Presco, Learn Africa, UBA top stocks to watch this week

Nigerian stocks were 0.22 per cent weaker last week as the market slipped into correction territory after weeks of successive gains.

As a great number of corporate results are still outstanding, the trajectory of price movement this week could be largely determined by how strong earnings reports that will be issued this week turn out to be.

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.

PRESCO

Presco tops this week’s pick on the basis of recording a more-than-a-half jump in net profit for the three months to March

The oil palm processor posted an after-tax of profit of N5.9 billion after revenue soared by over twofold to N19.6 billion.

LEARN AFRICA

Learn Africa appears on the selection for trading well below its intrinsic value, making it a good entry point for investors. The publisher’s price-to-earnings (PE) ratio at the end of the last trading session was N0.46, while its earnings per share (EPS) is 4.9x.

UNITED BANK FOR AFRICA (UBA)

UBA features on the pick this week for currently trading significantly below its real value. The PE ratio as of Friday was 2.3x, while the EPS is N3.49.

OANDO

Oando makes this week’s selection for currently trading well below its actual value

The stock has an EPS of N2.32 and a PE ratio of 2.7x.

READ ALSO: Cutix, United Capital, Oando top stocks to watch this week

FLOUR MILLS OF NIGERIA

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

The company’s PE ratio was 5.7x as of the end of the last trading session, while its EPS is N6.53.

FIDSON HEALTHCARE

Fidson features in the pack for currently trading well below its intrinsic value. The drug-maker’s PE ratio as of Friday was 2.1x with a EPS ratio of N5.35.

SOVEREIGN TRUST INSURANCE

Sovereign Trust makes the selection for currently trading significantly below its actual value, which makes it cheap for investment. Its PE ratio at the last trading session was 3.3x while its EPS is N0.09.