Why you should pitch your tent with fundamentally sound stocks

  • Opportunities in stocks with uptrend potentials

The Nigerian stock market last week closed on a bullish note with 6.88% growth, week on week. This is occasioned by renewed buy interest in equities by smart investors.

Year to date, the market has returned 11.33% with All Share Index and Market Capitalisation at 47,554.34 points and N25.902 trillion respectively.

Prices of some stocks have started looking up gradually, 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 N8.60. In the past 52 weeks, the stock has touched a high of N10.60 and a low of N7.50.

It is trading 18.87% away from its 52 weeks high of N10.60, which implies an uptrend potential of 19% for Access Holdings.

With the Book Value of N29.11, Access Holdings is considered very cheap, relative to its current share price of N8.60.

ZENITH BANK

Zenith Bank is currently trading at N21.90 and has touched a high of N27.5 and a low of N18.90 in the past 52 weeks.

It is trading 20.36% away from its 52 weeks high of N27.50, which implies an uptrend potential of about 20% for the share price of the bank.

Going by its Book Value of N41.68, relative to its current price of N21.90, Zenith Bank is very cheap and embedded with growth potentials.

GTCO

The share price of GTCO is currently trading at N20 and it has touched a high of N28.05 and a low of N16.80 in the last 52 weeks.

It is trading 28.7% away from its year high of N28.05, which implies an uptrend potential of about 29% for GTCO.

The Book Value of N29.66, relative to the current price of N20 implies that GTCO is underpriced.

UBA

UBA is currently trading at N7.3 with a 52 weeks high of N8.85 and a low of N6.55. 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 N23.64, relative to its share price of N7.3, UBA is underpriced. A position in UBA has uptrend potentials.

FBNH

The share price of FBHN is currently trading at N11. Within the last 52 weeks, the share price of the financial institution has touched a high of N12.40 and a low of N8.20.

It is trading 11.29% away from its year high of N12.60, which implies an uptrend potential of about 11% for FBNH.

With the Book Value of N24.89, relative to its current price of N11, FBNH is underpriced.

FLOUR MILLS

Flour Mills is currently trading at N28.1 with a 52 weeks high of N41.45 and a low of N27.

It is trading 32.21% away from its 52 weeks high of N41.45, implying an uptrend potential of about 32% for Flour Mills.

Considering its Book Value of N47.82, relative to its share price of N28.1, Flour Mills of Nigeria is considered cheap and has uptrend potential.

PRESCO

Currently trading at N110, the share price of Presco has a year high of N200 and year low of N87.8.

There is an uptrend potential of 45% in the share price of Presco, relative to its 52 weeks high of N200.

GUINNESS

Currently trading at N63, the share price of Guinness has touched a high of N110 and a low of N36.30 in the past 52 weeks.

Guinness has an uptrend potential of 42.73%, relative to its 52 weeks high of N110.

NIGERIAN BREWERIES

The share price of Nigerian is currently trading at N48.95 with a 52 weeks high of N78.50 and a low of N36.

It is trading 37.64% away from its 52 weeks high of N78.5, suggesting an uptrend potential of about 47% for Nigerian Breweries.

FIDSON

Currently trading at N8.85, the share price of Fidson has a year high of N11.49 and year low of N5.45.

There is an uptrend potential of 22.98% in the share price of Fidson, relative to its 52 weeks high of N11.49.

OKOMU

Currently trading at N167.50, the share price of Okomu has a year high of N216.9 and year low of N127.8.

There is an uptrend potential of 22.78% in the share price of Okomu Oil, relative to its 52 weeks high of N216.9.

Source: Why you should pitch your tent with fundamentally sound stocks – StocksWatch (stocksng.com)

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