Market Watch: Jaiz Bank, FCMB Group, and Julius Berger Lead Analysts’ Stock Picks This Week
Nigerian equities continued to show resilience, recording a 1% gain last week, pushing the year-to-date return to nearly 40%. The Oil and Gas sector led market activity, while analysts anticipate that trading momentum could strengthen further as investors gear up for the release of third-quarter (Q3) corporate results later this month.
According to market analysts at Meristem Securities, stronger deal flows into the Nigerian Exchange and a strategic shift into interest rate-sensitive stocks are expected to sustain the market’s positive sentiment. They also noted that improved liquidity conditions could trigger higher revaluation across select, fundamentally strong stocks.
In its weekly investment guide, Premium Times spotlighted five stocks — Jaiz Bank, FCMB Group, Julius Berger, NEM Insurance, and Africa Prudential — as the top equities with sound fundamentals and attractive entry points for investors.
⚠️ Disclaimer: This list is not a buy, sell, or hold recommendation but a guide to support informed investment decisions. Investors are advised to consult their financial advisors before taking any position.
Jaiz Bank
Jaiz Bank tops the list this week, trading significantly below its intrinsic value. The bank’s net profit ratio (NPR) stands at 29%, showing strong profitability relative to revenue. With a price-to-earnings (P/E) ratio of 6.5x, the stock appears undervalued when compared to its earnings potential. Its relative strength index (RSI) of 42.6 suggests that the stock is neither overbought nor oversold, offering a stable entry point for investors.
FCMB Group
Next on the list is FCMB Group, which is also trading below its fair value. The financial services conglomerate maintains an NPR of 8.1% and a P/E ratio of 4.6x, indicating that the stock is attractively priced. Its RSI of 48.8 shows moderate momentum, hinting at potential upside as market confidence builds ahead of the Q3 earnings season.
️ Julius Berger
Julius Berger earns a spot among the week’s top picks for its appealing price levels. Currently trading near its 52-week low, the construction giant offers an attractive entry point for investors seeking long-term value. The company’s NPR is 2.1%, while its P/E ratio stands at 18.4x. An RSI of 17.7 indicates that the stock is oversold, meaning a rebound could be on the horizon if sentiment improves.
️ NEM Insurance
NEM Insurance is highlighted for its solid financial fundamentals. The insurance firm’s NPR of 25.9% reflects strong operational efficiency and profitability. With a P/E ratio of 4.1x, the stock remains inexpensive relative to its earnings, while an RSI of 39.4 shows potential for steady growth as the insurance sector continues to attract investor interest.
Africa Prudential
Africa Prudential rounds off the list with its sound financial performance and consistent profitability. The company’s NPR is 36.6%, showing healthy profit margins, while its P/E ratio of 20.8x reflects investors’ confidence in its long-term value. With an RSI of 46.2, the stock shows balanced momentum, suggesting room for appreciation as market sentiment strengthens.
InvestingPort Insight
The market’s overall outlook remains cautiously optimistic. With improved liquidity, steady macroeconomic recovery, and anticipation of strong Q3 earnings, investors are positioning strategically in undervalued yet fundamentally sound stocks. However, given the absence of major catalysts and potential volatility ahead of earnings season, selective positioning and portfolio diversification remain key to navigating the weeks ahead.
Nigerian equities continued to show resilience, recording a 1% gain last week, pushing the year-to-date return to nearly 40%. The Oil and Gas sector led market activity, while analysts anticipate that trading momentum could strengthen further as investors gear up for the release of third-quarter (Q3) corporate results later this month.
According to market analysts at Meristem Securities, stronger deal flows into the Nigerian Exchange and a strategic shift into interest rate-sensitive stocks are expected to sustain the market’s positive sentiment. They also noted that improved liquidity conditions could trigger higher revaluation across select, fundamentally strong stocks.
In its weekly investment guide, Premium Times spotlighted five stocks — Jaiz Bank, FCMB Group, Julius Berger, NEM Insurance, and Africa Prudential — as the top equities with sound fundamentals and attractive entry points for investors.
⚠️ Disclaimer: This list is not a buy, sell, or hold recommendation but a guide to support informed investment decisions. Investors are advised to consult their financial advisors before taking any position.
Jaiz Bank
Jaiz Bank tops the list this week, trading significantly below its intrinsic value. The bank’s net profit ratio (NPR) stands at 29%, showing strong profitability relative to revenue. With a price-to-earnings (P/E) ratio of 6.5x, the stock appears undervalued when compared to its earnings potential. Its relative strength index (RSI) of 42.6 suggests that the stock is neither overbought nor oversold, offering a stable entry point for investors.
FCMB Group
Next on the list is FCMB Group, which is also trading below its fair value. The financial services conglomerate maintains an NPR of 8.1% and a P/E ratio of 4.6x, indicating that the stock is attractively priced. Its RSI of 48.8 shows moderate momentum, hinting at potential upside as market confidence builds ahead of the Q3 earnings season.
️ Julius Berger
Julius Berger earns a spot among the week’s top picks for its appealing price levels. Currently trading near its 52-week low, the construction giant offers an attractive entry point for investors seeking long-term value. The company’s NPR is 2.1%, while its P/E ratio stands at 18.4x. An RSI of 17.7 indicates that the stock is oversold, meaning a rebound could be on the horizon if sentiment improves.
️ NEM Insurance
NEM Insurance is highlighted for its solid financial fundamentals. The insurance firm’s NPR of 25.9% reflects strong operational efficiency and profitability. With a P/E ratio of 4.1x, the stock remains inexpensive relative to its earnings, while an RSI of 39.4 shows potential for steady growth as the insurance sector continues to attract investor interest.
Africa Prudential
Africa Prudential rounds off the list with its sound financial performance and consistent profitability. The company’s NPR is 36.6%, showing healthy profit margins, while its P/E ratio of 20.8x reflects investors’ confidence in its long-term value. With an RSI of 46.2, the stock shows balanced momentum, suggesting room for appreciation as market sentiment strengthens.
InvestingPort Insight
The market’s overall outlook remains cautiously optimistic. With improved liquidity, steady macroeconomic recovery, and anticipation of strong Q3 earnings, investors are positioning strategically in undervalued yet fundamentally sound stocks. However, given the absence of major catalysts and potential volatility ahead of earnings season, selective positioning and portfolio diversification remain key to navigating the weeks ahead.