Back to top

Press Releases

Zacks Equity Research

Zacks.com featured highlights: Activision Blizzard, Aetna, Boston Scientific, Affiliated Managers Group and Vantiv

ATVI AET BSX AMG VNTV

Trades from $3

For Immediate Release

Chicago, IL – October 07, 2016 - Stocks in this week’s article include: Activision Blizzard, Inc. (NASDAQ:(ATVI - Free Report) –Free Report),Aetna Inc. (NYSE:(AET - Free Report) –Free Report),Boston Scientific Corporation (NYSE:(BSX - Free Report) –Free Report),Affiliated Managers Group Inc. (NYSE:(AMG - Free Report) –Free Report) and Vantiv, Inc. (NYSE:(VNTV - Free Report) – Free Report).

Screen of the Week of Zacks Investment Research:

Magnify Your Portfolio Returns with These GARP Stocks

Investors looking for stocks that are available at discounted prices and also have solid growth potential may easily count on growth at a reasonable price or GARP strategy. This strategy is best suited for an environment where major benchmarks are witnessing a strong rebound in the latter half of a particular time frame after plunging in the first half. Rather than investing in both value and growth stocks like blend investors do, investors following GARP love to invest in undervalued stocks that offer solid growth prospects too.

GARP Strategy in Detail

Though investors following GARP consider popular metrics of both value and growth investing, the ideal range of these metrics is different from what is considered by value and growth investing. GARP investing employs popular value metrics – price-to-earnings (P/E) and price-to-book value (P/B) ratio – to evaluate whether a stock is undervalued or not.

In case of P/E ratio, investors following the GARP strategy look for a higher value of the ratio compared to value investors. However, they avoid picking companies with extremely high price-to-earnings ratios. On the other hand, like value investors, GARP investors give precedence to low P/B ratios. A ratio less than the industry average is preferred by GARP investors for choosing undervalued stocks.

The other metrics that are borrowed by GARP investors from the growth investing strategy are strong earnings growth history and impressive earnings growth prospects for the coming years. Unlike growth investors, GARP investors look for stocks with a more stable and reasonable growth rate instead of choosing those with extremely high growth rates. Growth rates between 10% and 20% are considered ideal per the GARP strategy.

Return on equity (ROE) is another growth metric used in GARP strategy. Here, those stocks that have higher ROE compared with the industry average are considered as strong ROE is an indicator of superior stocks.

In order to make the GARP strategy more profitable, we have only considered those with a favorable Zacks Rank – Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy).

Screening Parameters

• Zacks Rank less than or equal to #2
(Only Strong Buy and Buy rated stocks can get through.)

Last 5-year EPS & projected 3–5 year EPS growth rates between 10% and 20%
(Strong EPS growth history and prospects ensure improving business.)

ROE (over the past 12 months) greater than the industry average
(Higher ROE compared to the industry average indicates superior stocks.)

P/E and P/B ratios less than X-industry average
(P/E and P/B ratios less than that of the industry indicate that the stocks are undervalued.)

The use of these few criteria narrowed down the universe of over 7,700 stocks to only 12.

Here are five stocks from the 12 that made it through the screen:

Activision Blizzard, Inc. (NASDAQ:(ATVI - Free Report) – Free Report) is a worldwide pure-play online and console game publisher. This Zacks Rank #1 stock has an average four-quarter positive earnings surprise of 33.5%. You can see the complete list of today’s Zacks #1 Rank stocks here .

Aetna Inc. (NYSE:(AET - Free Report) – Free Report) is one of the nation's largest health benefits and insurance and financial services organizations. This Zacks Rank #2 stock has an average four-quarter positive earnings surprise of 7.3%.

Boston Scientific Corporation (NYSE:(BSX - Free Report) – Free Report) is a worldwide developer, manufacturer and marketer of minimally invasive medical devices. This Zacks Rank #2 stock has an average four-quarter positive earnings surprise of 6.3%.

Affiliated Managers Group Inc. (NYSE:(AMG - Free Report) – Free Report) is an asset management holding company, which acquires majority interests in mid-sized investment management firms. This Zacks Rank #2 stock has an average four-quarter positive earnings surprise of 1%.

Vantiv, Inc. (NYSE:(VNTV - Free Report) – Free Report) is an integrated payment processor engaged in providing advanced technology solutions for businesses and financial institutions. This Zacks Rank #2 stock has an average four-quarter positive earnings surprise of 4.5%.

Get the rest of the stocks on the list and start putting this and other ideas to the test. 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 to the Research Wizard today .

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance .

Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »

Sign up now for your free trial today and start picking better stocks immediately. And with the backtesting feature, you can test your ideas to see how you can improve your trading in both up markets and down markets. Don’t wait for the market to get better before you decide to do better. Start learning how to be a better trader today: https://at.zacks.com/?id=111

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here https://at.zacks.com/?id=112

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.

Get the full Report on ATVI - FREE

Get the full Report on AET - FREE

Get the full Report on BSX - FREE

Get the full Report on AMG - FREE

Get the full Report on VNTV - FREE

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch

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.

Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com

Visit: https://www.zacks.com/performance

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.