Ed’s latest article contains new research answering a question that we often hear: is a sudden jump in StockRank a buying signal?
Ed’s piece provides a summary of his findings ahead of July’s in-depth webinar, but the TL;DR is that big jumpers often do outperform. This effect is seen most strongly among stocks with a market cap below £350m, so for this week’s Stock Pitch I’ve decided to look at one of the small cap stocks highlighted by Ed’s research.
IG Design (LON:IGR) is a business that will be familiar to many subscribers. Recent years have seen the business suffer something of a mid-life crisis following in ill-fated US acquisition. But that’s now in the past and the current business looks a much more tempting proposition to me.
IG Design has also recently enjoyed a big StockRank Jump, placing it firmly in the cross-hairs of Ed’s latest strategy:
Share price at the time of publication: 78p
Market cap: £73m
Disclosure: at the time of publication, Roland has no position in IGR.
Source: IG Design FY26 presentation
The Pitch
Every year, giftware group IG Design supplies more than 550m items to over 3,800 retailers across the UK, Europe and Australia. Most of its products – such as wrapping paper, gift bags and cards – are consumable and require predictable repeat purchases at various points each year.
After an ill-fated attempt to expand in North America through a large acquisition, I think the company has now delivered on its promise to repair the damage. IG Design now looks more streamlined, profitable and lower risk to me than it did a year ago. I can now see several potential catalysts for a re-rating.
The StockRanks also have a positive view, rating IG Design as a Super Stock with strong momentum and improving quality and value:
The Big Picture
Annual sales of more than £200m speak to the volume and market share of this business, which supplies many of the biggest retailers in the UK and Europe – names such as Tesco, Action and Aldi feature on IG Design’s customer roster.
The case for an investment is simple: the balance sheet has been repaired,…
