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Aim's magnificent seven quality shares

London's junior market leads the way in this month's Alpha quality screen.
February 1, 2021

 

  • Aim companies with specialist industrial niches score well against our nine quality tests. 
  • 37 Aim companies pass at least 7/9 tests
  • No large cap main market shares pass all the tests but big names like Unilever, Rio Tinto and Diageo rank highly.

Aim stocks are once again scoring the best against our Alpha quality screen rules, with 37 companies passing at least 7/9 tests of which seven companies scored 9/9. 

Leading lights include Boohoo Group (BOO), which has made some decent efforts to consolidate its position with acquisitions and further investment in its website. It seems that, with the shares up by over a quarter in three months, the market has forgiven it after last year’s controversy over supplier factory conditions. 

This month’s magnificent seven also includes SDI Group (SDI), a company which manufactures niche scientific and technology products; Cerillion (CER), a software solutions business; RWS Holdings (RWS), which provides intellectual property support services; Renew Holdings (RNWH), the engineering contractor; and Cohort (CHRT), the digital specialist for defence industries. 

Miner Pan African Resources (PAF) completes our Aim quality top set. Precious metals have been in the headlines this week and mining companies (which pay dividends, too) are a good exposure for investors with a longer horizon and who aren’t just speculating on underlying prices of assets like gold and silver. 

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