Top Stock Picks for This Week: Aradel, NEM, FCMB Group

Nigerian stocks went up by 0.9 percent last week. This was a recovery from the drop seen the week before, thanks to more investors showing interest in bank and oil and gas stocks. Now, the market's year-to-date gain stands at 57.3 percent.

Analysts at Meristem Securities say, "After the strong rally in recent months, investors may keep taking advantage of high prices to secure profits, especially in stocks that have seen significant gains this year."

PREMIUM TIMES has put together a list of stocks with good fundamentals. We used careful methods to help you avoid the risk of choosing stocks randomly.

This selection is based on a detailed market review. It gives guidance on how to enter the market and make smart choices, hoping that the chosen stocks will increase in value over time.

This is not a recommendation to buy, sell, or hold. You should talk to your financial advisor before making any investment decisions.

Aradel Holdings

Aradel Holdings is top of the list this week because of its strong fundamentals. The energy company shows a net profit ratio (NPR) of 57.5 percent. Its price-to-earnings (PE) ratio is 19.7 times. The 14-day relative strength index (RSI) is 48.8.

NEM Insurance

NEM Insurance is included for its strong fundamentals and because it is trading below its true value. The NPR for this insurer is 9.6 percent, while the PE ratio is 11.3 times. Its 14-day RSI stands at 62.4.

FCMB Group

FCMB Group makes the list due to its solid fundamentals and because it is also trading below its true value. The NPR for the banking group is 11.1 percent, with a PE ratio of 1.5 times. The 14-day RSI is 49.4.