Last week, the Nigerian stock market experienced a 1.1 percent decline due to profit-taking activities in stocks that had seen significant appreciation in recent weeks. However, there are still some fundamentally sound stocks with attractive pricing that investors can consider. Here are some of the top stocks to watch this week, based on their fundamentals and potential for short-term gains:
1. United Bank For Africa (UBA):
– UBA declared an interim dividend per share of N0.50, a 150 percent increase from the previous year.
– The bank’s half-year 2023 financial results showed a significant surge in net profit to N378.2 billion.
– Qualification date for the dividend is September 26, with the payment date set for October 6.
– UBA’s price-to-earnings (PE) ratio is currently 1.2x, and its earnings per share (EPS) is N13.8.
2. Zenith Bank:
– Zenith Bank announced an interim dividend of N0.50 per share, up from N0.30 in the previous year.
– The bank reported a 162 percent increase in after-tax profit to N291.7 billion for the first six months of the year.
– Shareholders must own the bank’s shares by September 22 (qualification date) to be eligible for the dividend, with payment scheduled for September 29.
– Zenith Bank’s PE ratio is 2.6x, and its EPS is N12.9.
3. Ecobank Transnational Incorporated (ETI):
– ETI is included in this week’s selection for trading below its intrinsic value, making it an attractive investment opportunity.
– The financial services group’s current PE ratio is 1.6x, and the EPS is N9.9.
– Its price-to-book (PB) ratio is currently at 0.2x, significantly below 1, which makes it appealing to value investors.
4. Lasaco Assurance:
– Lasaco Assurance is trading well below its intrinsic value, with a PE ratio of 2.2x and an EPS of N0.9.
5. Learn Africa:
– Learn Africa is currently trading substantially below its intrinsic value, with a PE ratio of 3.9x and an EPS of N0.9.
6. Axa Mansard:
– Axa Mansard is also trading below its intrinsic value, with a PE ratio of 2.5x and an EPS of N1.6.
Please note that this information is meant as a stock investment guide and not as specific buy, sell, or hold recommendations. It is advisable to consult with a financial advisor before making any investment decisions.
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