By virtue of generally strong corporate results for 2022, a good number of equities in the market are becoming attractive and priced low considered side by side with their earnings.
That seems to be the main impetus for increased activity last week, with transaction size surging by more than two times.
With the earnings season for fiscal year 2022 approaching its end and first-quarter financials beginning to be released, it is expected that the momentum of activity in the market will hang on how impressive enough financial results are to impress investors.
Investors looking to bargain hunt and take strategic positioning now have access to a basket of promising stocks, some of them listed below.
PREMIUM TIMES has assembled a number of 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 gain value with the passage of time, 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 tops this week’s pick on the strength of trading close to its lowest price in 52 weeks, which offers a strategic entry point to investors seeking stocks that offer opportunities for capital appreciation.
The price-to-earnings (PE) of the lender is currently 2x, while its earnings per share (EPS) is N5.4.
Dangote Sugar Refinery
Dangote Refinery appears on the list for currently trading significantly below its intrinsic value, meaning it has prospects of appreciating considerably in the short term.
The company’s PE ratio is 3.8x, while its EPS is N4.5.
Flour Mills Nigeria
Flour Mills Nigeria features on this week’s stock selection on the twin strength of trading close to its 52-week low and for currently trading below its intrinsic value.
The food company’s present PE ratio is 5.8x, while the EPS is N5.13.
United Bank For Africa (UBA)
UBA makes this week’s list for posting a 29 per cent increase in profit from N41.5 billion to N53.6 billion in the first quarter. The bank’s PE ratio is 1.8x, while the EPS is N4.84.
Custodian Investment
Custodian Investment appears in the pick for currently trading substantially below its actual value.
Its PE ratio is 3.1x at the moment, while its EPS is N1.81.
Fidson Healthcare
Fidson makes the cut for currently trading below its real value. The drugmaker’s PE ratio is currently 3.7x, while the EPS is N2.43.
CONOIL
Conoil appears in the pick for currently trading below its intrinsic value, brightening its chances of good price appreciation in the future.
Its PE ratio currently stands at 3.7x, while its EPS is N2.4.
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