Nigerian stocks experienced a slight depreciation last week, shedding 0.1 per cent as profit-taking activities weighed on the market, particularly impacting industrial goods stocks. Despite this, the main equity index has delivered a significant 56.5 per cent return year-to-date.

With the commencement of the earnings season, price movements this week are expected to be considerably shaped by the half-year financial results of companies, especially big-cap equities.

This week's stock picks are a product of analytical market watch, offering a guide to entering the market and taking strategic positions based on sound fundamentals. The expectation is that these selected stocks will record reasonable price appreciation over time.

United Bank for Africa (UBA) is a top selection this week, underpinned by its strong fundamentals. The bank's net profit ratio (NPR) stands at 11.6 per cent, while its price-to-earnings (PE) ratio is 5.7x. Its relative strength index (RSI) is 65.4.

Fidson Healthcare also makes the cut due to its strong fundamentals. The drug manufacturer recorded an NPR of 7.7 per cent, a PE ratio of 21.3x, and a relative strength index (RSI) of 15.7.

Wema Bank is included in the list, recognized for its robust fundamentals and for trading below its intrinsic value. The lender's NPR is 43.8 per cent, with a price-to-earnings (PE) ratio of 1.2x and a relative strength index (RSI) of 56.1.

Cornerstone Insurance appears on the pick for its strong fundamentals. The insurer's NPR is 9.6, its PE Ratio is 8.4, and its relative strength index (RSI) is 47.9.

Aradel Holdings completes the selection, also noted for its strong fundamentals. The company's NPR is 68.7 per cent, its PE ratio is 8.8x, and its relative strength index (RSI) is 41.2.

It is important to note that this is not a buy, sell, or hold recommendation but a stock investment guide. Investors are advised to involve their financial advisor before making investment decisions.