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Two momentum shares that could still go up a gear

Where companies have been hobbled by a troubled past the market is slow to react to good news.
Two momentum shares that could still go up a gear
  • Two out of three stocks we dive into from our earnings upgrade screen look very interesting
  • The other company we look at, is a case study for assessing growth by acquisition

Growth comes in many different forms: market-led, incremental expansion or step-change to name a few. This week, we look at an example of each of these and try to assess what is best for a business and for investors. Growth from whatever source needs to be transparent, well-grounded and trusted by shareholders. Our stocks this week also raise the question of whether markets need to forgive and forget past mistakes or problems - historic erring can create good buying opportunities if current strengths are being hobbled by past weaknesses.

  • Indivior (INDV)  – the opioid crisis or epidemic (mainly found in the US) is a major and growing healthcare issue with seemingly few successful solutions. Indivior is a pharmaceutical company selling drugs that enable those addicted to prescription painkillers to safely quit and end their dependency. Demand for such medication is growing fast and EPS are forecast to triple from 2020 to 2022, yet the shares trade on barely a market average PE. The share price does have a checkered history and all pharma stocks are on permanent watch for cautious news flow, but the caution and consequent discount here look overdone.   
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