FCMB Group, C&I Leasing, Custodian Investment top stock pick this week

Last week, Nigerian stocks shed 0.5 per cent as sell pressure depressed the valuation of a couple of stocks.

However, a range of fundamentally sound stocks with low pricings abound still in the market, which individual investors and portfolio managers could be looking to leverage this week.

As the first quarter earnings season advances, more companies’ financial reports are expected, which could also determine the direction of trade this week.

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 need to involve your financial advisor before taking investment decisions.

FCMB Group

FCMB Group tops this week’s pick for currently trading well below its intrinsic value, brightening its chances of strong price appreciation in the future.

The price-to-earnings (PE) of the lender is presently 2.6x, while its earnings per share (EPS) is N1.56.

C & I Leasing

C & I Leasing appears on the list on the twin strength of trading significantly below its actual value and trading close to its lowest price in 52 weeks. Both factors offer a good entry point for investors seeking considerable price appreciation in the short term and those looking to take a long position in stocks with strong prospects.

The company’s PE ratio is 4.8x, while its EPS is N0.70.

Custodian Investment

Custodian Investment features on this week’s stock selection for currently trading below its intrinsic value.

The financial services group’s present PE ratio is 3.3x, while the EPS is N1.81.

Cornerstone Insurance

Cornerstone Insurance makes this week’s list for currently trading below its real value. The underwriter’s PE ratio is 3.6x, while the EPS is N0.18.

Dangote Sugar

Dangote Sugar appears in the pick for currently trading substantially below its actual value.

Its PE ratio is 3.9x at the moment, while its EPS is N4.83.

Fidson Healthcare

Fidson makes the cut for currently trading below its real value. The drugmaker’s PE ratio is currently 3.8x, while the EPS is N2.51.

AIICO

AIICO appears in the pick for currently trading below its intrinsic value, brightening its chances of good price appreciation in the future.

Its PE ratio currently stands at 4.7x, while its EPS is N0.12.