By Boluwatife Oshadiya │July 27, 2026
Key Points
• The NGX All-Share Index recovered 7.82% in July after June’s sharp correction, but several sector indices remain well below their May peaks
• The CBN retained the Monetary Policy Rate at 26.5% at its July MPC meeting, a decision that continues to support bank earnings but weighs on credit demand and manufacturing
• Seven stocks — Aradel Holdings, Zenith Bank, Access Holdings, Custodian Investment, Dangote Cement, CWG Plc, and PZ Cussons — are rated Buy or Accumulate for August based on earnings, valuation, and catalysts
• Aradel’s Q1 2026 revenue of ₦728.52 billion already surpassed its entire 2025 revenue, while Zenith Bank earned unanimous Buy ratings from all four broker houses reviewed
• Investors are advised to weigh short-term overbought signals and macro headwinds — including potential inflation resurgence from higher fuel costs — against each stock’s underlying fundamentals
Main Story
Seven stocks on the Nigerian Exchange are worth buying or accumulating in August 2026 — an investment window shaped by oil-price volatility, a frozen rate cycle, a partial market recovery, and a widening divergence between share prices and business fundamentals.
The selections — Aradel Holdings, Zenith Bank, Access Holdings, Custodian Investment, Dangote Cement, CWG Plc, and PZ Cussons — were screened on the basis of meaningful revenue, positive earnings, reasonable valuations, and visible catalysts that could attract continued investor interest over the coming weeks.
The picks arrive after three turbulent months for the NGX. With one trading week remaining before the end of July, the NGX All-Share Index had recovered most of the losses recorded during June’s sell-off. The index rebounded 7.82% from 229,419.18 points in June to 247,357.40 points, leaving it only 1.21% below its May peak of 250,385.70 points. Year-to-date, the index has gained approximately 58.96%, according to market data.
The recovery, however, was deeply uneven across sectors. Banking led all comers, rising 22.95% in July and moving 7.93% above its May level. The NGX 30 also recovered almost all of its June losses and stood only 0.38% below May. But oil and gas and industrial goods recovered only 3.47% and 3.77% respectively, remaining 12.12% and 13.89% below their May levels. Insurance recovered about half its June decline but was still 6.59% below May, while consumer goods fell another 1.87% in July and remained 8.07% below its May level.
The macroeconomic backdrop heading into August is a study in competing forces. On the upside, renewed tensions in the Middle East could keep crude oil prices elevated, supporting upstream oil producers. The CBN’s Monetary Policy Committee, at its 306th meeting in Abuja on July 20 and 21, retained the MPR at 26.5%, a decision that analysts say provides stability for bank income streams. Nigeria’s gross external reserves climbed to $52.52 billion as of July 17, 2026 — enough to cover approximately 11 months of imports — adding another layer of macro support.
On the downside, the rate hold signals that monetary easing has stalled. The CBN trimmed rates by 50 basis points to 26.5% in February, but held at the May and July meetings. Higher petrol and transport costs could push inflation higher again after the marginal June decline that brought headline inflation to 15.91% — a barely perceptible two-basis-point drop from May’s 15.93%. Food inflation, meanwhile, rose from 16.96% in May to 17.52% in June, giving the committee little comfort. These dynamics could pressure household spending and raise operating costs for manufacturers in August.
Against this backdrop, this month’s picks favour companies with proven earnings, reasonable valuations, and clear price catalysts — not stocks riding momentum that has moved well ahead of their underlying businesses.
The Issues
The Uneven Recovery
Nigeria’s equity market has rarely recovered uniformly from corrections, and July 2026 was no exception. While banking stocks have surged past May highs on the back of high interest income and strong H1 results, oil and gas and industrial goods have been left behind by a recovery that is still incomplete. This divergence creates genuine re-entry opportunities in sectors where fundamentals have not deteriorated but prices have not yet caught up.
Rates, Inflation, and the Squeeze on Manufacturers
The CBN’s decision to hold the MPR at 26.5% reflects a genuine policy dilemma. Inflation is declining but not fast enough to justify easing. Meanwhile, the Middle East conflict poses a direct threat to Nigeria’s fuel costs, food supply chains, and exchange-rate stability — all risks the MPC cited in its communiqué. Companies with pricing power, strong balance sheets, or insulation from borrowing costs are better placed than those reliant on cheap credit or weak consumer demand.
