UBA, Fidson, Wema are top stock choices this week

Nigerian stocks dropped slightly last week, losing 0.1 per cent as profit-taking affected the market. The pressure from selling industrial goods stocks caused the decline.

The main equity index has gained 56.5 per cent this year.

As the earnings season begins, price changes this week will likely depend heavily on half-year financial results from companies, especially large-cap stocks.

PREMIUM TIMES has put together some stocks with good fundamentals. This is to help you avoid randomly picking stocks for investment.

The selection comes from careful market analysis. It serves as a guide for entering the market and making strategic choices, hoping that the chosen stocks will see good price growth over time.

This is not a buy, sell, or hold suggestion but a stock investment guide. You should talk to your financial advisor before making any investment decisions.

United Bank for Africa (UBA)

UBA is on top this week due to its solid fundamentals. The bank's net profit ratio (NPR) is 11.6 per cent, and its price-to-earnings (PE) ratio is 5.7x. Its relative strength index (RSI) is 65.4.

Fidson

Fidson is included for its strong fundamentals. The NPR for the drug maker is 7.7 per cent, while the PE ratio stands at 21.3x. Its RSI is 15.7.

Wema Bank

Wema Bank is on the list due to its solid fundamentals and for trading below its true value. The NPR for the bank is 43.8 per cent, and its price-to-earnings (PE) ratio is 1.2x. The bank's relative strength index (RSI) is 56.1.