Unilever, Stanbic IBTC, Cornerstone Insurance top stock pick this week

Nigerian stocks slightly depreciated last week, declining by 0.1 per cent amid profit-taking activities across all sectors except industrial goods.

The Insurance Index and the Oil & Gas Index were worst hit, dropping by 2.8 per cent and 2.6 per cent respectively. The main equity index has yielded 58.9 per cent since the beginning of the year.

This week, focus will be on the release of the bulk of third-quarter earnings reports as companies will be racing to do so to beat the 31 October deadline.

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.

Unilever Nigeria tops this week’s list on account of its strong fundamentals. The price-to-earnings (PE) ratio of the consumer goods firm is 18.8x. Its 14-day relative strength index (RSI) is 62.8.

Stanbic IBTC Holdings appears on the pick list on the basis of its attractive fundamentals and for trading below its intrinsic value. The PE ratio of the banking group is 5.8x, while the RSI is 47.7.

Cornerstone Insurance makes the selection for its strong fundamentals. The insurer’s PE ratio is 8x, while the RSI is 40.3.

Aradel Holdings makes the cut for its sound fundamentals. The PE ratio of the energy firm is 8x, while the RSI is 35.2.

Fidson makes the cut for its sound fundamentals. The P/E ratio of the pharmaceutical company is 18.5, while the RSI is 56.7.