The broad market rally has been impressive this year, despite the pullback seen in the first week of June.

As of the close of trading in May 2026, the NGX All-Share Index gained 60.9% YTD.

However, in the first week of June, the benchmark index shed 7,792.16 points from the previous week’s close of 250,385.47 points, while market capitalization declined by 3.06% to N155.59 trillion, wiping out approximately N4.91 trillion in investor wealth.

Despite the pullback, about 77 stocks still have year-to-date returns above the inflation rate of 15.69%, and about 30 stocks have achieved triple-digit YTD gains.

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Amid these short-term fluctuations, analysts believe there are stocks with strong upside potential worthy of consideration going into H2 2026.

Access Holdings PLC – Banking 

The stock closed May 2026 at N24.05 and gained slightly to N25 in the first week of June, representing a 3.6% increase in market value (N51 billion) and pushing its year-to-date gain to 21.4%.

Valuation models suggest its intrinsic value exceeds double the current price, signaling significant upside if fundamentals hold.

  • At a 12-month trailing EPS of N13.98, investors are paying just N1.79 per naira of earnings, reflecting strong undervaluation.

The bank has compounded its earnings at 31% over the past five years, and for H2 2026, we assume a moderate EPS growth of 5%, based on Q1 2026’s 11% YoY EPS increase.

From a technical perspective, the Relative Strength Index (RSI, 14-day) is 43.73, suggesting the stock is in neutral territory; it is neither overbought nor oversold, implying that current price levels are reasonable for new investors considering H2 positions.

Analyst support & target prices: 

  • CardinalStone Research recently revised its 12-month target price to N52.14, implying over 100% upside from current levels.
  • Arthur Stevens Asset Management issued a buy rating on the stock, with a target price of N100.7, depicting an upside potential of over 303%.
  • Meristem Research offered a price target N31.82 with upside potential of 28% over the next 12 months and Buy rating.

Transcorp Plc – Diversified Conglomerate 

The stock closed May 2026 at N46.00 and slipped slightly to N45.90 in the first week of June, representing a 0.22% decrease in market value (N1 billion), while its year-to-date gain stands at 1.1%.

The company has compounded its EPS at 57% over the past five years, but for H2 2026, at a moderate forward EPS growth rate of 20%, the stock still offers strong upside.

Also, at a 12-month trailing EPS of N8.68, investors are paying just N5.29 per naira of earnings, suggesting the stock is not pricey and given even given the moderate growth rate of 20%, it is undervalued relative to earnings growth as depicted by the PEG ratio.

From a technical perspective, the 14-day Relative Strength Index (RSI) is 48.08, suggesting the stock is in neutral territory, neither overbought nor oversold, and current price levels are reasonable for investors considering H2 positions.

Analyst support & target price:

  • CardinalStone Research maintains a Buy rating with a 12-month target price of N69.71, implying roughly 51% upside from current levels supported by expanding power generation capacity, improving hotel operations, and strong cash flows.

MTN Nigeria Communications Plc – Telecom 

In the telecom space, we have MTN Nigeria Communications Plc. The stock traded last at N755, down 5.49% (N944.8 billion in market value) in June alone.

Notwithstanding, it still has a 52% YtD gain, and earnings have kept pace with the rally.

  • In Q1 2026, EPS grew by166%, pushing the 12-month trailing EPS to N63.64 and as such, investors are currently paying just N12 for every N1 trailing earnings and when you factor in its 31% annual growth rate, the stock makes more sense as undervalued relative to growth.

Even at a less modest growth rate of 10%, the stock still has over 20% upside from its current price, consistent with some analysts’ recommendation and target price

  • Meristem issued a Buy rating with a 12-month target price of N1,019 at a reference price of N850, while Arthur Stevens also recommended a Buy with a target of N1,055 at N820.

AIICO Insurance Plc – Insurance 

The stock last traded at N4.48, down 0.44% (N732 million) in the first week of June, moderating its year-to-date gain to 18.21%.

Earnings growth has been impressive historically, with over 60% annual growth over the past five years.

  • Earnings growth moderated in 2025 to 14% YoY, and in Q1 2026 EPS grew at 8%. Assuming the Q1 growth rate is maintained, the intrinsic value is about 70% higher than the current price of N4.48, tallying with Meristem and Arthur Stevens’ Buy ratings.
  • ASAM values AIICO at a 12-month target price of N5.82 based on a reference price of N4.50.
  • Meristem also maintains a Buy rating with a target price of N5.84 at a reference price of N4.64.

From a technical perspective, the Relative Strength Index (RSI) remains neutral, indicating the stock is neither overbought nor oversold. Additionally, it is trading about 19 percent below its 52-week high, making it an attractive option for H2 2026 positions.

FCMB Group Plc – Banking 

Despite a 7.05% YtD decline, including 4.3% in the first week of June, FCMB remains recognized by multiple brokers; including United Capital, Futureview Research, and Meristem Research as a growth candidate among Tier 2 banks with significant upside potential.

Analyst guidance:

  • Meristem issued a Buy rating with a 12-month target price of N15.57 based on a reference price of N11.55, implying an upside potential of 35%.

The stock, at last week’s price of N11.20, is trading at about 79% of its 52-week high.

From a technical perspective, the 14-day Relative Strength Index (RSI) is 42.65, indicating a neutral position; the stock is neither overbought nor oversold, suggesting room for further upside.

Valuation and earnings: 

  • At a trailing EPS of N4.06, investors are effectively paying N3 per N1 of earnings, reflecting strong undervaluation.
  • FCMB has compounded its earnings at an annual growth rate of 39 percent, which supports the low PEG ratio of 0.07 and highlights the stock’s attractiveness relative to its growth potential.
  • Importantly, recent earnings growth in full-year 2025 and Q1 2026 outpaced historical averages, reinforcing the stock’s strong fundamentals

The bottom line 

The broad market rally through May 2026, which drove the NGX All-Share Index to year-to-date gains of over 60%, has clearly fueled optimism among investors and analysts.

  • Stocks like Access Holdings, Transcorp, MTN, AIICO, and FCMB benefited from strong earnings growth, sector leadership, and positive broker recommendations, providing ample upside potential for H2 portfolio positioning.

However, the first week of June demonstrated the market’s sensitivity to short-term profit-taking, with the ASI shedding points and several stocks losing value, even among previously strong performers.

  • This pullback has affected valuations, tempering the aggressive gains from the rally and highlighting that some stocks are now trading closer to fair value.

Despite this moderation, the five highlighted stocks maintain solid fundamentals, attractive intrinsic valuations, and analyst-supported target prices, suggesting they remain high-conviction picks for investors seeking both growth and resilience.

Investors should therefore balance optimism from the rally with caution, selectively positioning in fundamentally strong stocks that can weather short-term volatility while aiming for sustainable returns in H2 2026.