Picture: 123RF/PHONGPHAN SUPPHAKANKAMJON
Picture: 123RF/PHONGPHAN SUPPHAKANKAMJON

Gerbrand Smit from NEFG Fund Managers chose Standard Bank as his stock pick of the day and Jean Pierre Verster from Protea Capital Management chose Humana.

Smit said: “Standard Bank is trading at about a 9-9.5% PE [price-earnings] multiple for the full year’s earnings, which is in the long term cheap for them, probably 20% undervalued.”

Verster said: “Humana is a health insurer and they had a deal with Discovery. I’ve got a bit of a cold at the moment so it made me look at the health-care stocks and Humana is one of the big US health insurers.”

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