Numerous outstanding earnings reports and dividend declarations from large-cap companies on the Nigerian Exchange last week suggest that the upward trend in the market could be sustained for a longer period.
The upcoming week’s trading direction may be influenced by these developments, especially as analysts and investors anticipate the earnings reports from major banks.
The market experienced a decline of 1.1% during the previous week due to profit-taking activities.
"Continuing earnings reports and dividend expectations should maintain investor interest in the market," analysts from Meristem Securities stated in their weekly outlook.
"While some investors might secure their profits after the recent increases, current trends show that investors are reallocating their funds within the market instead of exiting completely," they added.
Moving forward, favorable news regarding more robust earnings and dividend announcements from major companies is expected to enhance market performance in the coming week, provided no significant disruptions occur.
PREMIUM TIMES presents a curated list of stocks with strong fundamentals, employing thorough methodologies to mitigate the risks associated with arbitrary stock selections for investments.
This stock selection, based on analytical monitoring of the market, offers guidance for entering the market and adopting strategic positions with the belief that selected stocks will experience reasonable price increases over time.
It is important to note that this is not a recommendation to buy, sell, or hold; it serves merely as an investment guide. It is advisable to consult a financial advisor before making any investment decisions.
BUA Cement
BUA Cement tops the stock picks this week after witnessing an impressive 381.7% increase in annual net profit to reach N356 billion and announcing a nearly five-fold increase in its dividend for the fiscal year 2025. The company's net profit ratio (NPR) stands at 23.3%, with a price-to-earnings (PE) ratio of 23.6x. Its relative strength index (RSI) is currently at 100.
Dangote Cement
Dangote Cement also made the list due to its report of a twofold increase in annual net profit to N1 trillion, alongside a 50% rise in dividend for the 2025 fiscal year. The company's NPR is 23.2%, coupled with a PE ratio of 13.7x, with an RSI of 63.1.
Nigerian Exchange Group (NGX Group)
NGX Group has secured its place on the list for announcing a dividend of N2 per share and a bonus issuance of 1 new share for every 3 shares held by its shareholders. The company's PE ratio is at 18.9 with an RSI of 71.1.
MTN Nigeria
MTN Nigeria is included in the selection as it reported a remarkable 377.9% rise in after-tax profit and a dividend of N15 per share for 2025. The company has an NPR of 18.3% and a PE ratio of 18.4x, while its RSI is at 72.7.
Mutual Benefits Assurance
Mutual Benefits Assurance is recognized for being traded below its intrinsic value, featuring an NPR of 22.2 and a PE ratio of 4.8x. Its RSI currently stands at 52.5.
The compiled stock picks derive from an analytical evaluation designed to assist investors in strategic decision-making within the market.
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