Only one ICTOP10 Junior Market stock rose at the end of the past week while six declined, with the Main Market fearing a bit better, with six declining and three rising as the week closed with no new additions to the TOP10 lists.
The Junior Market’s Caribbean Assurance Brokers rose 13 percent to $2.95 while Iron Rock Insurance dropped 13 percent to $2.10, followed by a 12 percent decline for Everything Fresh to close at $1.34, Edufocal lost 10 percent to $1.49 and OneonOne, Dolphin Cove and Image Plus all lost 4 percent.
The Main Market had a 15 percent rise in Key Insurance to $2.88, followed by a 9 percent increase in 138 Student Living to $4.65. Jamaica Broilers fell 9 percent to $31.99, Caribbean Cement lost 6 percent to end at $51.75, followed by a 5 percent fall in Guardian Holdings and Margarittaville down 4 percent to 10.9 US cents.
Key Insurance was three of the TOP10 companies to release results in the week. The half year results ended with revenues up 23 percent to $1.3 billion and profits of $14 million and $9 million for the June quarter, both were helped by Investment income that jumped $118 million from $47 million in the six months and $62 million versus $29 million in the June quarters.
Everything Fresh reported a 14.4 percent increase in revenues to $827 million for the June quarter and a 32 percent jump for the half year to $1.67 billion and a profit of $43 million for the second quarter compared with $30 million in 2022 for the June quarter, and $78 million r the half year versus $38 million in 2022.
Edufocal reported a 36 percent jump in revenues to $98 million in the June quarter and a 59 percent jump for the half year to $211 million, delivering a profit of $23 million for the second quarter compared with $10 million for the June 2022 quarter and $66 million for the half year versus $12 million in 2022.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.3, well below the market average of 13.1. The Main Market TOP10 is projected to have an average of 317 percent, to May 2024, based on 2023 forecasted earnings.
The 14 most highly valued Main Market stocks representing 30 percent of the Main Market are priced at a PE of 15 to 95, with an average of 30 and 20 excluding the highest PE ratios, with a PE of 23 for the top half and 18 excluding the stocks with the highest PEs.
The Junior Market Top 10 PE sits at 5.3 compared with the market at 10.6. There are 11 stocks representing 23 percent of the market, with PEs from 15 to 34, averaging 19, which is well above the market’s average. The top half of the market has an average PE of 15, possibly the lowest fair value for Junior Market stocks currently, and is projected to rise by 278 percent to May 2024.
The divergence between the average PE ratio of the Main and Junior Markets and the overall market valuation are important indicators of the level of likely gains for ICTOP10 stocks.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but not always. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks will likely deliver the best returns up to the end of May 2024 and are ranked in order of potential gains, computed using projected earnings for the current fiscal year. Expected values will change as stock prices fluctuate, resulting in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.