Cheap Stocks at Year Low for Strategic Positioning

The stock market last week closed on a bearish note, occasioned by profit taking in 36 equities, thereby creating new entry opportunities for discerning investors.

Only 3 equities released their Q2 2022 results in the course of last week, which include: United Capital Plc, Africa Prudential Plc and Arbico Plc. We expect a lot of results to hit the market this week as most companies would want to meet up with the deadline of July ending.

Prices of most stocks have come down to their year low, thereby creating new entry opportunities for discerning investors.

We have always advised that investors to take position in fundamentally sound stocks as they stand the test of time.  As the market is anticipating the release of most Q2 2022 results, the best strategy is to take position before the release of these results.

To mention a few among cheap stocks with strong fundamentals and uptrend potentials, the following may be considered for strategic positioning:

ZENITH BANK

Zenith Bank on Friday touched a year low of N20.75. It is trading 24.55% away from its 52 weeks high of N27.50, which implies an uptrend potential of about 25% for the share price of the bank.

Going by its Book Value of N42.37, relative to its current price of N20.75, Zenith Bank is very cheap and embedded with growth potentials.

GTCO

The share price of GTCO is currently trading at N20.75 and it has touched a high of N30 and a low of N20.20 in the last 52 weeks.

It is trading 30.83% away from its year high of N30, which implies an uptrend potential of about 31% for GTCO.

The Book Value of N30.88, relative to the current price of N20.75 is a confirmation that GTCO is underpriced.

ACCESS HOLDINGS

The share price of Access Holdings Plc is currently trading at N9.1. In the past 52 weeks, the stock has touched a high of N10.60 and a low of N8.50.

It is trading 14.15% away from its 52 weeks high of N10.60, which implies an uptrend potential of about 14% for Access Holdings.

With the Book Value of N30.84, Access Holdings is considered very cheap, relative to its current share price of N9.10.

FBNH

The share price of FBHN is currently trading at N11.20. Within the last 52 weeks, the share price of the big elephant has touched a high of N12.90 and a low of N7.20.

It is trading 13.18% away from its year high of N12.90, which implies an uptrend potential of about 13% relative to its year high of N12.90.

With the Book Value of N24.51, relative to its current price of N11.20, FBNH is underpriced.

UBA

UBA is currently trading at N7.30 with a 52 weeks high of N8.85 and a low of N7.00. It is trading 17.51% away from its 52 weeks high of N8.85, implying an uptrend potential of about 18% for UBA.

Considering its Book Value of N24.14, relative to its share price of N7.30, UBA is grossly underpriced. A position in UBA has uptrend potentials.

FIDSON

Fidson is currently trading at N9.89 with a 52 weeks high of N11.49 and a low of N5.20. It is trading 13.93% away from its 52 weeks high of N11.49, implying an uptrend potential of about 22% for Fidson Healthcare.

Based on its impressive Q1 2022 result and past Q2 earnings history, Q2 2022 earnings per share of Fidson is projected grow beyond previous records. The expected earnings growth in its Q2 result is capable of driving future price growth.

FLOUR MILLS

Flour Mills is currently trading at N33 with a 52 weeks high of N41.45 and a low of N27.5.

It is trading 20.39% away from its 52 weeks high of N41.45, implying an uptrend potential of about 20% for Flour Mills.

Considering its Book Value of N47.78, relative to its share price of N33, Flour Mills of Nigeria is considered cheap and has uptrend potential.

GUINNESS

Currently trading at N90.50, the share price of Guinness has touched a high of N110 and a low of N29.05 in the past 52 weeks.

Guinness has an uptrend potential of 17.73%, relative to its 52 weeks high of N110.

PRESCO

Currently trading at N158.40, the share price of Presco with a year high of N200 and year low of N70.

There is an uptrend potential of 20.80% in the share price of Presco, relative to its 52 weeks high of N200.

Based on the past growth trajectory of the company, the Q2 2022 earnings per share of Presco is expected to grow beyond the previous year record.

NIGERIAN BREWERIES

The share price of Nigerian is currently trading at N49.75 and it has touched a high of N78.5 and a low of 39.9 in the past 52 weeks.

It is trading 36.62% away from its 52 weeks high of N78.5, suggesting an uptrend potential of about 37% for Nigerian Breweries.

Source: Cheap Stocks at Year Low for Strategic Positioning – StocksWatch (stocksng.com)

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