The stock market last week closed on a bullish note as investors have started taking position in stocks ahead the release of their Q2 results. Just like we have always advised, the best investment strategy is investing against expectation.
Just about three Q2 results have been released so far, which are Unilever, Living Trust Mortgage Bank and Infinity Trust Mortgage Bank. It is obvious that more Q2 results would be released this week. By next week, we should have most of the results, except for those that would release audited reports with interim dividend declaration which would come latest by the second week in August.
STOCKS TO WATCH
We have always advised that investors to take position in fundamentally sound stocks as they stand the test of time. As the market is anticipating the release of Q2 2022 results, the best strategy is to take position before the release of these results.
To mention a few among cheap stocks with strong fundamentals and uptrend potentials, the following may be considered for strategic positioning:
ACCESS HOLDINGS
The share price of Access Holdings Plc is currently trading at N9.20. In the past 52 weeks, the stock has touched a high of N10.60 and a low of N8.50.
It is trading 13.21% away from its 52 weeks high of N10.60, which implies an uptrend potential of about 13% for Access Holdings.
With the Book Value of N30.84, Access Holdings is considered very cheap, relative to its current share price of N9.20.
ZENITH BANK
Zenith Bank is trading below trading far below its intrinsic value. It closed on Friday at N22.20.
In the last one year, the share price of the financial institution has touched a high of N27.50 and a low of N21.25.
It is trading 19.27% away from its 52 weeks high of N27.50, which implies an uptrend potential of about 19% for the share price of the bank.
Going by its Book Value of N42.37, relative to its current price of N22.20, Zenith Bank is very cheap and embedded with growth potentials.
GTCO
The share price of GTCO is currently trading at N20.95 and it has touched a high of N30 and a low of N20.20 in the last 52 weeks.
It is trading 30.17% away from its year high of N30, which implies an uptrend potential of about 30% for GTCO.
The Book Value of N30.88, relative to the current price of N20.95 is a confirmation that GTCO is underpriced.
FBNH
The share price of FBHN is currently trading at N10.90. Within the last 52 weeks, the share price of the big elephant has touched a high of N12.90 and a low of N7.20.
It is trading 15.50% away from its year high of N12.90, which implies an uptrend potential of about 16% relative to its year high of N12.90.
With the Book Value of N24.51, relative to its current price of N10.90, FBNH is underpriced.
UBA
UBA is currently trading at N7.40 with a 52 weeks high of N8.85 and a low of N7.00. It is trading 16.38% away from its 52 weeks high of N8.85, implying an uptrend potential of about 16% for UBA.
Considering its Book Value of N24.14, relative to its share price of N7.40, UBA is grossly underpriced. A position in UBA has uptrend potentials.
PRESCO
Currently trading at N158.40, the share price of Presco with a year high of N200 and year low of N70.
There is an uptrend potential of 20.80% in the share price of Presco, relative to its 52 weeks high of N200.
Based on the past growth trajectory of the company, the Q2 2022 earnings per share of Presco is expected to grow beyond the previous year record.
NIGERIAN BREWERIES
The share price of Nigerian is currently trading at N55.85 and it has touched a high of N78.5 and a low of 39.9 in the past 52 weeks.
It is trading 28.85% away from its 52 weeks high of N78.5, suggesting an uptrend potential of 25.1% for Nigerian Breweries.
GUINNESS
Currently trading at N90.50, the share price of Guinness has touched a high of N110 and a low of N29 in the past 52 weeks.
Guinness has an uptrend potential of 17.73%, relative to its 52 weeks high of N110.
FIDSON
Fidson is currently trading at N9.41 with a 52 weeks high of N12 and a low of N5.20. It is trading 21.58% away from its 52 weeks high of N12, implying an uptrend potential of about 22% for Fidson Healthcare.
Based on its impressive Q1 2022 result and past Q2 earnings history, Q2 2022 earnings per share of Fidson is projected grow beyond previous records. The expected earnings growth in its Q2 result is capable of driving future price growth.
FLOUR MILLS
Flour Mills is currently trading at N33.2 with a 52 weeks high of N41.45 and a low of N27.5.
It is trading 19.90% away from its 52 weeks high of N41.45, implying an uptrend potential of about 20% for Flour Mills.
Considering its Book Value of N47.78, relative to its share price of N33.20, Flour Mills of Nigeria is considered cheap and has uptrend potential.