Last week, Nigerian stocks depreciated 1.1 per cent on account of profit-taking actions in stocks that have appreciated over the weeks.
A couple of fundamentally sound stocks with low pricing are still available even though the current uptrend in the market has pushed the valuation of many equities substantially up.
Investors will be on the lookout for the outstanding earnings reports of companies like Access Holding, which could determine the direction of trade this week.
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.
United Bank For Africa (UBA)
UBA tops this week’s pick for declaring an interim dividend per share of N0.50, which is 150 per cent higher than what it paid shareholders a year ago. The proposed cash reward followed the release of the lender’s half-year 2023 financial result, which saw net profit surge more than five times to N378.2 billion.
The qualification date is 26 September, while the payment date is 6 October.
The price-to-earnings (PE) of the lender is presently 1.2x, while its earnings per share (EPS) is N13.8.
Zenith Bank makes the list for announcing an interim dividend of N0.50 per share, which compares to the N0.30 it declared a year earlier. For the six months to June, the lender reported a 162 per cent jump in bottom line, taking after-tax profit to N291.7 billion.
Investors desiring to benefit from the largesse must own the bank’s shares by 22 September, the qualification date, while payment has been scheduled for 29 September.
Zenith Bank’s PE ratio is 2.6x, while its EPS is N12.9.
Ecobank Transnational Incorporated (ETI)
ETI features on this week’s stock selection for currently trading below its intrinsic value, which makes it cheap for investment.
The financial services group’s present PE ratio is 1.6x, while the EPS is N9.9. At 0.2x, its current price-to-book (PB) ratio is significantly below 1, making it more promising especially for value investors.
Lasaco Assurance makes this week’s list for currently trading well below its real value. The underwriter’s PE ratio is 2.2x, while the EPS is N0.9.
Learn Africa appears in the pick for currently trading substantially below its intrinsic value.
Its PE ratio is 3.9x at the moment, while its EPS is N0.9.
Axa Mansard makes the cut for currently trading below its real value. The insurer’s PE ratio is currently 2.5x, while the EPS is N1.6.
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