Earnings Season Spotlight: UBA, Mutual Benefits, Unilever Stand Out as Nigerian Stocks Slip
Market Snapshot
Nigerian equities recorded their first weekly loss of 2026, with the benchmark index dipping 0.4%. The pullback was largely driven by profit-taking in banking and consumer goods stocks, after earlier gains.
Market activity also slowed:
• Trading volume fell by 18.6%, showing investors are becoming more cautious.
• Attention is now shifting from price momentum to corporate earnings and dividend strength.
According to analysts at Meristem Securities, investors are beginning to position for:
• Companies with clear earnings visibility
• Stocks with reliable dividend potential
• Fundamentally strong businesses trading at reasonable valuations
Why These Stocks Were Selected
Premium Times’ weekly picks are not buy or sell recommendations, but a fundamental guide to help investors avoid random stock selection. The focus is on:
• Profitability
• Valuation (especially stocks trading below intrinsic value)
• Market momentum indicators like RSI
Top Stock Picks Explained
1️⃣ UBA (United Bank for Africa)
• Why it stands out: Strong fundamentals and deep undervaluation
• Key metrics:
• Net Profit Ratio (NPR): 23.8%
• P/E Ratio: 2.1x (very cheap)
• RSI: 53.6 (neutral, healthy)
• Investor takeaway: A value play with solid earnings strength.
2️⃣ Mutual Benefits Assurance
• Why it stands out: Trading below intrinsic value
• Key metrics:
• NPR: 15.3%
• P/E Ratio: 4.2x
• RSI: 65.1
• Investor takeaway: Insurance stock gaining attention due to valuation appeal.
3️⃣ Unilever Nigeria
• Why it stands out: Sound fundamentals and strong profitability
• Key metrics:
• NPR: 19.6%
• P/E Ratio: 16.9x
• RSI: 80.4 (overbought zone)
• Investor takeaway: Fundamentally strong, but price momentum suggests caution on entry timing.
4️⃣ Access Holdings
• Why it stands out: Undervalued banking group with steady earnings
• Key metrics:
• NPR: 13.8%
• P/E Ratio: 1.6x
• RSI: 49.9
• Investor takeaway: Deep value banking stock with room for re-rating.
5️⃣ Aradel Holdings
• Why it stands out: Exceptional profitability
• Key metrics:
• NPR: 53% (very strong)
• P/E Ratio: 8.7x
• RSI: 64.1
• Investor takeaway: Strong margins make it attractive for earnings-focused investors.
Big Picture for Investors
• The market is cooling after early-year gains
• Earnings season is now the main driver of positioning
• Investors are prioritizing quality, valuation, and sustainability, not hype
• Stocks with strong fundamentals and dividend prospects are likely to attract steady demand
In weeks like this, the market isn’t asking investors to be fast — it’s asking them to be selective.
Market Snapshot
Nigerian equities recorded their first weekly loss of 2026, with the benchmark index dipping 0.4%. The pullback was largely driven by profit-taking in banking and consumer goods stocks, after earlier gains.
Market activity also slowed:
• Trading volume fell by 18.6%, showing investors are becoming more cautious.
• Attention is now shifting from price momentum to corporate earnings and dividend strength.
According to analysts at Meristem Securities, investors are beginning to position for:
• Companies with clear earnings visibility
• Stocks with reliable dividend potential
• Fundamentally strong businesses trading at reasonable valuations
Why These Stocks Were Selected
Premium Times’ weekly picks are not buy or sell recommendations, but a fundamental guide to help investors avoid random stock selection. The focus is on:
• Profitability
• Valuation (especially stocks trading below intrinsic value)
• Market momentum indicators like RSI
Top Stock Picks Explained
1️⃣ UBA (United Bank for Africa)
• Why it stands out: Strong fundamentals and deep undervaluation
• Key metrics:
• Net Profit Ratio (NPR): 23.8%
• P/E Ratio: 2.1x (very cheap)
• RSI: 53.6 (neutral, healthy)
• Investor takeaway: A value play with solid earnings strength.
2️⃣ Mutual Benefits Assurance
• Why it stands out: Trading below intrinsic value
• Key metrics:
• NPR: 15.3%
• P/E Ratio: 4.2x
• RSI: 65.1
• Investor takeaway: Insurance stock gaining attention due to valuation appeal.
3️⃣ Unilever Nigeria
• Why it stands out: Sound fundamentals and strong profitability
• Key metrics:
• NPR: 19.6%
• P/E Ratio: 16.9x
• RSI: 80.4 (overbought zone)
• Investor takeaway: Fundamentally strong, but price momentum suggests caution on entry timing.
4️⃣ Access Holdings
• Why it stands out: Undervalued banking group with steady earnings
• Key metrics:
• NPR: 13.8%
• P/E Ratio: 1.6x
• RSI: 49.9
• Investor takeaway: Deep value banking stock with room for re-rating.
5️⃣ Aradel Holdings
• Why it stands out: Exceptional profitability
• Key metrics:
• NPR: 53% (very strong)
• P/E Ratio: 8.7x
• RSI: 64.1
• Investor takeaway: Strong margins make it attractive for earnings-focused investors.
Big Picture for Investors
• The market is cooling after early-year gains
• Earnings season is now the main driver of positioning
• Investors are prioritizing quality, valuation, and sustainability, not hype
• Stocks with strong fundamentals and dividend prospects are likely to attract steady demand
In weeks like this, the market isn’t asking investors to be fast — it’s asking them to be selective.