- Retail businesses flagged in our growth at a reasonable price (Garp) screen
- It's more appropriate to judge smaller FTSE All Share businesses on small cap criteria
Clipper Logistics (CLG), the e-logistics and returns management specialist for the retail sector, has benefitted from the online mail order boom in lockdown. Although the shares have been on a tear for the last year, they are still reasonable value against analysts’ forecasts of future earnings, according to our screen.
No other company included in the FTSE All Share index passes all our large cap screening criteria. Some businesses, like gift retailer Card Factory (CARD), rank highly on the large cap screen but fail the more appropriate price to earnings growth (PEG) test that we have for small companies,, which is why it doesn’t appear in our Small Cap rankings. With lockdowns set to drag on for weeks, Card Factory is one to avoid.
Another retailer that ranks well in the large cap list is JD Sports (JD) (and valued at £8.28bn it is well-assessed against those criteria). This company has managed the challenges for retailers with physical outlets better than many contemporaries and although not tremendously cheap, the shares are reasonably priced for the recovery expectations analysts have. Although, of course, much of those expectations are predicated on lockdowns ending by Spring.
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