Let me say this before I share my current picks, I do not reveal all of my stock picks on this blog. It’s not that I am being evasive. The problem is that it’s not easy for me to post here every day as it’s time-consuming, so I’d rather share my latest stock picks on my Whatsapp group, And if you have been buying my stock picks lately, then congratulations!
I don’t pick stocks like a gambler but with a combination of fundamentals (which tells me what to buy), technical (which tells me when to buy) and sentiment (which tells me the stocks investors love), I have helped my subscribers improve their trade results significantly.
Here are some of the stock market picks I shared on my Whatsapp group:
These stocks have helped early buyers pocket an estimated 15-20%+ return via capital appreciation besides Skyavn went from N1.59 to N2.7, that’s 69% return in 2 weeks. Some other picks were MTN at N98, Ecobank at N4,8, Oando at 2.6, Jaiz bank, and so on.
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Today, let’s look at two healthcare stocks that will enjoy more rapid capital appreciation in the coming weeks as they look oversold on the chart.
Glaxo Smithkline Consumer Plc
GSK has appreciated by 117% and 33.93% in the last 3 and 1 months respectively. This is not unconnected to the fact that healthcare is the hottest sector right now. With the Covid-19 pandemic shaping the way we live and the unavailability of a confirmed vaccine to fight the spread of the virus, we believe the sector will attract more grants and funds from the government.
Technically, the stock is oversold right now which calls for a gradual positioning ahead of a further share price appreciation which is driven by positive sentiments and improved financials.
In its recent financials, the company recorded a slight decline in revenue but profit after tax was largely supported by cost optimizations. EPS on a trailing twelve-month prints at 78k and if you adjust this by a 9% discount, you will arrive at a fair value of N8.6 which is 14.6% above the market price of N7.5.
May and Baker
Just like GSK, May and Baker stock is worth watching right now. I believe that the same sectoral policies that are driving healthcare stocks rub on this stock. In the last 30days, the stock has appreciated by 25.51% as investors factor in improved financials.
While its recent results show a marginal fall in revenue from N8.5b to N8, a significant reduction in net finance cost helped boost its after-tax profit to N716m against N342m recorded in the preceding year. EPS also grew by 67% to 41k (from 24.75k in 2018).
Using a risk-adjusted discount of 9% on its recent EPS of 41k, the stock is fairly priced at N4.5 which represents 47% upside potential from its market price of N3.05.
Make sure you average down on any of these stocks to cut your entry price.
Disclaimer: Kindly do your due diligence. These are my personal opinion on the stocks to buy next week.