Join our community of smart investors

Quality shares for the big reopening

Whet the whistle with quality shares as the UK sups on some freedom.
April 12, 2021
  • Value rebounds may have been priced in already, but quality endures
  • Main market sees 32 companies pass at least 7/9 quality tests
  • Aim market has 65 shares that score at least 7/9

Britain is starting to re-open for business in the hope that the worst of the Covid-19 nightmare has passed. The stock market is efficient at  pricing in the potential rebounds in sales, so early value may have been had. However, the strategy of picking quality companies is one for the long term and some good businesses are not yet looking too expensive.

On the main market, three companies pass 9/9 quality tests this month. Hikma Pharmaceuticals (HIK) has been a good share to own in the pandemic and it has long-term opportunities from the manufacture of generic medicines. The other companies to score full marks are precious metals miner Polymetal International (POLY) and Spirent Communications (SPT), which specialises in digital connectivity. 

Other quality favourites like Games Workshop (GAW), Britvic (BVIC) and Diageo (DGE) have scored highly. There are also a few housebuilders high on the list, although these are companies investors should approach with caution and discernment given the many uncertainties the sector will face in the next 18 months.

Download PDF