The earnings’ season is here once more, with the half-year period already gone past and the publication of corporate results set to commence any moment soon.
The largely positive investor sentiment that dominated trade in that period drove a sweeping rally in Nigerian stocks January though June. That positive has made the country’s equity market the best-performing in the world in dollar terms.
If half-year corporate reports come out stronger than they were a year ago, the market could ride on that momentum to turn out a fabulous yield that could meet investors’ expectations in the short term.
“Nevertheless, we expect pockets of bargain hunting to emerge as investors gradually position ahead of the H1:2026 earnings season, particularly in fundamentally sound stocks that have become more attractively valued following the recent market pullback,” analysts at Meristem Securities said in their note to investors last week.
“We also expect companies with strong earnings prospects and attractive interim dividend potential to continue attracting selective buying interest.”
PREMIUM TIMES has assembled some stocks with sound fundamentals, adopting rigorous approaches to save you the risk of picking equities at random for investment.
The pick, a product of an analytical market watch, offers a guide to entering the market and taking strategic positions, with the expectation that selected stocks will record reasonable price appreciation with the passage of time.
This is not a buy, sell or hold recommendation but a stock investment guide. You may need to involve your financial advisor before taking investment decisions.
Zenith Bank
Zenith Bank tops this week’s pick on the basis of its strong fundamentals and for trading below its intrinsic value. The lender’s net profit ratio (NPR) is 21.8 per cent, while the price-to-earnings (PE) ratio is 4.4x. Its 14-day relative strength index (RSI) is 41.6.
Unilever
Unilever makes the selection for its strong fundamentals. The NPR of the consumer goods company is 14.8 per cent, while the PE ratio is 21.4x. Its 14-day RSI is 14.1.
BUA Cement
BUA Cement appears on the pick on the basis of its attractive fundamentals. The NPR of the cement manufacturer is 36.4 per cent, while the PE ratio is 25.5x. The 14-day RSI is 0.
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Coronation Insurance
Coronation Insurance makes the selection by virtue of its strong fundamentals. The NPR of the insurer is 19.8 per cent, while the PE ratio is 8.1x. Its 14-day RSI is 46.2.
UACN
UACN makes the cut based on its strong fundamentals. The NPR of the conglomerate is 2.3x, while the PE ratio is 26.2x. Its 14-day RSI is 53.
