Nigerian equities recorded their largest weekly gain this year last week, as investor confidence surged and demand for industrial goods stocks drove the benchmark index up by seven percent, analysts said. Less than two months into 2026, the market has already delivered a 25.3 percent return, buoyed by expectations of attractive dividend declarations and strong corporate earnings.
“The ongoing earnings releases and dividend expectations are likely to keep investors engaged, particularly in fundamentally strong tickers,” said analysts at Meristem Securities in a market outlook earlier this week. They also noted that recently revised equity allocation limits for pension fund administrators (PFAs) could further increase institutional participation.
In this context, PREMIUM TIMES has highlighted a selection of stocks demonstrating strong fundamentals, intended to guide investors considering strategic positions in the market. The list is not a buy, sell, or hold recommendation; investors are advised to consult financial advisors before taking any decisions.
United Capital tops the list this week, underpinned by robust financial metrics. The investment and asset management firm reported a net profit ratio (NPR) of 51.6 percent, a price-to-earnings (PE) ratio of 11.8x, and a relative strength index (RSI) of 40.6, reflecting solid profitability and moderate market momentum. Analysts noted that these indicators point to the company’s capacity to sustain growth even amid market volatility.
Fidelity Bank is featured for its strong fundamentals and trading below perceived intrinsic value. The lender posted an NPR of 19.1 percent, a PE ratio of 3.8x, and an RSI of 57.3. Market watchers said these metrics suggest the bank is efficiently managing earnings relative to its share price, making it a potential target for investors seeking value opportunities in the financial sector.
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Cornerstone Insurance also makes the weekly stock pick, reflecting the underwriter’s stable financial health. With an NPR of 14 percent, a PE ratio of 13.5x, and an RSI of 49.7, the firm is viewed as maintaining consistent profitability and operational efficiency in Nigeria’s insurance sector.
Other notable mentions include Africa Prudential, which recorded an NPR of 36.5 percent, a PE ratio of 2.4x, and an RSI of 52.5, highlighting strong fundamentals in the investment and asset administration space. Meanwhile, Unilever Nigeria was included for its enduring financial strength, posting an NPR of 11 percent, a PE ratio of 16.8x, and an unusually high RSI of 98.7, indicating significant price momentum relative to its trading history.
Analysts emphasised that the selections were based on rigorous evaluations of financial health, profitability, and market behaviour, rather than speculative market movements. The focus is on stocks that demonstrate sound fundamentals, resilience in earnings, and the potential for measured price appreciation over time.
Investors in the Nigerian stock market are navigating a year of strong performance, driven by a combination of corporate earnings, dividend expectations, and renewed institutional interest. Analysts caution, however, that market conditions remain dynamic, and careful evaluation of fundamentals and risk exposure remains crucial.
“The market’s recent gains are encouraging, but strategic stock selection based on fundamental analysis will remain essential for investors seeking sustainable returns,” Meristem Securities said.
This week’s stock guide reflects ongoing optimism in Nigerian equities while highlighting the importance of aligning investment decisions with careful research and professional financial advice.
