Bullish Start to 2026: Fidelity, NEM Insurance, CAP Lead This Week’s Top Stock Picks
This is an investment guide, not a buy, sell, or hold recommendation.
Market Overview: A Positive Opening for 2026
Nigerian equities kicked off the year on a strong note, posting a 1.9% gain last week, driven largely by renewed buying interest in insurance and consumer goods stocks.
All sector indices closed in positive territory, reflecting improving investor confidence as market participants reposition their portfolios for growth opportunities in the New Year.
According to Meristem Securities, the market is likely to remain mildly bullish in the near term:
“Overall, the market tone is expected to remain mildly bullish, supported by targeted buying in quality names.”
What’s Driving Market Activity Now?
• Portfolio rebalancing for 2026
• Selective buying of fundamentally strong stocks
• Focus on equities trading below intrinsic value
• Search for better entry points after recent rallies
This environment favors disciplined stock selection rather than random buying.
This Week’s Top Stock Picks (Investment Guide)
PREMIUM TIMES, using a data-driven and analytical market watch, highlighted the following stocks as strategic positioning opportunities, based on valuation metrics and fundamentals.
1️⃣ Fidelity Bank – Value Play in Banking
Fidelity tops this week’s list due to strong fundamentals and undervaluation.
• Net Profit Ratio (NPR): 19.1%
• Price-to-Earnings (P/E): 3.6x
• Relative Strength Index (RSI): 49.6
What it means: The bank is profitable, cheaply valued, and trading near neutral momentum levels — attractive for value-focused investors.
2️⃣ NEM Insurance – Deep Value Opportunity
NEM Insurance stands out for trading well below its intrinsic value.
• Net Profit Ratio (NPR): 21.2%
• P/E Ratio: 4.0x
• RSI: 14.9
What it means: Extremely low RSI suggests the stock may be oversold, presenting a potential rebound opportunity for patient investors.
3️⃣ CAP Plc – Consumer Goods Undervaluation
CAP Plc earns its spot for being undervalued with stable earnings.
• Net Profit Ratio (NPR): 11.6%
• P/E Ratio: 11.6x
• RSI: 35.2
What it means: The stock is trading below fair value and has room for upside as consumer demand stabilises.
4️⃣ Vitafoam – Fundamentally Sound Consumer Play
Vitafoam makes the list on the back of solid business fundamentals.
• Net Profit Ratio (NPR): 8.7%
• P/E Ratio: 8.4x
• RSI: 56
What it means: Balanced valuation with moderate momentum, suitable for medium-term positioning.
5️⃣ Stanbic IBTC – Strong Earnings, Fair Value
Stanbic IBTC rounds out the list due to its strong profitability and fair valuation.
• Net Profit Ratio (NPR): 34.5%
• P/E Ratio: 4.8x
• RSI: 44.1
What it means: High profitability and reasonable pricing make it a defensive banking play for cautious investors.
Key Takeaway for Investors
• The market is entering 2026 with positive momentum
• Stocks trading below intrinsic value are attracting attention
• Insurance, banking, and consumer goods remain key sectors to watch
• Investors are advised to combine fundamentals with timing, rather than chase prices
Always consult your financial advisor before making investment decisions.
This is an investment guide, not a buy, sell, or hold recommendation.
Market Overview: A Positive Opening for 2026
Nigerian equities kicked off the year on a strong note, posting a 1.9% gain last week, driven largely by renewed buying interest in insurance and consumer goods stocks.
All sector indices closed in positive territory, reflecting improving investor confidence as market participants reposition their portfolios for growth opportunities in the New Year.
According to Meristem Securities, the market is likely to remain mildly bullish in the near term:
“Overall, the market tone is expected to remain mildly bullish, supported by targeted buying in quality names.”
What’s Driving Market Activity Now?
• Portfolio rebalancing for 2026
• Selective buying of fundamentally strong stocks
• Focus on equities trading below intrinsic value
• Search for better entry points after recent rallies
This environment favors disciplined stock selection rather than random buying.
This Week’s Top Stock Picks (Investment Guide)
PREMIUM TIMES, using a data-driven and analytical market watch, highlighted the following stocks as strategic positioning opportunities, based on valuation metrics and fundamentals.
1️⃣ Fidelity Bank – Value Play in Banking
Fidelity tops this week’s list due to strong fundamentals and undervaluation.
• Net Profit Ratio (NPR): 19.1%
• Price-to-Earnings (P/E): 3.6x
• Relative Strength Index (RSI): 49.6
What it means: The bank is profitable, cheaply valued, and trading near neutral momentum levels — attractive for value-focused investors.
2️⃣ NEM Insurance – Deep Value Opportunity
NEM Insurance stands out for trading well below its intrinsic value.
• Net Profit Ratio (NPR): 21.2%
• P/E Ratio: 4.0x
• RSI: 14.9
What it means: Extremely low RSI suggests the stock may be oversold, presenting a potential rebound opportunity for patient investors.
3️⃣ CAP Plc – Consumer Goods Undervaluation
CAP Plc earns its spot for being undervalued with stable earnings.
• Net Profit Ratio (NPR): 11.6%
• P/E Ratio: 11.6x
• RSI: 35.2
What it means: The stock is trading below fair value and has room for upside as consumer demand stabilises.
4️⃣ Vitafoam – Fundamentally Sound Consumer Play
Vitafoam makes the list on the back of solid business fundamentals.
• Net Profit Ratio (NPR): 8.7%
• P/E Ratio: 8.4x
• RSI: 56
What it means: Balanced valuation with moderate momentum, suitable for medium-term positioning.
5️⃣ Stanbic IBTC – Strong Earnings, Fair Value
Stanbic IBTC rounds out the list due to its strong profitability and fair valuation.
• Net Profit Ratio (NPR): 34.5%
• P/E Ratio: 4.8x
• RSI: 44.1
What it means: High profitability and reasonable pricing make it a defensive banking play for cautious investors.
Key Takeaway for Investors
• The market is entering 2026 with positive momentum
• Stocks trading below intrinsic value are attracting attention
• Insurance, banking, and consumer goods remain key sectors to watch
• Investors are advised to combine fundamentals with timing, rather than chase prices
Always consult your financial advisor before making investment decisions.
