UBA, Julius Berger, FCMB top stocks to watch this week

Nigerian stocks extend gain on demand for financial services stocks

Corporate results for both the third quarter and the nine-month period to September are beginning to be issued and each earnings season marks one of the most pivotal moments that spur sharp appreciation or decline in share prices depending on the performance of companies earnings.

As the season further unfolds and the release of financial reports gathers pace, shrewd investors will be watching out for key performance indicators for what next step to take.

PREMIUM TIMES has assembled 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 take 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. You may have to involve your financial advisor before taking investment decisions.

UNITED BANK FOR AFRICA (UBA)

UBA tops this week’s selection on posting reasonably stronger earnings and profit for the nine months to September, when profit leapt by more than one-third to N104.6 billion and turnover expanded 7.9 per cent.

UBA’s Earnings Per Share (EPS) stands at N1.50, while its Price-to-Earnings (PE) ratio is 2.31 per cent as of 07.54 WAT on Monday. Its unit price is N8.40.

JULIUS BERGER

Julius Berger makes the pack for trading below its intrinsic value, implying that its share price stands a good chance of rising well above its current value in the short term. The lender closed trade on Friday at N2.74 per unit, with a PE ratio of 2.29 and an EPS of N1.20.

FIRST CITY MONUMENT BANK (FCMB)

FCMB makes the pick for currently trading well below its real value, which brightens its prospects of appreciating considerably soon.

The stock has an EPS of N0.87 with a PE ratio of 3.55, while its price is N3.10.

FLOUR MILLS

Flour Mills features on the list by virtue of being priced below its intrinsic value. Its PE ratio is low at 4.50, making the stock, which sells at N29.10 per share cheap for investment.

MAY & BAKER

May & Baker features in this week’s selection for being priced below its actual value. Currently trading at N4.36 per share, the stock has an EPS of N0.62 with a PE ratio of 6.96.



FLOUR MILLS OF NIGERIA

Flour Mills appears on the list for trading below its real value. The stock was priced at N29.30 per unit on Friday with a PE ratio of 4.53 and an EPS of N6.47.

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