The Alpha momentum screens apply the idea of momentum not only to share price performance, but also to expected profit growth. The screen looks for strong forecast earnings per share (EPS) growth, but more importantly it looks for an improving trend in broker expectations.
Highlights this month:
- The Main market screen, applied to the FTSE All Share, now only has one company – Fenner (FENR) which is in the process of being taken over by Michelin (ML:FP) – passing all eight momentum tests. Last month Easyjet (EZJ) and Wizz Air (WIZZ) also had perfect scores. Of the companies that now pass seven out of eight tests, three are new to the screen.
- The FTSE All Small screen, still sees Haynes Publishing (HYNS) meeting all criteria. Huntsworth (HNT) and Robert Walters (RWA) are joined by Gocompare (GOCO) in passing seven; but Bioquell (BQE) and XP Power (XPP) now score worse.
- Has Fevertree (FEVR) peaked? The drinks manufacturer is one of the darlings of Aim but now fails two of eight criteria (down from a 7/8 score last month). Previously no companies scored a perfect eight from our Aim momentum screen but now Symphony Environmental Technologies (SYM) and Restore (RST) pass all the tests.
