Nigerian stocks advanced sharply last week, adding 4.3 per cent as investment fund found stronger interest in equities, notably bank and insurance shares, and positioning ahead of dividend announcements for the half-year period grew more intense.
“While we acknowledge the chance of occasional profit-taking, particularly in consumer goods stocks that have seen significant price increases recently, we believe this will be offset by continued interest in undervalued stocks that possess strong fundamentals and growth potential,” analysts at Meristem Securities had said, going into the week.
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With the earnings season already here, investors will be watching out keenly for half-year corporate results in the weeks ahead to decide what stocks promise the most value for money.
Equities with a reputation for paying attractive interim dividends might be up for increased activity this week, while undervalued equities with upside potential could prove a haven for value investors shopping for cheap stocks.
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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.
Aradel Holdings
Aradel tops this week’s list for its chances of announcing a stronger dividend for half-year 2025 (HY 2025). The price-to-book (PB) ratio of the energy company is 1.6x, while the price-to-earnings (PE) ratio is 8.5x. Its relative strength index (RSI) is 66.4.
NEM Insurance
NEM Insurance make the selection for trading significantly below its intrinsic value. The insurer’s PB ratio is 1.4x, while its PE ratio is 3.5x. The RSI is 91.4.
Nigerian Aviation Holding Company (NAHCO)
NAHCO appears on the pick for trading below its underlying value and for its likelihood of paying a good dividend for HY 2025. The PB ratio of the ground handling company is 7.8x, while the PE ratio is 12.3x. Its RSI is 70.7.
READ ALSO: Nigeria’s stock market closes week with N1.08 trillion gain
Jaiz Bank
Jaiz makes the cut for trading below its intrinsic value. The lender’s PB ratio is 2.2x, while the PE ratio is 5.5x. Its RSI is 66.7.
Fidson Healthcare
Fidson makes the cut for its prospects of announcing a good dividend for HY 2025. The pharmaceutical company’s PB ratio is 4x, while the PE ratio is 13.5x. Its RSI is 88.1.
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