At this stage in the economic cycle there is a reluctance among analysts to predict double digit earnings growth for companies in the short to medium term. This is evidenced by the fact no FTSE All Share company passes all eight tests of our share price and earnings momentum screen.
- Of the five companies that fail just one test, private equity investment trust HgCapital (HGT) fails on the requirement for forecast earnings growth of over 10 per cent in the next full year. The other four companies fail on the test that states annualised forecast earnings growth must be over 10 per cent over the next two full years.
- There are a few more darlings on the Aim market, however. There are five companies that pass every price and earnings momentum test. These companies are mostly well known to investors: AB Dynamics (ABDP), Gamma Communications (GAMA), boohoo (BOO), Fevertree Drinks (FEVR) and medical IT solutions provider Instem (INS).
