This month, 14 companies pass all nine of our quality screen tests. This is less than in previous months. In September, for example, there were 19 stocks that passed. The screen is not infallible, there needs to be some interrogation of companies like housebuilders that are cyclical and have benefitted from Help to Buy inflating margins – Phil Oakley has covered several of the housebuilders in his Alpha round-ups.
- Other companies that have maintained a position at the top of our quality rankings include Diageo (DGE), Spirax-Sarco (SPX) and Domino’s Pizza (DOM). The question mark against the first two would centre on valuation and in the case of Domino’s operational issues, notably a food cost dispute with its franchisees.
- On Aim, biotech company Bioventix (BVXP), and data solutions provider D4t4 (D4T4) still lead the way.
