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If you are looking for a profitable portfolio of stocks offering the best of value and growth investing, try the growth at a reasonable price or GARP strategy.
The strategy helps investors gain exposure to undervalued stocks with impressive prospects. Unlike a blend strategy, a portfolio that uses GARP investing is expected to include stocks that offer the best value and growth investing. HCA Healthcare, CrediCorp, Booz Allen Hamilton and Hubbell are some GARP stocks that hold promise.
GARP Metrics — Mix of Growth & Value Metrics
The GARP strategy seeks to offer an ideal investment by utilizing the best features of value and growth investing. Investors adopting the GARP approach prefer buying stocks priced below the market or any reasonable target determined by fundamental analysis. These stocks also have solid prospects in terms of cash flow, revenues, earnings per share (EPS) and so on.
Growth Metrics
A strong earnings growth history and impressive earnings prospects are the main concepts that GARP investors borrow from the growth investing strategy. However, instead of super-normal growth rates, pursuing stocks with a more stable and reasonable growth rate is a tactic of GARP investors. Hence, growth rates between 10% and 20% are considered ideal under the GARP strategy.
Another metric that growth and GARP investors consider is the return on equity (ROE). GARP investors look for a strong and higher ROE than the industry average to identify superior stocks. Stocks with positive cash flows find precedence under the GARP plan.
Value Metrics
GARP investing prioritizes the popular value metrics — the price-to-earnings (P/E) and price-to-book (P/B) ratios. Though this investing style picks stocks with higher P/E ratios than value investors, it avoids companies with extremely high P/E ratios.
Using the GARP principle, we ran a screen to identify stocks that should offer solid returns in the near term.
Here are four of the six stocks that made it through the screening process:
HCA Healthcare is the largest non-governmental operator of acute care hospitals in the United States. These hospitals provide outpatient services, such as outpatient surgery, laboratory, radiology, respiratory therapy, cardiology and physical therapy. HCA currently sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.
HCA Healthcare has gained 31.7% year to date. It delivered a trailing four-quarter earnings surprise of 8.24%, on average. The Zacks Consensus Estimate for HCA’s 2024 earnings has moved 4.4% north to $21.84 per share over the past 30 days.
CrediCorp is a limited liability company that acts as a holding company, coordinates the policy and administration of its subsidiaries, and engages in investing activities. BAP presently carries a Zacks Rank #2.
CrediCorp has gained 38.3% year to date. It delivered a trailing four-quarter earnings surprise of 0.99%, on average. The Zacks Consensus Estimate for BAP’s 2024 earnings has moved 0.7% north to $18.76 per share over the past 60 days.
Booz Allen Hamilton is a provider of management and technology consulting, analytics, engineering, digital solutions, mission operations, and cyber expertise to the United States and international governments, corporations and not-for-profit organizations. The company currently carries a Zacks Rank #2.
Booz Allen Hamilton has gained 11.9% year to date. It has a trailing four-quarter earnings surprise of 5.8%, on average. The Zacks Consensus Estimate for fiscal 2025 earnings has moved 2% north to $6.05 per share over the past 60 days.
Hubbell designs and manufactures electrical and electronic products, such as plugs, receptacles, connectors, data signal processing components, lighting fixtures, and high-voltage test and measurement equipment. The company carries a Zacks Rank #2 at present.
Hubbel has gained 12.4% in the year-to-date period. It has a trailing four-quarter earnings surprise of 3.4% on average. The Zacks Consensus Estimate for HUBB’s 2024 earnings has been unchanged at $16.33 per share over the past 30 days.
Get the remaining stocks on the list and start testing this and other ideas. It can all be done with the Research Wizard stock picking and back-testing software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in and see what gems come out.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks.com featured highlights HCA Healthcare, CrediCorp, Booz Allen Hamilton and Hubbell
For Immediate Release
Chicago, IL – July 30, 2024 – Stocks in this week’s article are HCA Healthcare (HCA - Free Report) , CrediCorp (BAP - Free Report) , Booz Allen Hamilton (BAH - Free Report) and Hubbell (HUBB - Free Report) .
