As the year winds down, companies are beginning to issue their earnings forecast for the quarter ahead, which to a considerable extent will give investors a view of things to come.
Yet, what will probably offer the best assurance for sound investment decisions at this time are sound fundamentals that can broaden companies earnings power and sources of income in the long term including diversification, expansion, mergers and acquisition deals among others.
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.
For a stock trading at N0.33 to have earnings per share (EPS) as high as N2.48 and a price-to-earnings (PE) ratio of 0.13, Meyer is definitely worth investing in. The stock is probably the most undervalued equity on the Nigerian Exchange, which makes it cheap for investment.
In August, the paint-maker declared an interim dividend of N1.50 at a time the company’s shares were trading at just N0.59 per unit.
Unity Bank features on this week’s pick for trading close to its lowest price in 52 weeks and for currently trading well below its real value, making its current price a good entry point for potential investors.
At the moment, the Unity Bank is the most undervalued bank stock, with a PE ratio of 2.05 and EPS of N0.21.
Cornerstone makes this week’s selection for trading significantly below its real value and for trading near its lowest price in 52 weeks, making it cheap for investment. Its PE ratio is 3.06 while its EPS is N0.16.
ECOBANK TRANSNATIONAL INCORPORATED
Ecobank appears on this week’s list by virtue of its strong financial results for the first nine months of this year, which saw the lender post a profit jump of 847 per cent compared to its figure a year earlier.
In addition, Ecobank is trading well below its actual value with EPS of N3.61 and a PE ratio of 2.51, which makes it cheap for investment.
Oando features on the selection for trading below its intrinsic value. The oil driller has a PE ratio of 2.12, EPS of N2.32 at a price of N4.93.