Market Pullback… but These 5 Stocks Stand Strong: This Week’s Top Picks Explained
Even though the Nigerian stock market slipped 1.7% last week due to profit-taking — especially in industrial stocks — the overall market is still very strong. The All-Share Index (ASI) has gained 42.8% year-to-date, showing that 2025 is still on track to end as a highly profitable year for investors.
Despite the temporary pullback, analysts expect bargain-hunting this week — meaning investors may begin buying fundamentally strong stocks that have become cheaper.
Below is a simplified breakdown of the 5 highlighted stock picks and why they were selected this week.
1. Mutual Benefits Assurance — Strong Fundamentals + Undervalued
Mutual Benefits tops the list because its market price is below its real (intrinsic) value, making it a potential bargain.
Key metrics:
• Net Profit Ratio (NPR): 25.8% → The company keeps 25.8k from every 100k revenue as profit.
• Price-to-Earnings (PE): 3.5x → Very low, suggesting undervaluation.
• Relative Strength Index (RSI): 44.7 → Not overbought; room for upward movement.
Why it matters: Strong profitability + low valuation = attractive entry point.
2. Access Holdings — Undervalued Banking Giant
Access Holdings was selected because it is also trading below intrinsic value, despite its large asset base and earnings strength.
Key metrics:
• NPR: 13.8%
• PE ratio: 1.7x → Extremely cheap.
• RSI: 46.5
Why it matters: Very low PE suggests the stock may be mispriced and could catch up.
3. Custodian Investment — Undervalued + Solid Fundamentals
Custodian also appears due to strong earnings and undervaluation.
Metrics:
• NPR: 34.7% → Strong profitability.
• PE ratio: 4.2x
• RSI: 47.8
Why it matters: The company is highly profitable yet not expensive.
4. Aradel Holdings — Strong Fundamentals
Aradel is on the list purely for very strong performance fundamentals, not undervaluation.
Metrics:
• NPR: 44.2%
• PE ratio: 7.9x
• RSI: 51.4
Why it matters: The business itself is strong and stable, with impressive profitability.
5. Transcorp — Strong Fundamentals + Undervaluation
Transcorp makes the list for having both strong fundamentals and trading below underlying value.
Metrics:
• NPR: 22.2%
• PE ratio: 7.4x
• RSI: 44.5
Why it matters: Good profitability, improving earnings, and attractive pricing.
⛔ Important Note
This list is not a buy, sell, or hold recommendation. It is an investment guide based on publicly available financial metrics. Always consider:
• Your risk appetite
• Your investment horizon
• Advice from your financial planner
Even though the Nigerian stock market slipped 1.7% last week due to profit-taking — especially in industrial stocks — the overall market is still very strong. The All-Share Index (ASI) has gained 42.8% year-to-date, showing that 2025 is still on track to end as a highly profitable year for investors.
Despite the temporary pullback, analysts expect bargain-hunting this week — meaning investors may begin buying fundamentally strong stocks that have become cheaper.
Below is a simplified breakdown of the 5 highlighted stock picks and why they were selected this week.
1. Mutual Benefits Assurance — Strong Fundamentals + Undervalued
Mutual Benefits tops the list because its market price is below its real (intrinsic) value, making it a potential bargain.
Key metrics:
• Net Profit Ratio (NPR): 25.8% → The company keeps 25.8k from every 100k revenue as profit.
• Price-to-Earnings (PE): 3.5x → Very low, suggesting undervaluation.
• Relative Strength Index (RSI): 44.7 → Not overbought; room for upward movement.
Why it matters: Strong profitability + low valuation = attractive entry point.
2. Access Holdings — Undervalued Banking Giant
Access Holdings was selected because it is also trading below intrinsic value, despite its large asset base and earnings strength.
Key metrics:
• NPR: 13.8%
• PE ratio: 1.7x → Extremely cheap.
• RSI: 46.5
Why it matters: Very low PE suggests the stock may be mispriced and could catch up.
3. Custodian Investment — Undervalued + Solid Fundamentals
Custodian also appears due to strong earnings and undervaluation.
Metrics:
• NPR: 34.7% → Strong profitability.
• PE ratio: 4.2x
• RSI: 47.8
Why it matters: The company is highly profitable yet not expensive.
4. Aradel Holdings — Strong Fundamentals
Aradel is on the list purely for very strong performance fundamentals, not undervaluation.
Metrics:
• NPR: 44.2%
• PE ratio: 7.9x
• RSI: 51.4
Why it matters: The business itself is strong and stable, with impressive profitability.
5. Transcorp — Strong Fundamentals + Undervaluation
Transcorp makes the list for having both strong fundamentals and trading below underlying value.
Metrics:
• NPR: 22.2%
• PE ratio: 7.4x
• RSI: 44.5
Why it matters: Good profitability, improving earnings, and attractive pricing.
⛔ Important Note
This list is not a buy, sell, or hold recommendation. It is an investment guide based on publicly available financial metrics. Always consider:
• Your risk appetite
• Your investment horizon
• Advice from your financial planner
