The Nigerian equities market closed in negative territory for the fourth consecutive week, with the All-Share Index falling by 0.9% last week.
This persistent decline reflects ongoing sell-offs in industrial goods, oil & gas, and banking stocks, all of which weighed heavily on overall performance.

As a result, the year-to-date (YTD) return on the main equity index has slipped to 2%, down from 5.4% just four weeks ago.
Market sentiment remains cautious as investors await a clearer picture of corporate earnings.

This week, attention will shift to the release of outstanding audited financial reports, especially from Nigeria’s Big 5 banks, as the first quarter of 2025 draws to a close.

FRONTPAGE NEWS Stock Watch: Value Picks with Strong Fundamentals

In response to the market’s volatility, FRONTPAGE NEWS has compiled a list of fundamentally strong stocks currently trading below their intrinsic value.
This guide aims to help investors make informed decisions and take strategic positions during a period of weak overall performance.

Please note: this is not a buy, sell, or hold recommendation. Investors are advised to consult a licensed financial advisor before making any investment decisions.

1. Access Holdings

Why it matters: Access Holdings is currently trading below its book value, offering potential upside for value investors.

• Price-to-Book (PB) Ratio: 0.4x

• Price-to-Earnings (PE) Ratio: 1x

• Relative Strength Index (RSI): 14.3

Interpretation: The extremely low RSI suggests the stock is deeply oversold, presenting a possible rebound opportunity.

2. Red Star Express

Why it matters: The logistics and courier services company is trading at a valuation lower than its true worth.

• PB Ratio: 1x

• PE Ratio: 9.9x

• RSI: 30.9

Interpretation: The stock sits near oversold territory, while still showing modest earnings performance, making it attractive for mid-term value investors.

3. Lasaco Assurance

Why it matters: Lasaco trades significantly below its intrinsic value based on current fundamentals.

• PB Ratio: 2.4x

• PE Ratio: 2.5x

• RSI: 39.0

Interpretation: With its strong earnings relative to price, Lasaco appears undervalued, especially among insurance sector stocks.

4. Guaranty Trust Holding Company (GTCO)

Why it matters: GTCO, a leading name in Nigeria’s financial services sector, shows strength despite the broader banking sell-off.

• PB Ratio: 0.8x

• PE Ratio: 1.3x

• RSI: 30.7

Interpretation: The group’s valuation presents a compelling case for long-term investors focused on banking sector resilience.

5. Sovereign Trust Insurance

Why it matters: The insurer remains undervalued and offers a relatively stable entry point for those watching the insurance space.

• PB Ratio: 0.8x

• PE Ratio: 4.3x

• RSI: 40.5

Interpretation: Trading close to fair RSI levels, the stock may provide steady appreciation potential.

6. Ikeja Hotel

Why it matters: As the hospitality sector gradually recovers, Ikeja Hotel remains a noteworthy pick for investors seeking early entry points.

• PB Ratio: 0.8x

• PE Ratio: 6.1x

• RSI: 39.1

Interpretation: While demand in the sector remains subdued, Ikeja Hotel’s pricing offers room for gradual value recovery.

Final Thoughts: Strategic Patience Pays

Despite current market weakness, pockets of value still exist for investors who take a disciplined, research-driven approach.
With many stocks trading below book value and showing technical oversold signals, this could be a good time to accumulate fundamentally strong positions.

That said, risk remains, especially amid earnings season and macroeconomic uncertainties.
Investors should stay updated on company disclosures, macro trends, and global events that may influence Nigeria’s capital markets.

Always speak with a qualified investment advisor before making portfolio adjustments.