GTCO, CAP & AIICO Lead This Week’s Stock Picks as Market Dips 3% — What Investors Should Know
Despite the release of strong Q3 and 9-month financial results, the Nigerian stock market closed last week on a negative note, falling 3%. Insurance stocks were hit the hardest, with all sector indexes declining.
Analysts at Meristem Securities warn that although a mild rebound is possible this week, investors should still expect profit-taking, especially in stocks that recently touched or exceeded their year highs following earnings releases.
To guide investors, PREMIUM TIMES compiled a list of stocks with solid fundamentals—not as a buy/sell recommendation, but as an investment guide for anyone planning strategic entries.
Why These Stocks Were Picked
PREMIUM TIMES used a rigorous market watch approach, selecting stocks based on:
• Strong fundamentals
• Attractive valuations
• Relative Strength Index (RSI) positions
• Net Profit Ratio (NPR)
• Price-to-Earnings (PE) multiples
These indicators help investors avoid random stock selection and instead take informed, strategic positions.
This Week’s Top Stock Picks
1️⃣ GTCO — Strongest Fundamentals This Week
Why it was picked:
GTCO is trading below its intrinsic value and maintains excellent profitability and valuation metrics.
• Net Profit Ratio (NPR): 71.8%
• Price-to-Earnings (PE): 4.5x
• RSI: 30.4 (approaching oversold territory)
2️⃣ CAP (Chemical & Allied Products) — Fairly Strong Fundamentals
Why it was picked:
Solid performance within its sector and decent valuation.
• NPR: 7.1%
• PE: 12.3x
• RSI: 63.5 (near neutral)
3️⃣ AIICO Insurance — Trading Below Intrinsic Value ️
Why it was picked:
Attractive valuation for long-term positioning.
• NPR: 6.3%
• PE: 8.3x
• RSI: 45.6
4️⃣ UBA — Strong Banking Fundamentals
Why it was picked:
UBA continues to outperform peers with efficient profitability and extremely low valuation metrics.
• NPR: 22.3%
• PE: 1.9x
• RSI: 41.4
5️⃣ Fidson Healthcare — Solid Pharma Fundamentals ⚕️
Why it was picked:
Strong metrics and trading at an attractive price level.
• NPR: 9.4%
• PE: 8.9x
• RSI: 24.7 (oversold zone — potential rebound)
Key Takeaway for Investors
The market may see mild gains this week, but volatility and profit-taking are still likely. These stock picks offer:
• Strong fundamentals
• Attractive entry points
• Better positioning for medium- to long-term appreciation
But remember
This is not a buy, sell, or hold recommendation.
Always consult your financial advisor before making investment decisions.
Despite the release of strong Q3 and 9-month financial results, the Nigerian stock market closed last week on a negative note, falling 3%. Insurance stocks were hit the hardest, with all sector indexes declining.
Analysts at Meristem Securities warn that although a mild rebound is possible this week, investors should still expect profit-taking, especially in stocks that recently touched or exceeded their year highs following earnings releases.
To guide investors, PREMIUM TIMES compiled a list of stocks with solid fundamentals—not as a buy/sell recommendation, but as an investment guide for anyone planning strategic entries.
Why These Stocks Were Picked
PREMIUM TIMES used a rigorous market watch approach, selecting stocks based on:
• Strong fundamentals
• Attractive valuations
• Relative Strength Index (RSI) positions
• Net Profit Ratio (NPR)
• Price-to-Earnings (PE) multiples
These indicators help investors avoid random stock selection and instead take informed, strategic positions.
This Week’s Top Stock Picks
1️⃣ GTCO — Strongest Fundamentals This Week
Why it was picked:
GTCO is trading below its intrinsic value and maintains excellent profitability and valuation metrics.
• Net Profit Ratio (NPR): 71.8%
• Price-to-Earnings (PE): 4.5x
• RSI: 30.4 (approaching oversold territory)
2️⃣ CAP (Chemical & Allied Products) — Fairly Strong Fundamentals
Why it was picked:
Solid performance within its sector and decent valuation.
• NPR: 7.1%
• PE: 12.3x
• RSI: 63.5 (near neutral)
3️⃣ AIICO Insurance — Trading Below Intrinsic Value ️
Why it was picked:
Attractive valuation for long-term positioning.
• NPR: 6.3%
• PE: 8.3x
• RSI: 45.6
4️⃣ UBA — Strong Banking Fundamentals
Why it was picked:
UBA continues to outperform peers with efficient profitability and extremely low valuation metrics.
• NPR: 22.3%
• PE: 1.9x
• RSI: 41.4
5️⃣ Fidson Healthcare — Solid Pharma Fundamentals ⚕️
Why it was picked:
Strong metrics and trading at an attractive price level.
• NPR: 9.4%
• PE: 8.9x
• RSI: 24.7 (oversold zone — potential rebound)
Key Takeaway for Investors
The market may see mild gains this week, but volatility and profit-taking are still likely. These stock picks offer:
• Strong fundamentals
• Attractive entry points
• Better positioning for medium- to long-term appreciation
But remember
This is not a buy, sell, or hold recommendation.
Always consult your financial advisor before making investment decisions.