During the past week, the JSE Main Market Index and the Junior Market lost ground at the close of the week but that did not prevent some ICTOP10 stocks from posting gains even as others fell to close out the past week, with three Junior Market stocks rising and four declined while four Main Market stocks gained and three declined.
Price movements in the market resulted in one new TOP10 listing for the Junior Market and one for the Main Market. Everything Fresh rose 9 percent to $1.75, followed by Caribbean Assurance Brokers, gaining 7 percent to end at $3.10, while the losers include Elite Diagnostic and One on One, down 5 percent to $1.79 and $1.01 respectively, followed by a 4 percent decline in Dolphin Cove to $15.50.
The Main Market closed the week with Margaritaville jumping 18 percent to $16.60. Key Insurance dropped 10 percent to $2.25 and 138 Student Living dropping 6 percent to $4.06.
One on One Education dropped out of the Junior Market TOP10, having reported a loss for the year to August, from flat revenues year over year and is replaced by Lasco Manufacturing, returning after a one week absence, with potential to end up with solid gains in the months ahead.
Returning to the Main Market TOP 10 is Caribbean Cement replacing Guardian Holdings, with the nine months’ results indicating lower earnings this year based on the new accounting policy.
The average PE for the JSE Main Market ICTOP 10 stands at 5.1, well below the market average of 12.2. The Main Market ICTOP10 is projected to gain an average of 320 percent by May 2024, based on 2023 forecasted earnings.
An indication of where stock prices could be by May 2024 can be seen from stocks with the highest values in the Main and Junior Markets.
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 30 and 19 excluding the highest PE ratios, and a PE of 23 for the top half and 16 excluding the stocks with overweight values.
The PE of the Junior Market TOP10 sits at 6.1, just over half of the market, with an average of 11.7. There are 12 stocks, or 25 percent of the market, with PEs from 15 to 50, averaging 21 that are well above the market’s average. The top half of the market has an average PE of 17, possibly the lowest fair value for Junior Market stocks currently, with the market projected to rise by 234 percent on or around May 2024.
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.