NEM Insurance, FBN Holdings, NPF Microfinance Bank top stocks pick this week

The market last week veered off the expectation that the generally impressive corporate results for the first nine months of the year would boost stock performance.

Sell-offs largely in the shares of Aradel Holdings, Nigerian Exchange’s latest debutant, and BUA Cement dampened the confidence around companies’ financial performance that the market could have leveraged to sustain its momentum.

Consequently, the main share index depreciated by over 2 per cent.

Considering the improvement in the intrinsic value of many companies on account of the strong results, a number of stocks with prospects for investment now abound.

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 an 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.

NEM Insurance

NEM Insurance features on this week’s list for currently trading below its intrinsic value, making it a potentially strong investment for value investors. The price-to-book (PB) ratio of the underwriter is 0.9x, while the price-to-earnings (PE) ratio is 2.1x.

FBN Holdings

FBN Holdings appears in the pick for currently trading well below its innate value. The PB ratio of the lender is 0.4x, while the PE ratio is 1.6x.

NPF Microfinance Bank

NPF Microfinance Bank appears on the list for trading significantly below its intrinsic value. The microlender’s PB ratio is 0.7x, while its PE ratio is 11.5x.

Sovereign Trust Insurance

Sovereign Trust makes the cut for currently trading below its intrinsic value. The insurer’s PB ratio is currently 0.6x, while the PE ratio is 5.8x.

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Consumer Warehouse Group (CWG)

CWG makes this week’s list for trading below its intrinsic value. The company’s PB ratio is 0.5x, while its PE ratio is 8.1x.

C & I Leasing

C & Leasing features in this week’s pick for trading significantly below its innate value, brightening its chances of price appreciation. The PB ratio of the company is presently 0.2x, while its PE ratio is 7.3x.