towards the negative,” Meristem Securities said in a note ahead of the week.

“The mixed reaction to recent H1:2026 earnings could also keep investors cautious, with further profit-taking likely in stocks where valuations have moved ahead of our fair values,” it further said.

This week, investors’ expectations from the earnings release of most of the Big-5 lenders could boost trade.

UACN

UACN leads this week’s pick based on its strong fundamentals. The conglomerate’s net profit ratio (NPR) is 3.8 per cent, while the price-to-earnings (PE) ratio is 22.7x. Its 14-day relative strength index (RSI) is 51.6.

Wema Bank

Wema is selected for its strong fundamentals and for trading below its intrinsic value. The lender’s NPR is 30.5 per cent, while the PE ratio is 1.1x. Its 14-day RSI is 47.4.

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NEM Insurance

NEM Insurance appears on the pick based on its robust fundamentals and for trading below its intrinsic value. The underwriter’s NPR is 9.3 per cent, while the PE ratio is 5.9x. The 14-day RSI is 48.5.

Jaiz Bank

Jaiz Bank makes the selection based on its strong fundamentals. The non-interest bank’s NPR is 28.5 per cent, while the PE ratio is 12.4x. Its 14-day RSI is 47.7.

Nigerian Exchange Group

Nigerian Exchange Group makes the cut on the strength of its fundamentals. The company’s PE ratio is 20.7x. The 14-day RSI is 30.5.

Cornerstone Insurance

Cornerstone Insurance makes the cut on account of its strong fundamentals and its trading at its lowest price in 52 weeks, offering an attractive entry point for potential investors. The insurer’s NPR is 33.3 per cent, while the PE ratio is 8.2x. The 14-day RSI is 36.6.