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1 Consumer Goods Stock Up 37.4% From Its 52-Week Low With Plenty Upside

The NGX index is up by 6% on a Year-to-date with 3 stocks already posting double-digit returns above 50%; International Energy Insurance Plc (up by 160.98%), John Holt (66.25%) and NNFM (58.54%).

While this looks like everyone’s dream in the stock market, I don’t think they’d be the winner for 2023 as it’s too early for such a call.

Personally, I am not in this market to be right on any stock, as long as I am making consistent returns year after year by following the 3 simple trading steps I teach in my trading course, I can boldly say that I am a profitable stock trader.

If you have been asking what these 3-steps are, they are:

  • Finding beaten-down stocks with improving financials so you can get in early.
  • Knowing the stocks that are attracting attention from your selected picks and
  • Making sure they are not overbought but still have room for more upside potential.

Last week, I sent a mail to all the subscribers to my weekly newsletter ( and one of my strong buys in the list of stocks to watch is Unilever.

Unilever has lost over 350% in the last 5 years which makes it a no-go area for long-term investing (at least for now). But if you are a smart short trader looking for trending stocks that have upside potential, you can consider these consumer goods stocks.

In the last 6, 3 and 1 months, I have seen positive sentiment drive the stock price of Unilever to the north; 0.37%, 35.50% and 16.81% respectively. I believe that if a stock is set to do 50-100%, I want to see some level of capital appreciation that’s not just tied to the general market run but one that’s largely connected to its impressive quarterly results.

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Financial performance of Unilever:

  • Trailing twelve-month revenue and quarterly growth year on year are 25.8% and 14.26% respectively.
  • Net income and quarterly growth year-on-year print at 75.78% and 381.22%.
  • EPS in the same period stands at 75% and 171.67%

Technical Analysis:

The stock bounced off the 52-week low of  N9.7-N9.8  twice (May 2020 and November 2022) to confirm a strong bottom. It has  since appreciated by 37%, from the low price to reach its current market price of N13.55

Interestingly, the stock price is at par with its 20-month average and from the chart above, the price had been well below this average since 2018 – a perfect reflection of negative sentiment gradually turning to positive.

It had tested this average twice in the past; in November 2021 and July 2022 before it pulled back to the 52-week low of N9.82.

Right now, I am watching the stock for a possible breakout above the 20-month average of N13.55; If the short-term sentiment driving the stock continues to grow, it could rally higher to its 50-month of N17-18, representing a 25% upside.

But this isn’t my target upside; Unilver had established support levels that attracted buyers four (4) times before the price broke out to the downside in November 2019.

This region, which was between N25-N26, was tested in April-May 2012, December 2014, March 2016 and March 2017 respectively. This looks like the closest resistance if the stock price clears the minor resistance of N17-N18 in the next 5-6 months.

The only downside risk is if the company results fall short of expectations but for now, I think the high inflationary environment may support improved margins and bottom line which may help sustain the current bullish sentiments.

What do you think?

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1 Insurance Stock, Down 16% in 6 Months, With 60% Upside Potential