Fidson, Meyer, Red Star Express top stock pick this week

Nigerian stocks advanced by 1.8 per cent last week, inching close to returning 36 per cent this year, riding on a surging demand for energy stocks. Also in the course of the week, the benchmark index crossed the 100,000 basis point mark, the first time since July.

The financial services industry continued to dominate trade in volume terms even though banking, which is the main driver of activity, remains the sector index with the lowest year-to-date return at 19.5 per cent. That compares with oil & gas which has so far yielded 160.1 per cent.

“Looking forward, the equities market is expected to retain its buy interest as investors cherry-pick undervalued stocks,” analysts at investment bank United Capital had earlier said.

“However, given the high interest rates in the fixed income and money markets, we expect some bearish undertone to persist in the equities market as fixed income biased investors take advantage of the high yields in the fixed income space,” they added.

PREMIUM TIMES has assembled some stocks with fundamentals and other potential, adopting key analytical approaches to save you the hassle of randomly picking equities for investment.

The selection, a product of analytical market watch, offers a guide to entering the market and taking strategic positions in hopes that equities will increase in value with the passage of time.

This is not a buy, sell or hold recommendation but a stock investment guide. You may need to involve your financial advisor before taking investment decisions.

Fidson Healthcare

Fidson tops this week’s pick for currently trading significantly below its intrinsic value and close to its lowest price in 52 weeks, brightening its chances of strong price appreciation in the future. The drugmaker’s price-to-earnings (PE) is 9.3x, its relative strength index (RSI) is 29 and its price-to-book (PB) ratio is 1.6x.

Meyer

Meyer appears on the list for trading below its innate value. The firm’s PE ratio is 10.8x, while its RSI is 20. Its PB ratio stands at 1.5x.

Red Star Express

Red Star Express makes the cut for trading below its intrinsic value. The PE ratio of the company is 10.4x, while its RSI is 0. Its PB ratio is 2.3x.

John Holt

John Holt makes this week’s list for currently trading below its underlying value. The company’s PE ratio is 1x, and its RSI is 39.8. NEM Insurance’s PB ratio is 0.5x.

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University Press Limited

University Press appears in the pick for currently trading below its intrinsic value. Its PE ratio is 8x at the moment, while its RSI is 41.5. The PB ratio of the publishing firm is 0.4x.

Julius Berger

Julius Berger appears in the pick for currently trading below its intrinsic value. Its PE ratio is 15.6x at the moment, while its RSI is 0. The PB ratio of the construction giant is 1.5x.