- Three FTSE All Share companies pass 9/9 quality tests
- Several famous quality stocks are ranking highly but do miss some criteria
Several of the top ranking FTSE All Share companies according to our quality screen have also enjoyed positive recent share price momentum. Three companies pass 9/9 tests: data and credit scoring business Experian (EXPN); Spirent Communications (SPT) a specialist in new generation internet, data and mobile connectivity; and Hikma Pharmaceuticals (HIK). The first two companies have made double-digit share price gains in the last three months.
Other companies that don’t quite pass all our tests but have been popular with investors over the summer include IT consulting and solutions business Kainos Group (KNOS), which is up 37 per cent in three months. It does now fail our genuine value test based on a price to earnings growth ratio, which is a factor to pause for thought over.
Games Workshop (GAW) now fails the same test and its share price momentum has flatlined somewhat in the last three months.
Other quality stocks that have had strong positive momentum include specialty chemicals business Croda (CRDA), although it now fails our return on equity (ROE) and margin growth requirements. Halma (HLMA) the manufacturer of essential products for industry, agriculture and medical use fails the same two tests. Again, although this is a brilliant company, investors should examine growth prospects carefully.
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