- Royal Mail Group is the only FTSE All Share company to pass 8/8 momentum tests.
- Top-ranking companies on Aim are forward-looking businesses positioned for growth trends.
Despite some recent delivery set-backs due to Covid-related staffing issues, investors seem to be buying into the longer-term story for Royal Mail (RMG). The share price has been on a tear since agreement on pay, hours and job security was reached with the Communication Workers Union (CWU) and earnings upgrade momentum is also positive, making Royal Mail the only FTSE All Share company to pass all our tests.
Investors may still have some questions about how rapidly Royal Mail can modernise but over on Aim, the companies topping our junior market momentum screen aren’t as constrained by legacy issues. Impax Asset Management Group (IPX) tops the Aim screen with investors continuing to be impressed by the trend to green investing, which benefits its funds. Perhaps there are cheaper ways to play the trend right now, but this is a mega theme and the earnings upgrade momentum tests show the market has confidence.
The other Aim company getting top marks is Frontier Developments (FDEV). Strong Christmas trading has buoyed the internet game manufacturer but there have been delays to releasing a flagship new game. Still, wanting to make sure things are right for the loyal and growing gaming fanbase is a good sign and, as our screen shows, analysts and investors remain positive.
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