Access Holdings, Africa Prudential, VFD Group top stock pick this week

Nigerian stocks are showing no sign of giving up their uptrend momentum any moment soon as their fourth successive weekly gain this month, reported last week, could serve as a herald of a solid start for the new year in the month ahead, with 2025 winding down in just a few days.

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All but the Insurance Index depreciated of the five sector indexes tracked by the exchange last week, pointing to a broadly robust investor sentiment.

“We expect increased position-taking ahead of 2025FY earnings releases particularly in fundamentally resilient counters, as investors realign portfolios before year-end,” analysts at Meristem Securities had projected ahead of the week.

“This outlook is further underpinned by expected gains in the consumer goods and banking sectors—both of which are benefitting from the more favourable macroeconomic environment, including softening inflationary pressures, a gradually stabilising FX market, and improving liquidity conditions.”

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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, with the expectation 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.

Access Holdings

Access Holdings tops this week’s list for trading below its intrinsic value and near its lowest share price in 52 weeks, which offers a good entry point to potential investors.

The net profit ratio (NPR) of the banking group is 13.8, while the price-to-earnings (PE) ratio is 1.5x. Its relative strength index (RSI) is 42.4.

Africa Prudential

Africa Prudential appears on the pick for trading below its strong fundamentals. The NPR of the company is 36.5, while the PE ratio is 18.6x. The RSI is 57.8.

VFD Group

VFD Group makes the selection for its solid fundamentals and for trading close to its 52-week low. The company’s NPR is 10.4 per cent, while the PE ratio is 9.9x. Its RSI is 69.7.

Universal Insurance

Universal Insurance makes the cut for its fairly strong fundamentals. The insurer’s NPR is 6.1 per cent, while the PE ratio is 6.5. The RSI is 54.1.

UBA

United Bank for Africa (UBA) makes the list for its currently solid fundamentals and for trading below its underlying value. The NPR of the lender is 23.8, while the PE ratio is 2x. The RSI is 61.6.