- Why you should pitch your tent with fundamentally sound stocks
The stock market last week continued its southward journey, occasioned by profit taking in 39 equities. The All Share Index and Market Capitalisation declined by 0.44% week on week 49,475.42 points and N26.686 trillion respectively.
Most stocks have touched their 52 weeks low and some are tending towards their year low. This is creating new entry opportunities for discerning investors.
We have always advised investors on this platform to take position in fundamentally strong stocks because they stand the test of time. Just to mention a few, the following stocks can be considered for strategic entry:
ZENITH BANK
Zenith Bank is currently trading at N19.75 and has touched a high of N27.5 and N18.90 in the past 52 weeks.
It is trading 28.18% away from its 52 weeks high of N27.50, which implies an uptrend potential of about 28% for the share price of the bank.
Going by its Book Value of N40.52, relative to its current price of N19.75, Zenith Bank is very cheap and embedded with growth potentials.
ACCESS HOLDINGS
Access Holdings declared an interim dividend of 20 kobo for the Half Year 2022. Though, this is below the 30 kobo interim dividend the paid the previous year. This brought down the price of the stocks to N8.30 last week. This is creating more entry opportunity for discerning investors.
At the share price of N8.30. Access in the past 52 weeks, the stock has touched a high of N10.60 and a low of N8.
It is trading 21.7% away from its 52 weeks high of N10.60, which implies an uptrend potential of about 22% for Access Holdings.
With the Book Value of N30.18, Access Holdings is considered very cheap, relative to its current share price of N8.20.
GTCO
The share price of GTCO is currently trading at N19.70 and it has touched a high of N30 and a low of N18.90 in the last 52 weeks.
It is trading 34.33% away from its year high of N30, which implies an uptrend potential of 34% for GTCO.
The Book Value of N28.73, relative to the current price of N19.70 is a confirmation that GTCO is underpriced.
UBA
UBA is currently trading at N7.1 with a 52 weeks high of N8.85 and a low of N6.7. It is trading 19.77 % away from its 52 weeks high of N8.85, implying an uptrend potential of about 20% for UBA.
Considering its Book Value of N23.05, relative to its share price of N7.10, UBA is grossly underpriced. A position in UBA has uptrend potentials.
FBNH
The share price of FBHN is currently trading at N10. Within the last 52 weeks, the share price of the financial institution has touched a high of N12.90 and a low of N7.45.
It is trading 22.48% away from its year high of N12.90, which implies an uptrend potential of about 22% relative to its year high of N12.90.
With the Book Value of N24.70, relative to its current price of N10, FBNH is underpriced.
FLOUR MILLS
Flour Mills is currently trading at N30.30 with a 52 weeks high of N41.45 and a low of N27.
It is trading 26.9% away from its 52 weeks high of N41.45, implying an uptrend potential of about 27% for Flour Mills.
Considering its Book Value of N47.78, relative to its share price of N30.30, Flour Mills of Nigeria is considered cheap and has uptrend potential.
PRESCO
Currently trading at N142.60, the share price of Presco with a year high of N200 and year low of N73.
There is an uptrend potential of 28.7% in the share price of Presco, relative to its 52 weeks high of N200.
GUINNESS
Currently trading at N87.90, 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 20.09%, relative to its 52 weeks high of N110.
NIGERIAN BREWERIES
The share price of Nigerian is currently trading at N48.40 and it has touched a high of N78.5 and a low of 39.9 in the past 52 weeks.
It is trading 38.34% away from its 52 weeks high of N78.5, suggesting an uptrend potential of about 38% for Nigerian Breweries.
Source: Cheap Stocks for Strategic Entry – StocksWatch (stocksng.com)