The Valuation Gap
Several NGX stocks continue to trade at significant discounts to their intrinsic values. The June sell-off wiped more than ₦13 trillion from investors’ wealth, according to broker research reviewed by BizWatch Nigeria. This has left fundamentally sound companies available at valuations that a reasonable analysis of their earnings and growth can support — as distinct from the broader category of cheap stocks whose prices reflect weak or deteriorating businesses.
What’s Being Said
Analyst Consensus on Banking
Leading stockbroking firms have identified banking stocks as the most attractive post-correction plays for H2 2026. A review of investment reports by Meristem Securities, Blue Marina Research, Cowry Asset Management, and Arthur Steven Asset Management showed broad consensus around several of the banks featured in this analysis.
“Zenith Bank emerged as the strongest consensus recommendation, earning Buy ratings from all four investment houses — the only company to achieve unanimous support,”
— Blueprint Newspapers, reporting on H2 2026 broker recommendations, July 2026
On Dangote Cement’s Earnings Outlook
“The cement company’s earnings outlook remains favourable, underpinned by strong operating leverage, disciplined cost management, and continued investments in compressed natural gas logistics and alternative fuel systems,”
— CSL Stockbrokers, equity report on Dangote Cement, 2026
On the CBN Rate Decision and Market Stability
“The CBN’s decision to maintain its Monetary Policy Rate at 26.50 per cent provided much-needed stability for the financial markets. This status quo gave domestic and institutional investors a clear economic backdrop, encouraging them to aggressively deploy capital into growth and blue-chip equities,”
— Punch Newspapers, market report, July 2026
On Aradel Holdings’ 2025 Performance
“Aradel Holdings Plc delivered a landmark financial performance for the year ended December 31, 2025, supported by the acquisition of an additional 40% interest in ND Western Limited and increased exposure to Renaissance Africa Energy Company,”
— Qudus Adebara, Research Analyst, DLM Capital Group, Simply Wall St analysis, 2026
The August Picks: Stock by Stock
1. Aradel Holdings (ARADEL)
Sector: Oil & Gas | Current Price: ₦1,526.80 | Verdict: Buy or Accumulate
Aradel Holdings is the most compelling re-entry story among this month’s picks. The share price has fallen sharply from its peaks, but the business underneath has continued to grow — and therein lies the opportunity.
The stock fell 26.7% from ₦1,933.80 in May to ₦1,417.50 in June. July’s 7.7% recovery to ₦1,526.80 suggests investors are returning, but the share price remains about 21% below its May level and nearly 25% below its 52-week high of ₦2,024. Over the past year, however, Aradel has returned more than 175% to shareholders who held through volatility.
The fundamental story has strengthened steadily. Q1 2026 revenue of ₦728.52 billion already surpassed the ₦699.43 billion reported for the entire year of 2025. Quarterly profit of ₦120.29 billion represented roughly 30% of last year’s full-year total. This comes on top of a five-year profit growth of approximately 92%. The company’s 2025 revenue was ₦697.30 billion, an increase of roughly 20% from the prior year, while earnings jumped 54.31%, according to financial data.
Aradel is an integrated energy conglomerate with upstream, midstream, and downstream operations through subsidiaries including Aradel Energy (which operates the Ogbele, Omerelu, Olo, and Olo West Marginal Fields), Aradel Gas, Aradel Investments, and Aradel Refineries. The 2025 acquisition of an additional 40% interest in ND Western Limited and its increased exposure to Renaissance Africa Energy Company underpinned the 20% revenue growth recorded last year.
At approximately 8.4 times earnings, with a return on equity of 56.6% and a return on assets of 15.5%, Aradel remains reasonably valued relative to its growth profile. The stock’s low beta also indicates lower historical sensitivity to broad market swings, which is an advantage during the volatile August conditions this analysis anticipates. An independent fundamental model cited by Aboki Forex assigns Aradel a BUY signal with a fundamental score of 73.6 out of 100.
Renewed Middle East hostilities could push crude prices higher in August — an added catalyst for an upstream producer whose Q1 results already outpaced a full year of prior revenue. The average 12-month analyst price target for Aradel is ₦2,254.06, implying more than 47% upside from the current price, with a high estimate of ₦2,577.53.
