Join our community of smart investors

AlphaScreens: GARP highlights cyclicals

At this stage of the market and economic cycles, the growth at right price (GARP) screen is struggling to unearth many companies that offer a magic combination of value and growth.
November 19, 2018

Not many companies have passed all eight of the tests for FTSE All Share companies in Algy Hall’s growth at right price (GARP) screen. Only buildings material supplier Grafton (GFTU), packaging specialist Macfarlane (MACF) and recruiter Page group (PAGE) score 8/8.  

In the FTSE All Small Companies screen, which has only seven tests, it is still small specialist REITs that score well. Both the Target Healthcare REIT (THRL) and GCP Student Living (DIGS) should also be valued against metrics other than the PEG ratio that we use here, however.

Our Aim companies screen also uses the seven test criteria. Among the nine companies that pass all of these tests, specialist software provider Elecosoft (AIM:ELCO) and Scottish housebuilder Springfield Properties (AIM:SPR) are new this month. 

Download PDF