Ecobank, UPDC REIT, NEM Insurance top stocks pick for this week
A good number of Nigerian stocks still hold potential for strong return on investment although equities generally depreciated by 3.4 per cent last week.
The rate-setting meeting of the Central Bank of Nigeria’s monetary policy panel holds Monday (today) and Tuesday, with every possibility of a significant interest rate. The move may shift the balance of investment inflow from equity more into fixed-income securities, which investors often find more attractive whenever interest rates go higher.
Yet, dividend announcements from companies that posted reasonably strong results for last year are due any moment soon, a reason for fund managers and retail investors to plough more money into shares.
That could be a lever for price appreciation particularly for stocks with good fundamentals, but which have been undervalued for long because there has been no favourable catalyst to lift them.
PREMIUM TIMES has assembled some 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 increase in value as time goes on, particularly in the short term.
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.
Ecobank Transnational Incorporated (ETI)
ETI makes this week’s list for currently trading below its real value. The lender’s price-to-book (PB) ratio is 0.3x, while the price-to-earnings (PE) ratio is 1.3x.
UPDC Real Estate Investment Trust (UPDC REIT)
UPDC REIT features on this week’s stock selection for trading way below its intrinsic value.
ALSO READ: STOCK WATCH: Ecobank, Access Holdings top stocks pick this week
The trust’s current PB ratio is 0.5x, while the PE ratio is 3.9x.
NEM Insurance
NEM Insurance tops this week’s pick for currently trading well below its intrinsic value, brightening its chances of strong price appreciation in the future. The PB ratio of the underwriter is presently 0.8x, while its PE ratio is x.1.8
Fidelity Bank
Fidelity Bank appears in the selection for currently trading substantially below its actual value. Its PB ratio is 0.8x at the moment, while the PE ratio is 2.3x.
Julius Berger
Julius Berger makes the cut for currently trading below its real value. The construction giant’s PB ratio is currently 0.8x, while the PE ratio is 7x.
Prestige Assurance
Prestige Assurance appears on the list for trading significantly below its real value. The company’s PB ratio is 0.6x, while its PE ratio is 6.2x.
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A good number of Nigerian stocks still hold potential for strong return on investment although equities generally depreciated by 3.4 per cent last week.
The rate-setting meeting of the Central Bank of Nigeria’s monetary policy panel holds Monday (today) and Tuesday, with every possibility of a significant interest rate. The move may shift the balance of investment inflow from equity more into fixed-income securities, which investors often find more attractive whenever interest rates go higher.
Yet, dividend announcements from companies that posted reasonably strong results for last year are due any moment soon, a reason for fund managers and retail investors to plough more money into shares.
That could be a lever for price appreciation particularly for stocks with good fundamentals, but which have been undervalued for long because there has been no favourable catalyst to lift them.
PREMIUM TIMES has assembled some 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 increase in value as time goes on, particularly in the short term.
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.
Ecobank Transnational Incorporated (ETI)
ETI makes this week’s list for currently trading below its real value. The lender’s price-to-book (PB) ratio is 0.3x, while the price-to-earnings (PE) ratio is 1.3x.
UPDC Real Estate Investment Trust (UPDC REIT)
UPDC REIT features on this week’s stock selection for trading way below its intrinsic value.
ALSO READ: STOCK WATCH: Ecobank, Access Holdings top stocks pick this week
The trust’s current PB ratio is 0.5x, while the PE ratio is 3.9x.
NEM Insurance
NEM Insurance tops this week’s pick for currently trading well below its intrinsic value, brightening its chances of strong price appreciation in the future. The PB ratio of the underwriter is presently 0.8x, while its PE ratio is x.1.8
Fidelity Bank
Fidelity Bank appears in the selection for currently trading substantially below its actual value. Its PB ratio is 0.8x at the moment, while the PE ratio is 2.3x.
Julius Berger
Julius Berger makes the cut for currently trading below its real value. The construction giant’s PB ratio is currently 0.8x, while the PE ratio is 7x.
Prestige Assurance
Prestige Assurance appears on the list for trading significantly below its real value. The company’s PB ratio is 0.6x, while its PE ratio is 6.2x.
Support PREMIUM TIMES’ journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
Donate
TEXT AD: Call Willie – +2348098788999
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