The NGX All-Share Index has already gained 29.27% so far in 2026, a sharp contrast to the 2.66% recorded in the same period last year.
At this pace, the market is not just having a strong start; it is on track to challenge, or even surpass, the 51.49% return recorded in 2025, its best performance in nearly 2 decades.
At this pace, the market is not just having a strong start; it is on track to challenge, or even surpass, the 51.49% return recorded in 2025, its best performance in over 18 years.
At this pace, this is where doubt begins to creep in. Because when prices rise this fast, many, questions start to crop up:
- “Should I buy now or wait?”
- “Have I already missed the opportunity?”
- “If I buy now, am I buying at the top?”
It’s a valid fear. Nobody wants to enter the market just before a pullback. In a market like Nigeria, where sentiment can change quickly, that hesitation is even more understandable.
So, how do you evaluate when to buy and when to wait for a pullback in the market?
Is now a good time to invest? If you’re looking to invest in your future, 5, 10, or 40 years from now, now is as good a time as ever to buy stocks.
It is important to remember that the market is forward-looking. So, if you invest consistently over time, putting more cash into your investments every month or so you will end up catching a correction.
Most importantly, it is advisable to look for undervalued stocks. Because even though the market is up nearly 30%, not everything in it has moved the same way.
Take the banking sector, for instance.
At first glance, you would expect bank stocks to have already rallied significantly alongside the broader market. But a closer look tells a different story.
Many of these banks are still trading at relatively low levels compared to how much money they are now making.
Across, the banks are still trading at what investors call low P/E ratios around 2x to 4x. In simple terms, what that means is for every N1 these banks are making, you are only paying about N2 to N4 to own that business. That is considered cheap.
When you consider how fast these banks are growing, they look even cheaper, with PEG ratios below 1.
In simple terms, investors are still paying a small price for businesses that are growing their profits rapidly.
Some of these banks are increasing earnings by over 50%, yet their share prices have not fully caught up with that growth.
Specifically:
- Access Holdings Plc is trading at a P/E of 2.09, with earnings growth of 53.5% and a PEG ratio of 0.04
- UBA Plc has a P/E of 2.20, earnings growth of 61.4%, and a PEG of 0.04
- First HoldCo Plc stands out even more, with a P/E of 2.08, growth of 66.2%, and a PEG of just 0.03
Even slightly more re-rated names still look attractive:
- Zenith Bank Plc trades at a P/E of 4.37 with PEG of 0.13
- GTCO Plc trades at a P/E of 6.23 and PEG of 0.16
But then, as you move away from banking, the story begins to change. In oil and gas, parts of the market have already started to adjust.
The companies are growing strongly, with earnings up by as high as 68%, but unlike many bank stocks, their prices have already begun to reflect the growth.
Investors are now paying more to own some of these stocks, a clear sign that the market has begun to price in their future potential.
- For instance, Seplat Energy now trades at a higher valuation multiple, around 37 times earnings, reflecting stronger investor confidence in its long-term prospects.
- Similarly, Aradel Holdings has seen significant price appreciation, with its valuation rising to about 18 times earnings as growth expectations are increasingly priced in.
- However, the story is not uniform across the sector. Oando still shows signs of undervaluation, with strong earnings growth but a relatively low share price compared to its peers.
But then, there are also names where the story tilts even further. Take Conoil Plc for example.
- On the surface, the company is delivering strong performance. Its earnings per share stand at about N3.23, with profit growth of roughly 57%.
- But despite that growth, the stock is already trading at a P/E of 63x, with a PEG ratio of 1.11.
- This means that investors are already paying a very high price for Conoil relative to its growth.
So unlike banking stocks, where growth is high, and prices are still low, Conoil represents the other end of the spectrum.
Investor takeaways
- You cannot time the market. If you wait for a big crash, you may miss the current opportunities.
- The market is up 29%, but some stocks are still cheap — especially in banking.
- The smarter approach is to focus on where value still exists.
- Even at that, you must pick carefully within the sector.
- The question is no longer “Should I buy now or wait?” It is “Which stocks has the market not fully priced yet?”
