Last week, the valuation of stocks on the Nigerian Exchange rose by 1.16 per cent as more fund chased shares in affirmation of investors’ faith that the market could still deliver good yield beyond the earnings season.
The market has returned 5.17 per cent year to date and there are possibilities that that will be higher at year end.
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.
NASCON ALLIED INDUSTRIES (NASCON)
Nascon makes this week’s selection for trading at its lowest price in 52 weeks, making it relatively cheap for investors in search of stocks offering a good bargain. It is priced at N13.20 per unit, has price-to-earnings (PE) ratio of 12.42 and earnings per share (EPS) of N1.06.
Academy Press makes the list for currently trading well below its real value, meaning it stands a good chance of recording price appreciation. It is trading at N0.52, has a PE ratio of 1.83 and EPS of N0.26.
Sterling Bank appears in the pick for trading below its actual value and close to its lowest price in 52 weeks.
The bank’s EPS stands at N0.47 and its PE ratio at 3.22, while its unit price is N1.52.
CUSTODIAN INVESTMENT PLC
Custodian Investment appears in the selection on the basis of trading below its intrinsic value at the moment. The financial services group has EPS of N1.89 with a PE ratio of 4.12 and is priced at N7.80 per share.
Access Bank makes the list for trading much lower below its real value. Nigeria’s biggest bank by asset is priced at N9.05 per unit, has a PE ratio of 2.60 and EPS of N3.48.