Stocks to watch for strategic positioning

The stock market last week closed on a bullish note, occasioned by renewed buy interests in stocks by smart investors. Investors have started taking position ahead the release of FY 2022 earnings of listed firms. In a matter of days, Q4 results of listed firms will start hitting the market.

Year to date, the market has returned 2.46% with the All Share Index and Market Capitalisation at 52,512.48 points and N28.602 trillion respectively.

Prices of stocks few number of stocks have started looking up, although most stocks are still trading far below their fair value.

We have always advised investors to take position in fundamentally sound stocks because they stand the test of time. Just to mention a few, the following stocks can be considered for strategic entry:

ACCESS HOLDINGS

Access Holdings is currently trading at the share price of N9.3. In the past 52 weeks, the stock has touched a high of N10.60 and a low of N7.50.

It is trading 12.26% away from its 52 weeks high of N10.60, which implies an uptrend potential of 12% for Access Holdings.

It has the capacity to surpass its 52 weeks high of 10.60 based on the sound fundamentals inherent in company.

With the Book Value of N29.11, Access Holdings is considered very cheap, relative to its current share price of N9.3.

FBNH

First Bank of Nigeria Holdings is currently trading at N11.6 with 52 weeks high of N12.4 and a low of N8.2.

It is trading to closer to its 52 weeks high of 12.4 and has the capacity to surpass it, should their Q4 result be good with increased dividend payout.

With the book value of N24.89, relative to its current share price of N11.6, FBNH is considered very cheap.

UBA

UBA is currently trading at N8.35 with a 52 weeks high of N8.85 and a low of N6.55.

It is trading very close to its 52 weeks high of N8.85 by 5.65%. UBA has capacity to surpass its 52 weeks high of N8.85 as it is trading far below its fair value.

The price of UBA is capable rising if their Q4 earnings is impressive with probable increase in dividend payout.

Considering its Book Value of N23.64, relative to its share price of N8.35, UBA is underpriced.

GTCO

The share price of GTCO is currently trading at N24.5 and it has touched a high of N28.05 and a low of N16.80 in the last 52 weeks.

It is trading 12.66% away from its year high of N28.05, which implies an uptrend potential of about 13% for GTCO.

The Book Value of N29.66, relative to the current price of N24.5 implies that GTCO is cheap.

ZENITH BANK

Zenith Bank is currently trading at N25.55 and has touched a high of N27.5 and a low of N18.90 in the past 52 weeks.

It is trading close to its 52 weeks high of N27.50 by 7.09%. Zenith Bank has the capacity to surpass its 52 weeks high of N27.50, based on the fact that they will pay at least final dividend of N2.80. 

Going by its Book Value of N41.68, relative to its current price of N24.45, Zenith Bank is cheap and embedded with growth potentials.

NIGERIAN BREWERIES

The share price of Nigerian Breweries is currently trading at N47 with a 52 weeks high of N62.8 and a low of N28.8.

It is trading 25.16% away from its 52 weeks high of N62.8, suggesting an uptrend potential of about 25% for Nigerian Breweries.

PRESCO

Currently trading at N137.5, the share price of Presco has a year high of N200 and year low of N94.5.

There is an uptrend potential of 31.25% in the share price of Presco, relative to its 52 weeks high of N200.

GUINNESS

Currently trading at N69.3, the share price of Guinness has touched a high of N110 and a low of N42.2 in the past 52 weeks.

Guinness has an uptrend potential of 37%, relative to its 52 weeks high of N110.

FLOUR MILLS

Flour Mills is currently trading at N30 with a 52 weeks high of N41.45 and a low of N27.

It is trading 27.62% away from its 52 weeks high of N41.45, implying an uptrend potential of about 28% for Flour Mills.

Considering its Book Value of N47.82, relative to its share price of N30, Flour Mills of Nigeria is considered cheap and has uptrend potential.

OKOMU

Currently trading at N165, the share price of Okomu has a year high of N216.9 and year low of N127.8.

There is an uptrend potential of 23.93% in the share price of Okomu Oil, relative to its 52 weeks high of N216.9.

Source: Stocks to watch for strategic positioning – StocksWatch (stocksng.com)

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