Some companies score well on our growth at the right price (GARP) screen, despite being in sectors that face challenges. Possibly they are still not rated expensive by our screen because their share prices are tempered by nervousness about headwinds faced by other firms in the same or similar industries. When evaluating the results of mechanical screens, it’s good to apply qualitative analysis alongside empirical evidence and think why a company which a screen has highlighted may (or may not) have potential to outperform. In other words, are there reasons the growth side of the GARP calculation may come unstuck?
- Our GARP screen for the FTSE All Share now only has two companies which pass all 8 tests. Page Group (PAGE) and Shaftesbury (SHB), which due to its diverse and quality portfolio may well prove more resilient than other property companies, are still meeting full criteria. Packaging group RPC (RPC) no longer achieves a perfect score.
- Our small-cap screen, which uses the FTSE All Small Index as its selection universe, still sees multi-channel retailer Bonmarche (BON) and Haynes Publishing (HYNS), achieving a 7/7 score.
- Our screen of Aim-listed companies, which also has seven rules, has five companies that meets them all. The newest addition is Dewhurst (DWHT), the manufacturer of specialist electrical components.
