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Analysts keep earnings faith with a select group of companies

Forecasting profits is almost impossible in these markets but patterns are emerging in our momentum screen.
Analysts keep earnings faith with a select group of companies

Share prices have oscillated wildly on sentiment about government and central bank stimulus and there is little visibility at all on company earnings. Some of the companies that have fared better include those with specialties that are needed in the coronavirus lock down, others are part of long-term trends that are perhaps being accelerated by the response to the crisis. 

  • Few companies score well on our momentum screen but there are patterns emerging in the types of business that analysts and investors are showing faith in. Food delivery business Ocado (OCDO) has at times in its history been a dog, and at other times a darling of the market. It passes 6/8 tests, which is good in these unsettled times, but investors should reacquaint themselves with both sides of the investment case.
  • Other FTSE All Share companies scoring well include gold miner Polymetal (POLY), protective equipment specialist Avon Rubber (AVON), and online bingo and gambling games company Gamesys (GYS).
  • On Aim, the theme of niche technology businesses and precious metal miners is continued. The caveat for bold investors is, however, to check solvency positions and cash flows carefully.
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