Verdict: Buy or Accumulate
2. Zenith Bank (ZENITHBANK)
Sector: Financial Services | Current Price: ~₦126.50 | Verdict: Buy or Accumulate
Zenith Bank earns its place among the August picks because it combines the strongest institutional analyst support of any stock reviewed with a compelling mix of valuation, profitability, and income.
At ₦126.50, the stock trades at approximately five times earnings and close to its book value, despite reporting revenue of ₦2.37 trillion, net income of ₦1.04 trillion, and earnings per share of ₦25.37. Its return on equity of 21.7% points to solid use of shareholders’ funds. Zenith has returned more than 148% to shareholders over the past year and is the ninth most valuable stock on the NGX by market capitalisation at ₦4.84 trillion.
Zenith was the only stock among those reviewed to earn unanimous Buy ratings from all four stockbroking firms — Meristem Securities, Blue Marina Research, Cowry Asset Management, and Arthur Steven Asset Management. Their average target price of ₦159.48 implies approximately 26% further capital upside from the current price, before dividends. Meristem Securities specifically highlighted the bank’s attractive price-to-earnings ratio of 4.20 times and price-to-book ratio of 0.85 times, alongside a 20.18% return on equity. Blue Marina Research projected a dividend yield of approximately 5.6%, bringing the expected total return close to 48%.
The stock also offers an indicated dividend yield of about 7.9%, a feature that adds income to potential price recovery in August. The bank began 2026 at ₦61.80 and has gained approximately 90.8% year-to-date, ranking 31st on the NGX in terms of YTD performance — a pace of appreciation that leaves meaningful room between the current price and analyst targets.
The CBN rate hold at 26.5% should continue supporting Zenith’s interest and treasury income through August. The key risks remain elevated bad loans and weaker credit demand as the rate environment discourages borrowing. However, no analyst reviewed believed these risks were sufficient to warrant a rating below Buy.
Verdict: Buy or Accumulate
3. Access Holdings (ACCESSCORP)
Sector: Financial Services | Current Price: ₦29.20 | Verdict: Buy, but with higher risk than Zenith
Access Holdings makes the August list because the market continues to price the group at a steep discount to its underlying value — even after a July rally that pushed the stock sharply higher.
The stock jumped from ₦22 in June to ₦29.20 in July, a move of approximately 32.7%, yet it remains about 19% below its ₦36 reference high. Analysts at DLM Securities have raised their 2026 revenue forecast for the group from ₦3.02 trillion to ₦4.02 trillion, and EPS estimates from ₦11.70 to ₦17.47 per share. The consensus price target has also been revised up to ₦39.64.
At the current price, Access trades at only 2.1 times earnings and 0.4 times book value. The group reports EPS of ₦14.09 and return on equity of 19.9%. Q1 2026 profit after tax rose 19% year-on-year to ₦216.5 billion, supported by strong growth in non-interest income and improved operating efficiency, though the period also saw pressure from higher impairment charges.
Three brokers maintained Buy recommendations on the stock. The July rally has pushed its Relative Strength Index above 83, a reading that suggests the stock is overbought in the near term, and a short-term pullback should be considered a possibility before the next leg higher.
Access has also begun addressing the regulatory issue that prevented dividend payments, completing the sale of a 7.44% stake in its Ghanaian subsidiary as part of plans to reduce foreign subsidiary exposure to below the CBN’s new 10% regulatory cap. This move could bring the group closer to compliance and pave the way for the restoration of dividends — an additional catalyst that the market has not yet fully priced.
Verdict: Buy, but with higher risk than Zenith
4. Custodian Investment (CUSTODIAN)
Sector: Insurance / Investment | Current Price: ₦78.45 | Verdict: Buy or Accumulate
Custodian Investment offers something rare in an August market defined by uncertain macro signals: a business that is growing revenue, converting more of that revenue into profit, and still trading at a valuation that can be justified by realistic earnings expectations.
Revenue rose nearly fivefold between 2021 and 2025, while profit increased more than sixfold over the same period. Q1 2026 results suggest that this growth trajectory continues ahead of its H1 release. The company combines exposure to insurance underwriting income and investment portfolio returns — the latter supported by the 26.5% rate environment that continues to generate strong fixed-income yields.
