More corporate reports for the 2021 financial year are due this week through the end of February and the current uptrend in the market will likely hang on them for sustainability if they are generally impressive.
Stocks and sectors offering promise of strong return, dividend and scrip should be the focus of retail investors as bigger investors like fund managers hatch up plans ahead of new declarations of cash rewards.
One of such is the oil and gas sector which has yielded as high as 22.87 per cent January to date, and where the results of promising firms like Ardova and Oando are eagerly awaited.
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 but a stock investment guide. You may have to involve your financial advisor before taking investment decisions.
ECOBANK TRANSNATIONAL INCORPORATED (ETI)
Ecobank tops the pick for trading well below its intrinsic value, boosting its chances of recording a strong improvement in its share price in the near future. The lender’s earnings per share (EPS) as of Friday was 4.34x, with a price-to-earnings (PE) ratio is N2.88.
LEARN AFRICA
Learn Africa appears on this week’s selection for trading significantly below its actual value, which gives room for a reasonable appreciation of its share price in the future. The firm’s EPS at the end of the last trading session was N0.46 at a PE ratio of 3.26x. Its 52-week dividend yield is 10.14 per cent.
GUARANTY TRUST HOLDING COMPANY (GTCO)
GTCO makes the pick on the basis of its last week buyout of two subsidiaries of financial services group Investment One.
The branching out into pension fund administration and fund management could prove a turning point for the group at this point that earnings from its commercial banking arm are caving in to pressure from a depressed interest income.
CORNERSTONE INSURANCE
Cornerstone features on the list for currently trading well below its real value at the moment. It’s EPS is N0.18, while its PE ratio was 3.35x at the close of trade on Friday.
UNIVERSITY PRESS (UPL)
UPL makes the selection for trading much lower than its intrinsic value. The publisher’s PE ratio as of Friday was 3.45x with an EPS of N0.8.
UNITED BANK FOR AFRICA (UBA)
UBA features in the selection for presently trading below its actual value which makes it cheap for investment. The pan-African financial institution’s PE ratio at the close of the last trading session was 2.19x, while its PE ratio was N3.98.
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