Top Stocks to Watch This Week: Lafarge Africa, BUA Cement & United Capital Shine as Q2 Earnings Near ️
As anticipation builds for the release of half-year (HY 2025) corporate results, investor sentiment continues to tilt positively in the Nigerian equities market. Despite the pressure from high fixed-income yields, the stock market showed resilience last week—gaining 0.8%—a signal that savvy investors are already strategically positioning ahead of Q2 earnings season.
This week, Premium Times, through a rigorous market watch, spotlighted five fundamentally sound stocks with strong dividend and capital appreciation potential. While this is not a buy/sell/hold recommendation, the picks serve as a guiding compass for investors looking to cherry-pick solid investment opportunities.
What Analysts Are Saying
According to analysts at United Capital, now is the time to:
• Position ahead of Q2 earnings, especially for companies with foreign exchange (FX) gains, disciplined cost management, and clear growth strategies.
• Focus on stocks likely to pay interim dividends.
• Expect some profit-taking by retail investors, which may temporarily slow the market’s upward momentum.
Featured Stock Picks for the Week
Lafarge Africa
• Why It Stands Out: Strong potential for HY 2025 dividend payment.
• Valuation Metrics:
• Price-to-Book Ratio: 2.7x
• Price-to-Earnings Ratio: 10.4x
• Relative Strength Index (RSI): 69.3% (showing investor interest)
BUA Cement
• Why It Stands Out: Currently trading near its 52-week low, suggesting a possible rebound. Also tipped for interim dividend prospects.
• Valuation Metrics:
• PB Ratio: 6.7x
• PE Ratio: 22.9x
• RSI: 53.6
United Capital Plc
• Why It Stands Out: Strong likelihood of dividend declaration for HY 2025.
• Valuation Metrics:
• PB Ratio: 3.2x
• PE Ratio: 2.3x (relatively low, indicating potential value)
First HoldCo
• Why It Stands Out: Trading below intrinsic value and near its 52-week low, presenting an entry point for value investors.
• Valuation Metrics:
• PB Ratio: 0.4x
• PE Ratio: 1.5x
• RSI: 45.1
️ Lasaco Assurance
• Why It Stands Out: Valued significantly below intrinsic value, offering room for upside.
• Valuation Metrics:
• PB Ratio: 1.4x
• PE Ratio: 7.7x
• RSI: 52.7
Key Takeaway for Investors
With half-year earnings season approaching, now is a strategic time to monitor companies with strong fundamentals, consistent dividend history, and resilience in the face of macroeconomic pressures. Cement and financial services are particularly in focus due to their potential for Q2 growth and interim dividend payouts.
⚠️ Reminder: Always consult your financial advisor before making investment decisions. This guide is not a financial recommendation but a stock investment insight to inform your research.
Stay ahead. Stay informed. Invest wisely.
As anticipation builds for the release of half-year (HY 2025) corporate results, investor sentiment continues to tilt positively in the Nigerian equities market. Despite the pressure from high fixed-income yields, the stock market showed resilience last week—gaining 0.8%—a signal that savvy investors are already strategically positioning ahead of Q2 earnings season.
This week, Premium Times, through a rigorous market watch, spotlighted five fundamentally sound stocks with strong dividend and capital appreciation potential. While this is not a buy/sell/hold recommendation, the picks serve as a guiding compass for investors looking to cherry-pick solid investment opportunities.
What Analysts Are Saying
According to analysts at United Capital, now is the time to:
• Position ahead of Q2 earnings, especially for companies with foreign exchange (FX) gains, disciplined cost management, and clear growth strategies.
• Focus on stocks likely to pay interim dividends.
• Expect some profit-taking by retail investors, which may temporarily slow the market’s upward momentum.
Featured Stock Picks for the Week
Lafarge Africa
• Why It Stands Out: Strong potential for HY 2025 dividend payment.
• Valuation Metrics:
• Price-to-Book Ratio: 2.7x
• Price-to-Earnings Ratio: 10.4x
• Relative Strength Index (RSI): 69.3% (showing investor interest)
BUA Cement
• Why It Stands Out: Currently trading near its 52-week low, suggesting a possible rebound. Also tipped for interim dividend prospects.
• Valuation Metrics:
• PB Ratio: 6.7x
• PE Ratio: 22.9x
• RSI: 53.6
United Capital Plc
• Why It Stands Out: Strong likelihood of dividend declaration for HY 2025.
• Valuation Metrics:
• PB Ratio: 3.2x
• PE Ratio: 2.3x (relatively low, indicating potential value)
First HoldCo
• Why It Stands Out: Trading below intrinsic value and near its 52-week low, presenting an entry point for value investors.
• Valuation Metrics:
• PB Ratio: 0.4x
• PE Ratio: 1.5x
• RSI: 45.1
️ Lasaco Assurance
• Why It Stands Out: Valued significantly below intrinsic value, offering room for upside.
• Valuation Metrics:
• PB Ratio: 1.4x
• PE Ratio: 7.7x
• RSI: 52.7
Key Takeaway for Investors
With half-year earnings season approaching, now is a strategic time to monitor companies with strong fundamentals, consistent dividend history, and resilience in the face of macroeconomic pressures. Cement and financial services are particularly in focus due to their potential for Q2 growth and interim dividend payouts.
⚠️ Reminder: Always consult your financial advisor before making investment decisions. This guide is not a financial recommendation but a stock investment insight to inform your research.
Stay ahead. Stay informed. Invest wisely.