At ₦78.45, the stock trades at approximately 6.1 times earnings and remains almost 13% below its 52-week high. That means investors are buying into above-average earnings growth at a below-peak entry price. A genuine compound of entry valuation and growth momentum is what makes Custodian stand out in the insurance and investment space.
The key risk for August is that inflation could raise insurance claims and operating costs faster than premium income grows. NEM Insurance is a credible alternative in the same sector, but on a comparison of earnings quality, profitability, and the totality of the financial record, Custodian offers the stronger case.
Verdict: Buy or Accumulate
5. Dangote Cement (DANGCEM)
Sector: Industrial Goods | Current Price: ~₦1,034–₦1,047 | Verdict: Buy
Dangote Cement is the preferred industrial goods pick for August not because it is the cheapest, but because its market leadership, distribution scale, and cash-generation capability give it the most room to absorb the cost pressures that August is likely to bring.
The stock fell from ₦1,180 in May to ₦963 in June before recovering to ₦1,034 in July. As of July 9–10, the stock was trading at approximately ₦1,047, having reached an all-time high of ₦1,189 in May. Dangote Cement is the second most valuable stock on the NGX with a market capitalisation of ₦17.7 trillion, representing approximately 11.3% of the entire Nigerian Exchange equity market.
The company’s Q1 2026 revenue rose 20.4% year-on-year to ₦1.2 trillion, driven by robust performance in the Nigerian market, supported by higher selling prices and volume expansion. CSL Stockbrokers forecast 24.3% year-on-year revenue growth for the full year to ₦5.4 trillion, and project profit before tax to increase 60% year-on-year to ₦2.4 trillion in FY 2026. Annual earnings in 2025 reached ₦1.00 trillion — a more than doubling year-on-year from ₦503 billion in 2024.
At approximately 15.5 times earnings with EPS growth of 29.57%, Dangote Cement is not the cheapest pick on the screen. Three brokers rate it Buy with an average target of ₦1,299.44, implying further upside. Technical indicators on Investing.com also show a Strong Buy signal, while analysts noted that the company’s investments in compressed natural gas logistics and alternative fuel systems are progressively reducing its exposure to high diesel costs.
The most significant risks in August are higher fuel, shipping, and input costs from global tensions, and the possibility that elevated interest rates weaken construction demand and raise financing expenses. However, Dangote’s scale, pricing power, and consistent dividend record — the company most recently paid a ₦45 per share dividend with a payment date of July 2, 2026 — make it materially better placed than most industrial sector peers to navigate these headwinds.
Verdict: Buy
6. PZ Cussons Nigeria (PZ)
Sector: Consumer Goods | Current Price: ₦84.95 | Verdict: Buy or Accumulate
PZ Cussons Nigeria is on the August list because the turnaround story that emerged from the 2023 crisis is now visible in the accounts — but the share price has not yet caught up with the scale of that recovery.
The numbers tell a dramatic story. Revenue grew from ₦99.50 billion in 2021 to ₦260.46 billion in 2025 — a 22.49% increase year-on-year in fiscal year 2026. Profit swung from a ₦90.32 billion loss in 2023 to ₦49.10 billion in 2025. Earnings per share recovered to ₦11.79. For the nine months ended February 2026, year-to-date revenue increased 28% year-on-year to ₦197.22 billion, while profit before tax surged to ₦68.20 billion — more than four times the prior-year level.
The company manufactures, distributes, and sells consumer products and home appliances under brands including Morning Fresh, Zip, Canoe, Premier, Excel, and Joy. It operates through two segments: Home and Personal Care Products, and Durable Electrical Appliances.
At ₦84.95, PZ trades at just seven times earnings and remains over 22% below its 52-week high. Return on assets of 29.8% and return on equity of 133.7% reflect strong profit generation, though it is worth noting the high ROE partly reflects a low equity base rather than pure operational efficiency. A Relative Strength Index of 41.4 suggests the stock is not overbought — unlike Access Holdings, there is no technical overhang to manage in the near term.
The key watch item is sustainability. Analysts at Simply Wall St have noted that one-off gains from asset disposals contributed materially to PZ’s recent profit expansion. The question for August is whether core operating performance continues to strengthen once those non-recurring items fade. Based on the revenue trajectory and the return metrics, the answer appears to be yes — but investors should monitor the next quarterly release for confirmation.
