Prestige Assurance, Fidelity Bank, Beta Glass top stock pick this week

Nigeria stocks advanced by 0.3 per cent this week, riding on the generally positive first-quarter earnings reports of quoted companies to boost sentiment. It marked the second consecutive week of appreciation, with the industrial goods index leading the charge across the sectors.

Interest in equity increased, with trade volume improving by 18.7 per cent, despite limited trading days on account of a labour day holiday on Thursday.

“Generally, investors await Monetary Policy Committee (MPC)’s decision in their upcoming meeting in May,” said analysts at United Capital ahead of the week.

“Concurrently, retail investors are engaging in profit-booking, resulting in selloffs that impede the consistent upward movement of stock prices,” they added.

PREMIUM TIMES has assembled some stocks with sound fundamentals, adopting rigorous approaches to save you the risk of picking equities at random for investment.

The pick, a product of an analytical market watch, offers a guide to entering the market and taking strategic positions in hopes that selected stocks will record reasonable price appreciation with the passage of time.

This is not a buy, sell or hold recommendation but a stock investment guide. You may need to involve your financial advisor before taking investment decisions.

Prestige Assurance

Prestige Assurance tops this week’s list for trading significantly below its intrinsic and book value. The price-to-book (PB) ratio of the underwriter is 0.7x, while the price-to-earnings (PE) ratio is 4.6x. Its relative strength index (RSI) is 49.7.

Fidelity Bank

Fidelity Bank makes the cut for currently trading well below its underlying and book value. The lender’s PB ratio is 1.1x, while the PE ratio is 2.5x. Its RSI is 62.5.

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Beta Glass

Beta makes this week’s list for trading below its underlying and book value. The company’s PB ratio is 0.9x, while the PE ratio stands at 4.8x. Its RSI is 100.

Zenith Bank

Zenith Bank appears on the list for trading below its intrinsic and book value. The bank’s PB ratio is 0.4x, while its PE ratio is 1.5x. The RSI is 51.8.

Aradel Holdings

Aradel Holdings appears on the pick for currently trading below its underlying value. The PB ratio of the company is 1.4x, while the PE ratio is 7.2x. Its RSI is 0.

Berger Paints

Berger Paints makes the cut for trading below its underlying value. The company’s PB ratio is 1.4x, while the PE ratio stands at 9.3x. Its RSI is 70.2.