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Business News of Monday, 27 June 2022

Source: www.premiumtimesng.com

PZ Cussons, GTCO, Africa Prudential top stocks to watch this week

Picture used to illustrate the story Picture used to illustrate the story

Profit-taking was a pressure point for Nigerian stocks in the week that just went by although the scramble moderated substantially compared to the penultimate week when equities generally fell by 2.7 percent.

But moments of downturn like this when most stocks are experiencing price drop are often the best time to invest because equities become cheaper as the market slips into market correction, which strategic investors usually watch out to take entry positions.

For instance, the investment of pension fund administrators in shares last week had already surpassed the N1 trillion mark as of last week.

That in all likelihood must have been informed by the urgency to take position in stocks that promise good yields and could pay attractive dividends as the beginning of the release of half-year earnings results hurries near.

PREMIUM TIMES has assembled a number of 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 gain value with the passage of time, particularly in the short term.

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

PZ CUSSONS

PZ Cussons tops this week’s pick on the strength of its full-year 2022 earnings report issued on Friday which saw after-tax profit jump almost four-fold to N6.4 billion even at a period when revenue only improved by 21 percent.

The price-to-earnings (PE) ratio of the fast moving consumer goods company at the end of the last trading session was 8.3x, while its earnings per share (EPS) was N1.52.

GUARANTY TRUST HOLDING COMPANY (GTCO)

GTCO’s share price fell on Friday to its lowest level in 52 weeks, making it a good entry point for investors seeking to leverage the promise of a stock that is cheap and fit for value investing at the same time.

The financial services group’s PE ratio at market close on Friday was 3.4x, while the EPS is N6.07.

AFRICA PRUDENTIAL

Africa Prudential features on the pick this week for trading at a 52-week low of N5.55 per share. The firm’s PE ratio as of Friday was 7.6x, while the EPS is N0.73.

LEARN AFRICA

Learn Africa makes this week’s selection for trading significantly below its intrinsic value

The company’s PE ratio at the last trading session was 3.8x, while its EPS is N0.59.

Transcorp appears on the week for trading well below its actual value at the moment, making it cheap for investment. The PE ratio as of Friday was 3.3x, while the EPS is N0.4.

UNITED BANK FOR AFRICA (UBA)

UBA features on the pick for trading significantly below its real value, brightening it chances of good price appreciation in future.

The lender’s PE ratio was 2.1x as of the end of the last trading session, while its EPS is N3.5.