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AlphaScreens: Dilemma time for running winners

Momentum investing can sometimes be a leap of faith but our screen provides helpful indicators.
AlphaScreens: Dilemma time for running winners

If our FTSE All Share momentum screen is anything to go by, then there could be more upside for IC Buy tip Liontrust (LIO). The asset manager, which specialises in active funds, has bucked a trend of negative flows for equity investments in 2019 and as well as share price momentum, our earnings upgrade tests shows analysts remain confident.

  • Another company that’s shares have been on a tear in 2019 is hobby retailer Games Workshop (GAW). It fails just one of our tests – the next full year forecast EPS growth. It’s useful to keep an eye on such metrics as, when growth forecasts drop off, it could be time to start taking at least some profits.
  • Engineering design, software and information management group AVEVA (AVV), scores full marks on our screen. The IC companies team have the business on a hold, however, citing the business is on a long Enterprise Value to cash profits multiple. This illustrates the dilemma of buying momentum, it can be a leap of faith when weighed up against historic multiples - especially during uncertain times for the world economy.  
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