Economically sensitive stocks are once again scoring well on our GARP screen. Recruiters Page Group (PAGE) and Hays (HAS) still pass all eight tests for our FTSE All Share screen, as does specialist West End property company Shaftesbury (SHB), packaging specialist Macfarlane (MACF) and building products group Grafton (GFTU).
There are seven tests for companies on the FTSE Small Companies index and unlike last month, when there were no perfect scores, GCP Student Living (DIGS) and Target Healthcare REIT (THRL) meet all criteria. These results should, however, be approached with caution as price-to-earnings growth is not the best way to value property companies.
On Aim, eight companies meet all seven criteria. This is the same number as last month, although five of this month’s top companies in the screen are new. In part, this reflects how earnings growth expectations can change for smaller companies, especially in sectors like mining and technology.
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