The stock continues to trend higher thanks to growing interest from local investors, returning 13.8 percent last week and up 26.4 percent in just the first three weeks of the year.
This has made the Nigerian stock market the best performing stock market worldwide, with banking stocks as the driving force.
As earnings season approaches, strong corporate results, along with higher dividends, will likely play an important role in sustaining the current momentum, at least in the near term.
PREMIUM TIMES has rounded up some stocks with fundamentals and other potential, taking key analytical approaches to save you the hassle of picking random stocks to invest in.
The selection, the product of analytical observation of the market, offers a guide for entering the market and taking strategic positions in the hope that the shares will increase in value over time, particularly in the short term.
This is not a buy, sell or hold recommendation, but rather a stock investment guide. You may need to involve your financial advisor before making investment decisions.
Custodian Investment
Custodian Investment tops this week’s pick for currently trading well below its intrinsic value, increasing its chances of strong price appreciation in the future.
The company’s price-earnings (PB) ratio is currently 0.8 times, while its price-earnings (PE) is 3.4 times.
Mutual benefits guarantee
The Mutual Benefit Guarantee appears in the selection because it is currently trading substantially below its true value.
His PB ratio is 0.6x right now, while his PE ratio is 3.6x.
Learn Africa
Learn Africa makes the cut for currently trading below its true value. The publisher’s PB ratio is currently 0.7x, while the PE ratio is 6.1x.
Bonding Guarantee
Linkage Assurance is listed to be trading significantly below its true value.
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The insurer’s PB ratio is 0.7x, while its PE ratio is 4.9x.
FBN Holdings
FBN Holdings appears in this week’s stock pick because it is currently trading below its intrinsic value.
The financial services group’s current PB ratio is 0.7x, while the PE ratio is 3.4x.
Zenith Bank
Zenith Bank is on this week’s list for currently trading below its true value. The lender’s PB ratio is 0.7x, while the PE ratio is 0.7x.