Digital and IT services firms top our FTSE All Share momentum screen this month. Both AVEVA (AVV) and Kainos (KNOS) score full marks. As ever it is worth looking beyond the numbers and doing further research - Investors Chronicle currently has AVEVA on a hold, partly due to the uncertain outlook for oil & gas customers. Our team are more positive on Kainos, which is exposed to growth in healthcare.
- Other momentum shares include quality businesses like Greggs (GRG) and JD Sports (JD.). Both companies only fail the requirement for a two-year annualised forecast earnings growth rate above 10 per cent. Reasons for more cautious outlooks are suggested in Phil Oakley’s analysis in some of his weekly Alpha updates.
- Aim shares that continue to excite the market include motor testing systems provider AB Dynamics (ABDP), internet cloud specialist Gamma Communications (GAMA) and precious metals miner Pan African Resources (PAF).
