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Vox Screens Stocks: John & Justin pick two stocks from a Momentum Screen
In a grim market we're looking for some good news, in this case companies that have seen their share price rise in the last 3 month and are forecast to continue to grow their earnings. That delivers a list of just 19 companies, which you can see below:
John's Pick is: Warpaint London
Warpaint sells branded cosmetics under the lead brand names of W7 and Technic. W7 is sold in the UK primarily to retailers and internationally to local distributors or retail chains. The Technic brand is sold in the UK and continental Europe with a significant focus on the gifting market, principally for high street retailers and supermarkets. In addition, Warpaint supplies own brand white label cosmetics produced for several major high street retailers. The Group also sells cosmetics using its other brand names of Man'stuff, Body Collection, Very Vegan, and Chit Chat.
After a difficult pandemic, Warpaint delivered a strong set of half-year figures in late September, with revenues hitting record levels and gross margins rising despite supply and freight cost inflation. The group's balance sheet is strong, giving it plenty of firepower to invest in further growth overseas and online, and increase shareholder returns at the same time. It's also helped by the fact that shoppers tend not to cut back on smaller treats when times are tough - the so-called 'lipstick effect' - and a focus on delivering high quality products at affordable prices. The order book is up over a third over the year, reflecting strong Christmas orders.
Justin's Pick is: Hollywood Bowl
Hollywood Bowl Group is the UK's largest ten-pin bowling operator, with a high-quality portfolio of 73 centres operating across the UK and Canada under the Hollywood Bowl, AMF, Splitsville (Canada) and Puttstars (mini-golf) brands. The Group specialises in operating large, high quality bowling centres, predominantly located in out-of-town multi-use leisure parks (typically co-located with cinema and casual dining sites) and large retail parks. The centres are designed to offer a complete family entertainment experience with each centre offering bowling lanes or mini-golf courses alongside on-site dining, licensed bars, and state-of-the-art family games arcades.