- Civil aerospace remains a theme for momentum shares
- Amazon powers on in the U.S.
Rolls-Royce Holdings (RR.) shares had a bit of a wobble when Citigroup investment bank moved their rating from buy to hold but the overall consensus on the shares remains positive. The share price has gained over one, three, six and twelve months (up c. 90 per cent over that last timeframe) so still easily qualifies as a momentum stock, and the price performance is underpinned by the fact guidance for profit and free cash flow was raised in the past year. Citigroup’s argument is that the turnaround story and underlying growth drivers are all baked in the price, but this is only one opinion and besides, ‘hold’ doesn’t mean ‘sell’ for investors who are sitting on gains. The release of full year results at the end of February is something to look out for.
Specialist distribution services business Diploma (DPLM) no longer scores highly like it did before Christmas. Earnings growth is forecast but this is at a relatively modest rate and its share price isn’t in positive territory over enough of our timeframes in the momentum screen for it to continue featuring.
