Galliford Try: From Style Neutral to Super Stock

Investors are more likely to outperform the market by investing in profitable, financially stable companies that have rising share prices and are still cheap - at least according to finance academics. For instance, Professor Robert Novy-Marx explains that ‘tilts towards value, momentum and profitability have outperformed the market’. In terms of Stockopedia’s StockRank framework for classifying shares, companies with this profile are called ‘Super Stocks’. They often have strong Value, Quality and Momentum Ranks (see here).

On 12 September, the house builder Galliford Try (LON:GFRD) published its annual financial statements and the company’s StockRank Style changed from ‘neutral’ to Super Stock. In this piece we take a closer look at Galliford Try’s respective Quality, Value and Momentum Ranks in order to discover why it has become a ‘Super Stock’ and explore what this means for the firm’s future prospects…

What does Galliford Try do?

Galliford Try is one of the UK’s largest housebuilding and construction companies. The company has three divisions: Linden Homes develops private homes for sale; the ‘Partnerships amp; Regeneration’ division works with local authorities to supply mixed-tenure housing; while the ‘Construction’ division tenders for construction contracts in the public and regulated sectors. The firm has...