Stock Picks of the Week: Lasaco, Transcorp & Access Holdings
The Nigerian stock market has been on a winning streak—appreciating for the 8th consecutive week, with last week’s gains alone at 4.3%. This bullish momentum is being driven by renewed investor interest in industrial goods, expectations of strong half-year (H1 2025) earnings, and a likely wave of interim dividend announcements.
With this in mind, Premium Times, in collaboration with market analysts, has identified a list of top stock picks that may hold promise for investors looking to take strategic positions this week. While these are not buy, sell or hold recommendations, they serve as an investment guide to help avoid random stock selection.
Here’s a detailed look at the highlighted stocks and why they made the list:
️ 1. Lasaco Insurance
• Why it stands out: It is currently trading below its intrinsic value.
• Valuation metrics:
• Price-to-Book (PB) Ratio: 0.5x
• Price-to-Earnings (PE) Ratio: 7.7x
• Relative Strength Index (RSI): 54
✅ Interpretation: Lasaco is considered undervalued and might be gearing up for a potential upward move.
⚡ 2. Transcorp
• Why it stands out: Despite its diversified business interests, it is significantly undervalued.
• Valuation metrics:
• PB Ratio: 1.7x
• PE Ratio: 5.3x
• RSI: 60.1
✅ Interpretation: Transcorp appears attractive from both value and momentum perspectives.
3. Access Holdings
• Why it stands out: A banking giant currently trading way below its underlying value.
• Valuation metrics:
• PB Ratio: 0.4x
• PE Ratio: 2.0x
• RSI: 71.2
✅ Interpretation: Strong fundamentals, and despite recent price movement (RSI above 70), it’s still considered undervalued by traditional metrics.
️ 4. Coronation Insurance
• Why it stands out: Like Lasaco, it is trading below intrinsic value.
• Valuation metrics:
• PB Ratio: 1.6x
• PE Ratio: 4.7x
• RSI: 53.7
5. Julius Berger
• Why it stands out: Chosen for its long-term price appreciation potential, particularly in infrastructure and construction.
• Valuation metrics:
• PB Ratio: 0.5x
• PE Ratio: 20.4x
• RSI: 25.7
✅ Interpretation: With an RSI this low, the stock may be oversold, signaling a potential bounce.
Market Outlook:
Analysts from Meristem Securities expect that the market may continue this positive trend in the short term due to:
• Imminent corporate earnings releases for H1:2025, and
• Lower yields in the fixed income market, which might encourage more investors to channel funds into equities.
Final Note:
These stocks were selected using fundamental analysis and valuation metrics, helping investors to avoid blind picks. However, remember:
This is not a financial recommendation. Always consult your financial advisor before making any investment decisions.
The Nigerian stock market has been on a winning streak—appreciating for the 8th consecutive week, with last week’s gains alone at 4.3%. This bullish momentum is being driven by renewed investor interest in industrial goods, expectations of strong half-year (H1 2025) earnings, and a likely wave of interim dividend announcements.
With this in mind, Premium Times, in collaboration with market analysts, has identified a list of top stock picks that may hold promise for investors looking to take strategic positions this week. While these are not buy, sell or hold recommendations, they serve as an investment guide to help avoid random stock selection.
Here’s a detailed look at the highlighted stocks and why they made the list:
️ 1. Lasaco Insurance
• Why it stands out: It is currently trading below its intrinsic value.
• Valuation metrics:
• Price-to-Book (PB) Ratio: 0.5x
• Price-to-Earnings (PE) Ratio: 7.7x
• Relative Strength Index (RSI): 54
✅ Interpretation: Lasaco is considered undervalued and might be gearing up for a potential upward move.
⚡ 2. Transcorp
• Why it stands out: Despite its diversified business interests, it is significantly undervalued.
• Valuation metrics:
• PB Ratio: 1.7x
• PE Ratio: 5.3x
• RSI: 60.1
✅ Interpretation: Transcorp appears attractive from both value and momentum perspectives.
3. Access Holdings
• Why it stands out: A banking giant currently trading way below its underlying value.
• Valuation metrics:
• PB Ratio: 0.4x
• PE Ratio: 2.0x
• RSI: 71.2
✅ Interpretation: Strong fundamentals, and despite recent price movement (RSI above 70), it’s still considered undervalued by traditional metrics.
️ 4. Coronation Insurance
• Why it stands out: Like Lasaco, it is trading below intrinsic value.
• Valuation metrics:
• PB Ratio: 1.6x
• PE Ratio: 4.7x
• RSI: 53.7
5. Julius Berger
• Why it stands out: Chosen for its long-term price appreciation potential, particularly in infrastructure and construction.
• Valuation metrics:
• PB Ratio: 0.5x
• PE Ratio: 20.4x
• RSI: 25.7
✅ Interpretation: With an RSI this low, the stock may be oversold, signaling a potential bounce.
Market Outlook:
Analysts from Meristem Securities expect that the market may continue this positive trend in the short term due to:
• Imminent corporate earnings releases for H1:2025, and
• Lower yields in the fixed income market, which might encourage more investors to channel funds into equities.
Final Note:
These stocks were selected using fundamental analysis and valuation metrics, helping investors to avoid blind picks. However, remember:
This is not a financial recommendation. Always consult your financial advisor before making any investment decisions.