Discover the Hottest Nigerian Stocks to Buy in July 2023: 5 Top Recommendations

Investing in the stock market can be an exciting and potentially lucrative endeavor, offering opportunities to participate in the growth of companies and sectors. For those interested in Nigerian stocks, the Nigerian Stock Exchange (NSE) provides a platform for investors to engage with the country’s vibrant and evolving economy.

As Nigerian Stocks open July with N534 billion gain, investors are keen to identify the hottest Nigerian stocks that may hold the promise of robust returns. It is important to note that stock market trends are dynamic and subject to change, however, exploring potential opportunities and staying informed can help you make well-informed investment decisions. In this article, we’ll explore some hot Nigerian stocks to look out for in July 2023.

Exxon Mobil Corp (XOM)

Nigeria’s second largest crude oil producer, ExxonMobil, with a market capitalisation of $426 billion is one of the stocks to look out for in Nigeria. Established in 1999,  as a result of a merger of Exxon and Mobil, the company primarily focuses on the exploration, production, and trading of crude oil and natural gas, while also engaging in the manufacturing of various petroleum products. 

The dividend yield is expected to be 3.42% with a 10-Year Avg. Annualized Return of 5.9%. ExxonMobil has pursued a proactive approach in funding long-term energy production, making substantial investments in this regard. Although this strategy temporarily impacted its cash flow and resulted in a downgrade to its bond rating in 2020, the company remains optimistic that these investments will yield favorable returns, counting on the anticipation of future oil price increases. With an extensive presence in the global energy sector, the company has established itself as a key player in the industry.

International Breweries

As an investor, a company to put in your stock is International Breweries plc. The Nigerian brewery specializes in the production, packaging, and sale of beer, alcoholic and non-alcoholic beverages, and soft drinks. Having begun operations in 1978 with an initial capacity of 200,000 hectolitres per year, which later expanded to 500,000 hl/a by December 1982, the company was listed on the Nigerian Stock Exchange as a public limited liability company in 1994.

The company currently holds the twenty-third position in terms of market value on the NGX, with a market valuation of NGN 134 billion, equivalent to approximately 0.505% of the total Nigerian Stock Exchange equity market. Starting the year with a share price of 4.95 NGN, International Breweries has experienced a 1.01% increase in its share price, placing it at the 52nd position on the NGX in terms of year-to-date performance.

Chevron corp

Chevron Nigeria Limited, holds the position as one of the largest oil producers in Nigeria, the second-largest energy company in the United States and the third-largest globally. The company plays a significant role in oil and gas production, serving as a major producer in the industry. Also, Chevron serves as a prominent supplier of aviation fuel and owns a vast network of over 7,800 retail gas stations operating under the Chevron and Texaco brands.

With a market capitalisation of $295 billion, the company is currently benefiting from the recent resurgence in travel and the global economy, which has positively impacted its present outlook. Simultaneously, it is actively directing investments towards future low-carbon energy initiatives, including the development of renewable jet fuel projects. 

In addition, it’s worth noting that ExxonMobil has a dividend yield of 3.76%, which indicates the percentage return on its stock dividends relative to its stock price. Moreover, the company has achieved a 10-year average annualized return of 6.7%, reflecting its historical performance over a decade-long period. These figures provide insights into the company’s dividend payout and long-term investment returns for shareholders.

Transcorp

Another company to put in your stocks is the Transnational Corporation of Nigeria Plc (TRANSCORP). The company is an investment firm that specializes in acquiring and managing companies to generate long-term profits for shareholders while making a positive socio-economic impact. Its operational segments include Corporate Centre, Oil & Gas, Agro-Allied, Power, and Oil & Gas.

Among its notable investments, Transcorp Nigeria owns the renowned Transcorp Hilton Hotel in Abuja and Transcorp Hotels in Calabar.

With a market value of NGN 45.5 billion, Transcorp Nigeria is currently ranked as the 32nd most valuable stock on the NGX, representing approximately 0.171% of the Nigerian Stock Exchange equity market. Starting the year at a share price of 0.96 NGN, Transcorp has witnessed a 16.7% increase in its share price, positioning it at the 36th spot on the NGX in terms of year-to-date performance.

UAC of Nigeria Plc

UAC of Nigeria is currently ranked as the 39th most valuable stock on the NGX, with a market valuation of NGN 32.3 billion, representing around 0.121% of the Nigerian Stock Exchange equity market. Starting the year at a share price of 9.50 NGN, UAC has seen a 17.9% increase in its share price, placing it at the 33rd position on the NGX in terms of year-to-date performance.

The company is a leading company operating in the food and beverage, real estate, paints, and logistics industries. It operates through segments such as Food and Beverages, Paints, Logistics, Real Estate, and “Others.” The Food and Beverages segment focuses on the production and sale of food and beverage products. The Paints segment deals with paints production and sales, including decorative items. 

The Logistics segment provides logistics and supply chain services. The Real Estate segment engages in real estate development and management. The “Others” segment is involved in pension fund administration services and oversees the corporate head office.