UBA, Transcorp, United Capital top stock pick this week

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.

For the second week running last week, Nigerian stocks retreated, in this case by 1.7 per cent, as sell pressure on industrial goods and oil & gas equities weighed on the benchmark index.

That continued the broad market correction that has been evident in trading in past weeks, which, thankfully, has opened up opportunities for investors seeking strategic entry points for investment in cheaper stocks.

“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,” analysts at Meristem Securities said in their outlook for the week.

Looking forward, trading activity could touch a higher level this week, buoyed by investors looking to position ahead as half-year 2026 wraps up.

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.

United Bank for Africa (UBA)

UBA tops this week’s pick on the basis of its strong fundamentals and for trading under its intrinsic value. The lender’s net profit ratio (NPR) is 11.6 per cent, while the price-to-earnings (PE) ratio is 5x. Its 14-day relative strength index (RSI) is 41.6.

Transcorp

Transcorp makes the selection, considering its strong fundamentals and for trading below its underlying value. The NPR of the conglomerate is 45.2 per cent, while the PE ratio is 4.8x. Its 14-day RSI is 45.

United Capital

United Capital appears in the pick by virtue of its robust fundamentals. The NPR of the financial services company is 51.2 per cent, while the PE ratio is 9.8x.

Okomu Oil

Okomu Oil makes the selection for its robust fundamentals. The NPR of the agribusiness company is 29.2 per cent, while the PE ratio is 22.6x. Its 14-day RSI is 0.

NASCON

NASCON makes the cut based on its attractive fundamentals. The NPR of the company is 23.9x, while the PE ratio is 16.6x. Its 14-day RSI is 62.9x.