Last week, the Nigerian stock market faced a big drop of 3.6 percent. Sell-offs in bank stocks hit the benchmark equity index hard. Analysts had expected this decline since stocks had been on the rise for some time.
Analysts at Meristem Securities said, "Investors are likely to continue to take advantage of recent price corrections to accumulate fundamentally sound stocks, particularly counters with strong earnings prospects and attractive valuations." They shared their outlook for the week.
As we look ahead, more investors may focus on stocks that pay dividends twice a year. This is likely as the market approaches the end of the second quarter.
PREMIUM TIMES has put together a list of stocks with strong fundamentals. They used careful analysis to help you avoid the risk of randomly choosing stocks to invest in.
This selection is based on a close watch of the market. It aims to guide you on how to enter the market and make smart choices, hoping that the chosen stocks will rise in value over time.
This is not a recommendation to buy, sell, or hold. It is a stock investment guide. You should consult your financial advisor before making any investment decisions.
Fidson
Fidson is at the top of this week’s list due to its solid fundamentals. The pharmaceutical company's net profit ratio (NPR) stands at 7.8 percent, while its price-to-earnings (PE) ratio is 21.9x. The 14-day relative strength index (RSI) is 32.2.
Africa Prudential
Africa Prudential made the list because of its strong fundamentals. The company has an NPR of 45.2 percent and a PE ratio of 17.4x. Its 14-day RSI is 35.5.
Access Holdings
Access Holdings is included in the list because of its solid fundamentals and because it is trading below its actual value. The banking group has an NPR of 14.1 percent and a PE ratio of 1.6x. The 14-day RSI is 32.4.
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