Weekly Stock Picks: Total Energies, E-Tranzact, UBA Lead the List
Stock Market Overview:
Nigerian stocks maintained their positive trajectory last week, recording a 1.8% increase and pushing the year-to-date (YTD) return to 2.5%. Improved transaction volumes, driven by interest in financial services stocks, contributed significantly to the market’s performance.
Despite last year’s rise in the equity index, several stocks with robust growth potential are still available for strategic investment. However, analysts predict that high yields in fixed-income markets may create some bearish undertones in equities as investors shift focus to safer assets.
Key Highlights for the Week:
Analysts suggest that fund managers with mid-to-long-term objectives focus on equities with strong fundamentals and promising corporate actions. Below are the standout picks for this week:
1. Total Energies
• Why It Stands Out: Trades significantly below intrinsic value.
• Key Metrics:
• Price-to-Earnings (PE): 7.3x
• Relative Strength Index (RSI): 23.4
• Price-to-Book (PB): 2.2x
2. E-Tranzact
• Why It Stands Out: Undervalued stock.
• Key Metrics:
• PE: 21.5x
• RSI: 0
• PB: 4.4x
3. United Bank for Africa (UBA)
• Why It Stands Out: Trading well below intrinsic value.
• Key Metrics:
• PE: 1.8x
• RSI: 54.8
• PB: 0.5x
4. Jaiz Bank
• Why It Stands Out: Undervalued micro-lender stock.
• Key Metrics:
• PE: 4.4x
• RSI: 55.4
• PB: 3.4x
5. Veritas Kapital Assurance
• Why It Stands Out: Attractive pricing relative to value.
• Key Metrics:
• PE: 2.5x
• RSI: 60
• PB: 1.1x
6. FCMB Group
• Why It Stands Out: Undervalued financial services stock.
• Key Metrics:
• PE: 1.1x
• RSI: 63.8
• PB: 0.3x
Investment Advice:
These recommendations are based on analytical market insights and are not a direct buy, sell, or hold endorsement. Investors are advised to consult their financial advisors for personalized guidance.
Market Outlook:
While equities still offer opportunities for price appreciation, the ongoing preference for fixed-income securities due to high yields may influence market trends in the short term. However, sound fundamentals remain the cornerstone of profitable investments.
Stock Market Overview:
Nigerian stocks maintained their positive trajectory last week, recording a 1.8% increase and pushing the year-to-date (YTD) return to 2.5%. Improved transaction volumes, driven by interest in financial services stocks, contributed significantly to the market’s performance.
Despite last year’s rise in the equity index, several stocks with robust growth potential are still available for strategic investment. However, analysts predict that high yields in fixed-income markets may create some bearish undertones in equities as investors shift focus to safer assets.
Key Highlights for the Week:
Analysts suggest that fund managers with mid-to-long-term objectives focus on equities with strong fundamentals and promising corporate actions. Below are the standout picks for this week:
1. Total Energies
• Why It Stands Out: Trades significantly below intrinsic value.
• Key Metrics:
• Price-to-Earnings (PE): 7.3x
• Relative Strength Index (RSI): 23.4
• Price-to-Book (PB): 2.2x
2. E-Tranzact
• Why It Stands Out: Undervalued stock.
• Key Metrics:
• PE: 21.5x
• RSI: 0
• PB: 4.4x
3. United Bank for Africa (UBA)
• Why It Stands Out: Trading well below intrinsic value.
• Key Metrics:
• PE: 1.8x
• RSI: 54.8
• PB: 0.5x
4. Jaiz Bank
• Why It Stands Out: Undervalued micro-lender stock.
• Key Metrics:
• PE: 4.4x
• RSI: 55.4
• PB: 3.4x
5. Veritas Kapital Assurance
• Why It Stands Out: Attractive pricing relative to value.
• Key Metrics:
• PE: 2.5x
• RSI: 60
• PB: 1.1x
6. FCMB Group
• Why It Stands Out: Undervalued financial services stock.
• Key Metrics:
• PE: 1.1x
• RSI: 63.8
• PB: 0.3x
Investment Advice:
These recommendations are based on analytical market insights and are not a direct buy, sell, or hold endorsement. Investors are advised to consult their financial advisors for personalized guidance.
Market Outlook:
While equities still offer opportunities for price appreciation, the ongoing preference for fixed-income securities due to high yields may influence market trends in the short term. However, sound fundamentals remain the cornerstone of profitable investments.