Airtel Africa, Ecobank and Stanbic Ibtc are the top stocks to watch this week

Sterling Bank and Sovereign Trust Assurance also made the list.

The Nigerian stock market rose 4.25% last week, with the NGX 30 (the index that tracks the top 30 stocks by liquidity and market capitalization) hitting an all-time high, confirming renewed investor confidence in shares.

A number of first quarter earnings reports were released and a few of them were surprisingly impressive, boosting confidence.

PRIME TIME has brought together a number of stocks with fundamentals and other potentials, taking key analytical approaches to save you having to pick haphazard stocks to invest in.

The selection, the result of market analysis, offers a guide to entering the market and taking strategic positions in the hope that stocks will rise in value over time, especially in the short term.

This is not a buy, sell or hold recommendation, but a stock investment guide. You may need to involve your financial adviser before making investment decisions.

AIRTEL AFRICA

Airtel Africa leads this week’s pick on the basis of recording an 82% jump in after-tax profit at $755 million for 2021.

The wireless operator’s revenue jumped 20.6% to $4.7 billion in the period.

TRANSNATIONAL ECOBANK INCORPORATED (ITE)

ETI appears on the selection for trading well below its intrinsic value. The lender’s earnings per share (EPS) at the end of the last trading session was N4.65, with a price-earnings (PE) ratio of 2.78x.

STANBIC PARTICIPATIONS IBTC

Stanbic IBTC makes this week’s pick to currently trade at its lowest price level in 52 weeks, making it a good entry point for investing.

The stock is priced at N33 per unit, with an EPS of N4.54 and a PE ratio of 7.71x.

SOVEREIGN TRUST INSURANCE

sovereign trust features on the pick to trade significantly below its true value, increasing its chances of seeing good price appreciation in the future.

The underwriter’s PE ratio was 3.03x at the end of the last trading session, while its EPS is N0.09.

UNIVERSITY PRESS PLC (UPL)

The UPL features in the pack are currently trading well below its intrinsic value. On Friday, the company’s PE ratio was 3.83x with an EPS ratio of N0.77.

STERLING BANK

Sterling Bank makes the selection for the trade currently significantly below its true value, which makes it cheap for investment. Its PE ratio in the last trading session was 3.01x while its EPS is N0.51.

Copyright Premium Times. Distributed by AllAfrica Global Media (allAfrica.com)., source English press service