Cheap stocks on NGX at year low for strategic entry

The Nigerian stock market last week continued its down trend as prices of stocks keep shedding weight, occasioned by profit taking in Guinness, Flourmills, Presco, MTN, Seplat, Dangote Cement and Airtel among others.

Year to date, the market has returned 2.93% with All Share Index and Market Capitalisation at 43,968.75points and N23.949 trillion respectively.

Most stocks have touched their 52 weeks low and some are tending towards their year low. This is creating more entry opportunities for discerning investors.

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:

ZENITH BANK

Zenith Bank is currently trading at N19.95 and has touched a high of N27.5 and a low of N18.90 in the past 52 weeks.

It is trading 27.45% away from its 52 weeks high of N27.50, which implies an uptrend potential of about 27% for the share price of the bank.

Going by its Book Value of N41.68, relative to its current price of N19.95, Zenith Bank is very cheap and embedded with growth potentials.

ACCESS HOLDINGS

Access Holdings is currently trading at the share price of N8.05. In the past 52 weeks, the stock has touched a high of N10.60 and a low of N7.50.

It is trading 24.06% away from its 52 weeks high of N10.60, which implies an uptrend potential of 24% for Access Holdings.

With the Book Value of N29.11, Access Holdings is considered very cheap, relative to its current share price of N8.05.

FBNH

The share price of FBHN is currently trading at N10.25. Within the last 52 weeks, the share price of the financial institution has touched a high of N12.60 and a low of N8.20.

It is trading 18.65% away from its year high of N12.60, which implies an uptrend potential of about 19% for FBNH.

With the Book Value of N24.89, relative to its current price of N10.25, FBNH is underpriced.

GTCO

The share price of GTCO is currently trading at N17.55 and it has touched a high of N28.05 and a low of N16.80 in the last 52 weeks.

It is trading 37.43% away from its year high of N28.05, which implies an uptrend potential of 37% for GTCO.

The Book Value of N29.66, relative to the current price of N17.55 implies that GTCO is underpriced.

UBA

UBA is currently trading at N7.2 with a 52 weeks high of N8.85 and a low of N6.55. It is trading 18.64% away from its 52 weeks high of N8.85, implying an uptrend potential of about 19% for UBA.

Considering its Book Value of N23.64, relative to its share price of N7.2, UBA is underpriced. A position in UBA has uptrend potentials.

FLOUR MILLS

Flour Mills is currently trading at N27.3 with a 52 weeks high of N41.45 and a low of N27.

It is trading 34.14% away from its 52 weeks high of N41.45, implying an uptrend potential of about 34% for Flour Mills.

Considering its Book Value of N47.82, relative to its share price of N27.3, Flour Mills of Nigeria is considered cheap and has uptrend potential.

PRESCO

Currently trading at N120.5, the share price of Presco has a year high of N200 and year low of N87.8.

There is an uptrend potential of 39.75% in the share price of Presco, relative to its 52 weeks high of N200.

GUINNESS

Currently trading at N74.65, the share price of Guinness has touched a high of N110 and a low of N36.3 in the past 52 weeks.

Guinness has an uptrend potential of 32.14%, relative to its 52 weeks high of N110.

NIGERIAN BREWERIES

The share price of Nigerian is currently trading at a year low of N37.4 and it has touched a high of N78.5 and a low of N36 in the past 52 weeks.

It is trading 52.36% away from its 52 weeks high of N78.5, suggesting an uptrend potential of about 52% for Nigerian Breweries.

FIDSON

Currently trading at N8.99, the share price of Fidson has a year high of N11.49 and year low of N5.45.

There is an uptrend potential of 21.76% in the share price of Fidson, relative to its 52 weeks high of N11.49.

OKOMU

Currently trading at N169.5, the share price of Okomu has a year high of N216.9 and year low of N127.8.

The company declared N2 interim dividend to shareholders for the period ended 30, September 2022.

There is an uptrend potential of 21.85% in the share price of Okomu Oil, relative to its 52 weeks high of N216.9.

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