Access Holdings, Ecobank, Cornerstone Top Stocks To Watch

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As investors position ahead of half-year results, key considerations will revolve around strong earnings power and incentives like dividend and bonus issues.

Last week, Nigerian stocks were slightly up by 0.55 per cent after seeing a slide the previous week, underscoring the strong appeal of equities to investors at a time of upward rate adjustment.

As fund managers and investors position ahead of half-year results, the key considerations for making investment decisions will revolve around fundamentals and potential like strong earnings power and incentives like dividend and scrip issue.

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.

ACCESS HOLDINGS

Access Holdings tops this week’s pick on its recent push to expand its footprints in East Africa’s biggest economy by way of its planned buyout of Nairobi-based Sidian Bank.

The lender’s price-to-earnings (PE) ratio at the end of the last trading session was 2.1x, while its earnings per share (EPS) is N4.58.

ECOBANK TRANSNATIONAL INCORPORATED (ETI)

ETI makes the pack for currently trading substantially below its intrinsic value. The lender’s PE ratio as of Friday was 2.4x, while the EPS is N4.66.

CORNERSTONE INSURANCE

Cornerstone features on the pick this week for currently trading significantly below its real value. The underwriter’s PE ratio as of Friday was 3.4x, while the EPS is N0.18.

CUSTODIAN INVESTMENT

Custodian Investment appears on the selection for trading well below its intrinsic value, making it a good entry point for investors. The PE ratio as of Friday was 3.5x, while the EPS is N1.97.

LEARN AFRICA

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

The publisher has an EPS of N0.59 and a PE ratio of 3.7x at the last trading session.

VITAFOAM

Vitafoam 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 5.2x as of the end of the last trading session, while its EPS is N4.32.

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