At the end of the past week, the Main Market moved within less than one percent for the year’s highest close as the market is showing bullish signs. The junior Market closed the week higher than the close of the previous week but the market closed with the ICInsider.com TOP 10 stocks remaining unchanged.
Two stocks with a notable gain in the Junior Market TOP 10 are Caribbean Cream rising 11 percent to close at $3.79 and Express Catering rose 10 percent to $3.96. AMG Packaging skidded 18 percent to close at $2.60. In the Main Market, there were three stocks with outsize movements. 138 Student Living jumped 19 percent to $4.15 followed by a 13 percent rise respectively for General Accident to $5.35 and Margaritaville to $17.50.
For the full list of percentage changes for the week for the ICTOP10 stocks, check the attached charts that now show a column of the weekly price movements.
The average PE for the JSE Main Market ICTOP 10 stands at 5.2, well below the market average of 13.4 and the Junior Market TOP10 sits at 7.2, just over half of the market, with an average of 13.4
The Main Market ICTOP10 is projected to gain an average of 294 percent by May 2024, based on 2023 forecasted earnings, providing better values than the Junior Market with the potential to gain 181 percent over the same time frame.
In the Main Market ICTOP 10, a total of 14 of the most highly valued stocks representing 29 percent of the Main Market are priced at a PE of 15 to 108, with an average of 32 and 22 excluding the highest PE ratios, and a PE of 25 for the top half and 18 excluding the stocks with overweight values.
In the Junior Market IC TOP10 are 14 stocks, or 29 percent of the market, with PEs ranging from 15 to 48, averaging 21, well above the market’s average. The top half of the market has an average PE of 18, possibly the lowest fair value for stocks, currently.
Of great import is that the averages of both markets are now converging around a PE of 20 for close to a third of the market, as the year is coming to a close and with more information available on the full year’s earnings.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but this is not always so. 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 on or around 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 and result 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.
