What’s striking about our latest growth at a reasonable price (GARP) screen results is how few of the UK-listed companies, which are forecast to see profit growth, have enjoyed share price momentum in the past three months. True, the Iran war and the prospect of higher inflation has changed the calculus for discount rates, but should investors be more positive about stocks in companies which in many many cases analysts are still forecasting will see earnings growth hit double-digit percentages?
This week’s omnishambles at Westminster hasn’t exactly helped either but sometimes a load of unhelpful noise can be a good time to take stock of which companies are scoring well on our screens.
Among large caps, Airtel Africa (AAL) stands out as a growth story and although its shares were still up on a three month basis, with another mini-surge after its full year numbers came out, the shares have pulled back hard in recent sessions. The concerns we raised about the company’s debt levels may mean staying on the sidelines is wise for now.
