ICTOP10 stocks have four new listings this week as recent profit results led to revisions to earnings, as a result, the Junior Market lost General Accident and Stationery & Office Supplies, while Berger Paints and PanJam Investment exited the Main Market ICTOP10.
General Accident inched from $6.60 last week to $6.70 this week, but earnings were revised downwards to 65 cents for the year, helping it exit the TOP10. New to this week’s ICTOP10 are the Junior Market’s Medical Disposables, with the price falling 23 percent to $5.20 from $6.78 last week and Caribbean Cream. Sygnus Credit Investments dropped out of the TOP10 the previous week and returns with the price dropping 17 percent from $18.90 down to $15.66 this past week, while Proven Investments also returns.
Big TOP10 movers this week are AMG Packaging up 41 percent in closing at $2.40 from $1.70 last week, Dolphin Cove leapt 22 percent to land at $12.50. In the Main Market, Caribbean Producers dipped 15 percent to close at $8.61 as some selling came in for the stock and Radio Jamaica has an analysts briefing on Tuesday coming and dropped 13 percent to an attractive entry of $3.06, with revenues and profit climbing over the last fiscal year’s outturn.
The top three Main Market stocks are Caribbean Producers, Guardian Holdings and JMMB Group, which are projected to gain between 212 to 283 percent expected versus last weeks’ 227 to 261 percent.
The top three stocks in the Junior Market are Caribbean Assurance Brokers, followed by AMG Packaging and Lasco Distributors. All three can gain between 154 and 207 percent, down from 209 percent and 253 percent previously.
The latest results show that there are many undervalued stocks, but investors should focus on these stocks that could show good earnings growth in 2022.
The average gains projected for the TOP 10 Junior Market stocks moved from 185 percent last week to 145 percent and Main Market stocks remains unchanged at 163 percent.
The Junior Market closed the week with an average PE 14.1 based on ICInsider.com’s 2021-22 earnings and is currently well below the target of 20 and the March 2020 historical average of 17, based on 2020 earnings. The TOP 10 stocks trade at a PE of a mere 8.3, with a 42 percent discount to that market’s average PE.
The Junior Market can gain 42 percent to March next year, based on an average PE of 20 and 21 percent based on an average PE of 17. Nine stocks representing 22 percent of all Junior Market stocks with positive earnings are trading at or above this level, down from seven last week, indicating that many others will rise towards 17 mark in the weeks ahead.
The average PE for the JSE Main Market is 15.5, which is 23 percent less than the PE of 19 at the end of March and 29 percent below the target of 20 to March 2022. The Main Market TOP 10 average PE is 8, representing a 52 percent discount to the market and well below the potential of 20. A total of 14 stocks or 30 percent of the market trade at or above a PE of 19, with most over 20, for an average PE of 25.5, suggesting that the accepted multiple maybe around 25 times the current year’s earnings.
ICTOP10 focuses on likely yearly winners, accordingly, the list may or may not include the best companies in the market. ICInsider.com ranks stocks based on projected earnings to highlight winners from the rest, allowing investors to focus on potential winning stocks and helping to remove emotional attachments to stocks that often result in costly mistakes.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on the possible increase for each company, considering the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in weekly movements in and out of the lists. Revisions to earnings per share are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
