Nigerian stocks saw a 1.7 per cent retreat last week, marking the second consecutive week of decline. This downturn was primarily driven by sell pressure on industrial goods and oil & gas equities, impacting the benchmark index.
However, this broad market correction has created strategic entry points for investors seeking cheaper, fundamentally sound stocks.
Analysts at Meristem Securities noted, "Following the recent market pullback, a number of fundamentally sound stocks are now trading at more attractive valuations, which could spur selective bargain hunting and support renewed buying interest." They anticipate a higher level of trading activity this week as investors position themselves ahead of the half-year 2026 wrap-up.
PREMIUM TIMES has identified several stocks with robust fundamentals, offering a guide for potential investment decisions. It is important to note that this is a stock investment guide, not a buy, sell, or hold recommendation, and investors should consult their financial advisor.
United Bank for Africa (UBA)
United Bank for Africa (UBA) is a top pick due to its strong fundamentals and current trading position below its intrinsic value. The lender reports a net profit ratio (NPR) of 11.6 per cent, a price-to-earnings (PE) ratio of 5x, and a 14-day relative strength index (RSI) of 41.6.
Transcorp
Transcorp also makes the selection, boasting strong fundamentals and trading below its underlying value. The conglomerate's NPR stands at 45.2 per cent, with a PE ratio of 4.8x. Its 14-day RSI is recorded at 45.
United Capital
United Capital is included in the picks, recognized for its robust fundamentals. The financial services company has an NPR of 51.2 per cent and a PE ratio of 9.8x.
Okomu Oil
Okomu Oil is selected for its robust fundamentals. The agribusiness company's NPR is 29.2 per cent, its PE ratio is 22.6x, and its 14-day RSI is 0.
NASCON
NASCON is highlighted based on its attractive fundamentals. The company's NPR is 23.9x, its PE ratio is 16.6x, and its 14-day RSI is 62.9x.
