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The Nigerian equities market is entering August with oil and gas stocks, banks and a handful of undervalued companies likely to remain in focus.

After reviewing share-price performance, valuations, revenue, profit and earnings growth, these stocks are worth considering going into August.

The stocks include: Aradel Holdings, Zenith Bank, Access Holdings, Custodian Investment, Dangote Cement, CWG, and PZ Cussons.

Past performance

The selections come after a turbulent three months for the Nigerian Exchange. With one trading week remaining before the end of July, the NGX All-Share Index had recovered most of the losses recorded during the June correction.

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.

The recovery, however, was uneven. Banking led the market, rising 22.95% in July and moving 7.93% above its May level. The NGX 30 also recovered almost all its June losses and stood only 0.38% below May.

Oil and gas and industrial goods recovered only 3.47% and 3.77% in July and remained 12.12% and 13.89% below their May levels. Insurance recovered about half of 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.

Market tailwinds and headwinds for August

Renewed hostilities in the Middle East could keep crude oil prices elevated, supporting upstream producers.

The Central Bank of Nigeria’s decision to retain the Monetary Policy Rate at 26.5% could also sustain strong interest income for banks, although high borrowing costs may weaken credit demand and increase asset-quality risks.

At the same time, higher petrol and transport costs could push inflation higher again after the marginal decline recorded in June. This may place further pressure on household spending and raise operating costs for manufacturers.

Against this backdrop, the August picks favour companies with visible earnings, reasonable valuations and clear catalysts that could continue attracting investor interest.

Aradel Holdings

Aradel is one of the stocks to buy in August because the share-price decline has created another entry point into a business that is still expanding rapidly.

The stock fell 26.7% from N1,933.80 in May to N1,417.50 in June. July’s 7.7% recovery to N1,526.80 suggests investors are returning, but the share price remains 21% below its May level and nearly 25% below its 52-week high.

Earnings have continued to grow, and the share price has not fully caught up. Q1 2026 revenue of N728.52 billion already surpassed the N699.43 billion reported for the whole of 2025, while quarterly profit of N120.29 billion was about 30% of last year’s total. This comes on top of an estimated five-year profit growth of roughly 92%.

At 8.4 times earnings, Aradel remains reasonably valued, supported by a 56.6% return on equity and 15.5% return on assets. Its low beta also points to lower historical market sensitivity.

Aradel offers a stronger mix of growth, valuation, and upside than most sector peers. Higher crude prices could provide an added August catalyst.

Verdict: Buy or accumulate

Zenith Bank:

Zenith Bank earns its place among the August picks because it combines strong profitability, dividends, and broad analyst support.

At N126.50, the stock trades at about five times earnings and close to its book value, despite reporting revenue of N2.37 trillion, net income of N1.04 trillion and EPS of N25.37. Its return on equity of 21.7% also points to solid use of shareholders’ funds.

The stock offers an indicated dividend yield of about 7.9%, while all four brokers reviewed issued Buy recommendations.

Their average target price of N159.48 implies roughly 26% further capital upside from the current price of N126.50, before dividends.

High interest rates should continue supporting interest and treasury income, although bad loans and weaker credit demand remain at risk.

Verdict: Buy or accumulate

Access Holdings

Access Holdings makes the August list because the market still prices the group at a steep discount to its underlying value.

The stock jumped from N22 in June to N29.20 in July yet remains about 19% below its N36 reference high.

At the current price, Access trades at only 2.1 times earnings and 0.4 times book value. It also reports EPS of N14.09 and returns on equity of 19.9%. Three brokers reviewed and maintained Buy recommendations.

The July rally has pushed its RSI above 83, suggesting a short-term pullback is possible.

Access has also begun addressing the regulatory issue that prevented dividend payments, completing the sale of a 7.44% stake in its Ghanaian subsidiary. This could move the group closer to regulatory compliance and the restoration of dividends, adding another catalyst to its low valuation.

Verdict: Buy, but with higher risk than Zenith

Custodian Investment

Custodians combine strong profitability with exposure to insurance and investment income. It is a buy in August because the company is growing revenue, converting more of that revenue into profit, and still trades at a reasonable valuation.

Revenue rose nearly fivefold between 2021 and 2025, while profit increased more than sixfold. Q1 2026 results also suggest that the growth momentum continues ahead of its H1 release.

At N78.45, the stock trades at about 6.1 times earnings and remains almost 13% below its 52-week high.

That gives investors three things: strong earnings growth, a relatively low entry valuation, and room for further price recovery.

Higher interest rates should support returns on its investment portfolio, although inflation could raise claims and operating costs. NEM remains a credible alternative, but Custodian offers stronger earnings and profitability profile.

Verdict: Buy or accumulate

Dangote Cement:

Dangote Cement is preferred to other industrial stocks because its market leadership, broad distribution network and strong cash generation give it more room to absorb rising costs.

The company also has a consistent dividend record, which adds income to potential price recovery.

The stock fell from N1,180 in May to N963 in June before recovering to N1,034 in July.

At about 15.5 times earnings, with EPS growth of 29.57%, it is not the cheapest pick, but three brokers still rate it Buy, with an average target of N1,299.44.

Global tensions could raise fuel, shipping, and input costs, while high interest rates may weaken construction demand and increase financing expenses.

However, Dangote’s scale, pricing power and dividend support make it better placed than most industrial peers.

PZ Cussons

PZ Cussons makes the August list because the business has moved from crisis to profit, but the share price still leaves room for investors to benefit from that recovery.

Revenue grew from N99.50 billion in 2021 to N260.46 billion in 2025, while profit swung from a N90.32 billion loss in 2023 to N49.10 billion in 2025. EPS also recovered to N11.79.

That turnaround is supported by ROA of 29.8% and ROE of 133.7%, showing strong profit generation, though the high ROE partly reflects a low equity base. An RSI of 41.4 suggests the stock is not overbought.

At N84.95, it trades at just seven times earnings and remains over 22% below its 52-week high. Investors are therefore buying improving earnings at a relatively modest price

Verdict: Buy or accumulate

CWG: the ICT pick with more valuation

CWG offers a better balance between proven growth and entry price. Revenue rose from N11.71 billion in 2021 to about N65.56 billion in 2025, while profit increased more than tenfold.

Its 2025 revenue grew 42%, with profit after tax rising strongly, showing that the growth is already visible in the accounts.

CWG, at N20.80 and 18% below its 52-week high, offers more recovery potential from a smaller earnings base.

Verdict: Buy or accumulate

Bottom line

The stocks were not selected only because their prices have risen or fallen. The screen focuses on companies with meaningful revenue, positive earnings, and valuations that can be linked to realistic business performance.

That is important in a market where some share-price rallies have moved far ahead of the companies behind them.

A genuine turnaround should eventually appear in revenue, profit, cash flow and timely financial reporting.