Verdict: Buy or Accumulate
7. CWG Plc (CWG)
Sector: Information & Communications Technology | Current Price: ₦20.80 | Verdict: Buy or Accumulate
CWG Plc makes the August list as the ICT pick because it offers a better balance between proven growth and entry price than most peers in the technology space. The business has shifted from hardware distribution to enterprise software and services — and the numbers show that this transition is working.
Revenue rose from ₦11.71 billion in 2021 to ₦65.56 billion in 2025, a more than fivefold increase over four years. Full-year 2025 results showed revenue up 41.43% from ₦46.35 billion, while profit after tax rose 84.22% to ₦5.61 billion. Earnings per share climbed from ₦1.21 to ₦2.22. Profit margin expanded from 6.6% to 8.5% year-on-year.
Much of this growth has been driven by CWG’s long-term partnership with Infosys, through which it distributes the Finacle core banking application to major Nigerian banks including First Bank, GTBank, UBA, Fidelity, Stanbic IBTC, FCMB, and Wema. Software sales rose 27.35% to ₦20.92 billion in 2025, reflecting a deliberate strategic pivot from its roots as an Oracle hardware systems integrator to a software and services-led model. Since 2023, software sales have increased by approximately 450%. Revenue from IT infrastructure services also rose 88.44%.
CWG now operates in Nigeria, Ghana, Uganda, Cameroon, Kenya, Rwanda, and the UAE through its Dubai office established in 2023. Its clients include MTN, UBA, and First Bank across its core financial services vertical.
At ₦20.80, with the stock approximately 18% below its 52-week high of ₦25.25, CWG offers meaningful recovery potential from a smaller earnings base. Earnings per share have grown 66% over the past five years. The stock’s trailing PE ratio of approximately 10.9 times is broadly in line with IT industry averages in Africa. The dividend yield of 3.1% — higher than the sector average of 1.8% — adds an income dimension. However, analysts at Simply Wall St note that the company currently has no free cash flows, suggesting the dividend is being funded from cash reserves or borrowings, a sustainability factor to watch.
For August, CWG’s ICT positioning — with exposure to bank technology spending rather than consumer demand — insulates it from the household income compression that higher fuel costs could accelerate. The stock’s total three-year shareholder return of 2,861% also underscores the scale of value creation that has occurred from a business still growing rapidly.
Verdict: Buy or Accumulate
What’s Next
Several near-term developments will shape how these seven stocks perform in August:
• Aradel Holdings is scheduled to hold its Annual General Meeting on July 30, 2026. The meeting could provide additional guidance on production volumes, capital allocation, and the dividend outlook. Eligible shareholders who bought before July 10 should already be on the register for the recently declared dividend.
• Dangote Cement is expected to release its next earnings report on July 24, 2026. The Q2 result will either confirm or complicate the strong Q1 trajectory and could serve as the key re-rating event for the stock in August.
• The Federal Reserve’s next FOMC meeting is scheduled for July 28–29, 2026. Any signal from the Fed that oil-driven inflation risk could delay U.S. rate easing or prompt tightening would matter for dollar strength, U.S. yields, and frontier-market capital flows to Nigeria.
• The next inflation print from the National Bureau of Statistics will determine whether the marginal June decline in headline inflation (15.91%) continues or reverses. A reversal — driven by higher fuel prices — could prompt heightened caution in consumer-facing stocks including PZ Cussons.
• Access Holdings’ progress toward CBN regulatory compliance on foreign subsidiary exposure will remain in focus. Any confirmation of further stake disposals or regulatory sign-off could unlock dividend restoration and materially re-rate the stock.
Bottom Line
The Bottom Line: This month’s picks are not momentum chases. They are built on a simple premise: the June correction created a meaningful gap between prices and fundamentals in several well-run businesses, and August gives investors a second chance to enter at better valuations before the market closes that gap. The risk is real — inflation could re-accelerate, rates could stay higher for longer, and global tensions could spike input costs across multiple sectors. But in a market where some share-price rallies have moved far ahead of the companies behind them, the discipline of buying earnings growth at reasonable prices — rather than buying momentum — is what separates a genuine investment from a crowded trade. A genuine business turnaround or growth story will eventually show up in revenue, profit, cash flow, and timely financial reporting. For these seven companies, that story is already visible.
