HINT: 7 stocks to have in your portfolio before 2020 ends

By Investdata Analysts

Looking at the seasonal swings trend in the final quarter of every year, Investdata Research has put together stocks to watch and will help you target strategic gains in six months.

If you have not been paying attention to what is happening in the market and the economy right now, this report is for you; and should you be one of those yet to position for this earnings season and post-earnings portfolio repositioning, it is time to act. This will help you profit from the seasonal wave associated with year-end, while at the same time protecting your portfolio. Leaving your investment and trading portfolio exposed to high risk sectors or companies with low earnings power could be unnecessarily exposing to your investable capital, if you are not careful.

We have received several calls from stakeholders- market operators, buy-and-sell signal setup members, followers of investdata online over the past weeks, wondering where to invest, considering the low interest rates in the money market, and low yields in bond market in the midst of resurfacing coronavirus infection cases, rising inflation, sociopolitical, economic and currency risks.

Considering the factors behind the V-shaped market recovery, there is a possibility of marginal pullbacks to make this recovery stronger into the year 2021. This will however depend considerably on the monetary policy authority sustain the current low interest regime to drive economic recovery as intended.

If you are interested in playing with 40% to 50% of your capital, you would profit from these six simple stock picks we have identified using fundamentals and technical tools.

The chart pattern and earnings capacity of these companies suggests a breakout and high upside potential.  Each of these chart will show very clear support levels on the chart. Use your knowledge to identify proper stop levels for each of these stocks. You must watch the general market trend, give some room for the trade to mature and rally, so as to achieve your sell-target with good profit.

UNITED CAPITIAL

PRESCO

LAFARGE AFRICA

MTNN

ZENITH BANK

FLOURMILL

VITAFOAM

We see investors focusing on portfolio adjustments and rebalancing by targeting companies with strong potentials to grow their Q3 numbers and dividend on the strength of their earnings capacity as year-end is around the corner, considering the seasonal swing trend associated with the last quarter of the year.

Again, the current undervalued state of the market offers investors opportunities to position for the short, medium and long-term, which is why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation for the rest of the year.

Ambrose Omordion, Chief Research Officer, InvestData Consulting Limited