Wole Olajide
The Nigerian stock market started the year 2023 with a positive vibration, although it closed the week with a marginal loss of 0.06%. Year to date, the market has returned -0.06% with the All Share Index and Market Capitalisation at 51,222.34 points and N27.899 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:
FBNH
First Bank of Nigeria Holdings is currently trading at N11.15 with 52 weeks high of N12.4 and a low of N8.2.
The recent rally in the share price of the Financial Institution is based on the renewed BUY interest by Femi Otedola, one of the substantial shareholders.
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 N11.15, FBNH is considered very cheap.
UBA
UBA is currently trading at N8 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 9.6%. 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, UBA is underpriced.
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 N39.9 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 N29.9 with a 52 weeks high of N41.45 and a low of N27.
It is trading 27.86% 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 N29.9, 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.
GTCO
The share price of GTCO is currently trading at N24 and it has touched a high of N28.05 and a low of N16.80 in the last 52 weeks.
It is trading 14.44% away from its year high of N28.05, which implies an uptrend potential of about 14% for GTCO.
The Book Value of N29.66, relative to the current price of N24 implies that GTCO is cheap.
ACCESS HOLDINGS
Access Holdings is currently trading at the share price of N9. In the past 52 weeks, the stock has touched a high of N10.60 and a low of N7.50.
It is trading 15.09% away from its 52 weeks high of N10.60, which implies an uptrend potential of 15% for Access Holdings.
With the Book Value of N29.11, Access Holdings is considered very cheap, relative to its current share price of N9.
ZENITH BANK
Zenith Bank is currently trading at N24.45 and has touched a high of N27.5 and a low of N18.90 in the past 52 weeks.
It is trading 11.09% away from its 52 weeks high of N27.50, which implies an uptrend potential of about 11% for the share price of the bank.
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.