GTCO tops as AXA Mansard, NNFM, others make list of stocks pick this week
Last week, Nigerian stocks rose by 1.1 percent, mainly due to increased investor interest in bank stocks.
Currently, most equities are considered overvalued, given the significant 30 percent-plus increase the market has experienced year-to-date.
These high prices will likely deter investors seeking value for money until a market correction occurs.
The banking sector and, to a certain extent, the insurance industry, still have the largest number of low-priced stocks, indicating they are poised to dominate trading as the year progresses.
Here are some stocks with fundamentals and other potential, adopting key analytical approaches to save you the hassle of randomly picking equities for investment as compiled by Premium Times NG.
The selection, a product of an analytical market watch, offers a guide to entering the market and taking strategic positions in hopes that equities will increase in value with time.
This is not a buy, sell or hold recommendation but a stock investment guide. You may need to involve your financial advisor before making investment decisions.
Guaranty Trust Holding Company (GTCO)
GTCO tops this week’s pick for announcing an interim dividend per share of N1 per unit for half-year 2024, twice as much as what it paid shareholders a year ago.
The financial services group’s profit after tax for the period advanced more than three times to N905.6 billion, helped by a much-improved interest income.
The price-to-book (PB) ratio of the corporation is 0.6x; its price-to-earnings (PE) is 1.1x.
AXA Mansard Insurance
AXA Mansard makes this week’s list for trading significantly below its intrinsic value, brightening its chances of good price appreciation in the future. The underwriter’s s PB ratio is 0.8x, while the PE ratio is 2.1x.
Northern Nigerian Flour Mills (NNFM)
NNFM features on this week’s list for currently trading below its real value. The manufacturer’s PB ratio is 0.9x, while the PE ratio is 5.2x.
Jaiz Bank
Jaiz Bank appears in the pick for currently trading well below its actual value. Its PB ratio is 2x, while the PE ratio is 4.2x.
NPF Microfinance Bank
NPF Microfinance Bank appears on the list for trading significantly below its real value.
The company’s PB ratio is 0.9x, while its PE ratio is 6x.
Vitafoam
Vitafoam makes the cut for currently trading below its real value and for trading close to its lowest price in 52 weeks. The company’s PB ratio is currently 1.9x, while the PE ratio is 6x. …Continue Reading