Scoop Up These 4 GARP Stocks for Handsome Returns
If you are looking for a profitable portfolio of stocks offering the best of value and growth investing, try the growth at a reasonable price or GARP strategy.
The strategy helps investors gain exposure to undervalued stocks with impressive prospects. Unlike a blend strategy, a portfolio that uses GARP investing is expected to include stocks that offer the best value and growth investing. HCA Healthcare, CrediCorp, Booz Allen Hamilton and Hubbell are some GARP stocks that hold promise.
GARP Metrics — Mix of Growth & Value Metrics
The GARP strategy seeks to offer an ideal investment by utilizing the best features of value and growth investing. Investors adopting the GARP approach prefer buying stocks priced below the market or any reasonable target determined by fundamental analysis. These stocks also have solid prospects in terms of cash flow, revenues, earnings per share (EPS) and so on.
Growth Metrics
A strong earnings growth history and impressive earnings prospects are the main concepts that GARP investors borrow from the growth investing strategy. However, instead of super-normal growth rates, pursuing stocks with a more stable and reasonable growth rate is a tactic of GARP investors. Hence, growth rates between 10% and 20% are considered ideal under the GARP strategy.
Another metric that growth and GARP investors consider is the return on equity (ROE). GARP investors look for a strong and higher ROE than the industry average to identify superior stocks. Stocks with positive cash flows find precedence under the GARP plan.
Value Metrics
GARP investing prioritizes the popular value metrics — the price-to-earnings (P/E) and price-to-book (P/B) ratios. Though this investing style picks stocks with higher P/E ratios than value investors, it avoids companies with extremely high P/E ratios.
Using the GARP principle, we ran a screen to identify stocks that should offer solid returns in the near term.
Here are four of the six stocks that made it through the screening process:
HCA Healthcare is the largest non-governmental operator of acute care hospitals in the United States. These hospitals provide outpatient services, such as outpatient surgery, laboratory, radiology, respiratory therapy, cardiology and physical therapy. HCA currently sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.
HCA Healthcare has gained 31.7% year to date. It delivered a trailing four-quarter earnings surprise of 8.24%, on average. The Zacks Consensus Estimate for HCA’s 2024 earnings has moved 4.4% north to $21.84 per share over the past 30 days.
CrediCorp is a limited liability company that acts as a holding company, coordinates the policy and administration of its subsidiaries, and engages in investing activities. BAP presently carries a Zacks Rank #2.
CrediCorp has gained 38.3% year to date. It delivered a trailing four-quarter earnings surprise of 0.99%, on average. The Zacks Consensus Estimate for BAP’s 2024 earnings has moved 0.7% north to $18.76 per share over the past 60 days.
Booz Allen Hamilton is a provider of management and technology consulting, analytics, engineering, digital solutions, mission operations, and cyber expertise to the United States and international governments, corporations and not-for-profit organizations. The company currently carries a Zacks Rank #2.
Booz Allen Hamilton has gained 11.9% year to date. It has a trailing four-quarter earnings surprise of 5.8%, on average. The Zacks Consensus Estimate for fiscal 2025 earnings has moved 2% north to $6.05 per share over the past 60 days.
Hubbell designs and manufactures electrical and electronic products, such as plugs, receptacles, connectors, data signal processing components, lighting fixtures, and high-voltage test and measurement equipment. The company carries a Zacks Rank #2 at present.
Hubbel has gained 12.4% in the year-to-date period. It has a trailing four-quarter earnings surprise of 3.4% on average. The Zacks Consensus Estimate for HUBB’s 2024 earnings has been unchanged at $16.33 per share over the past 30 days.
Get the remaining stocks on the list and start testing this and other ideas. It can all be done with the Research Wizard stock picking and back-testing software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in and see what gems come out.
Click here to sign up for a free trial of the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2311257/scoop-up-these-4-garp-stocks-to-receive-handsome-returns
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.