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Zacks.com featured highlights include Cencora, Raymond James and Cintas
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For Immediate Release
Chicago, IL – November 26, 2024 – Stocks in this week’s article are Cencora, Inc. (COR - Free Report) , Raymond James Financial (RJF - Free Report) and Cintas Corp. (CTAS - Free Report) .
Scoop Up These 3 GARP Stocks to Receive 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. Cencora, Inc., Raymond James Financial and Cintas Corp. 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 three of the five stocks that made it through the screening process:
Cencora is one of the world’s largest pharmaceutical service companies. It focuses on providing drug distribution and related services to reduce healthcare costs and improve patient outcomes. The company is well-positioned to deliver long-term sustainable growth on the back of its diverse and inclusive teams.
This Zacks Rank #2 company is an ideal partner for manufacturers looking to launch products. This is due to its extensive worldwide distribution network and global platform of commercialization services.
Thanks to its growing presence in the pharmaceutical industry, Cencora can establish partnerships with pharmaceutical companies at an early stage of product development and market itself as an integrated partner capable of assisting in the successful commercialization of its products (in addition to providing logistics and distribution services). These factors are likely to have favored the stock’s growth. You can see the complete list of today's Zacks #1 Rank stocks here.
Cencora has gained 19.3% in the year-to-date period. It has a trailing four-quarter earnings surprise of 6.97%, on average. The Zacks Consensus Estimate for COR’s fiscal 2025 earnings has moved north by 1% to $14.9 per share over the past 30 days.
Raymond James Financial provides financial services mainly in the United States and Canada. Acquisitions, which enhance the company’s product offerings, diversify revenues and expand its footprint, are expected to continue bolstering the top line. Our estimate for net revenues implies seeing a CAGR of 6.9% by fiscal 2026. This Zacks Rank #2 company's solid liquidity position will likely keep its capital distribution activities sustainable.
The majority of Raymond James’ businesses have been performing relatively well amid stiff competition. The PCG segment is one of the key contributors to revenue growth. Net revenues in the segment reflected a compound annual growth rate (CAGR) of 15.9% over the last three fiscal years ended 2023. The uptrend continued in the first nine months of fiscal 2024.
Raymond James Financial has gained 48.1% in the year-to-date period. It has a trailing four-quarter earnings surprise of 7.78%, on average. The Zacks Consensus Estimate for RJF’s fiscal 2025 earnings has moved north by 5.2% to $10.83 per share over the past 30 days.
Cintas provides specialized services to businesses of all types throughout North America. It also operates in Europe, Asia and Latin America. This Zacks Rank #2 company designs, manufactures and implements corporate identity uniform programs, and provides entrance mats, restroom supplies, promotional products, and first aid and safety products for diversified businesses.
Cintas has been experiencing strength in its Uniform Rental and Facility Services segment, driven by growth in its customer base and the introduction of additional products and services to existing customers. The company’s focus on strengthening its product portfolio, along with investments in technology and existing facilities, should continue to drive its performance.
Also, its focus on operational executions and pricing actions is helping it maintain a healthy margin. The company is focused on acquiring businesses to access new customers and product lines. CTAS’ acquisition of Paris Uniform Services (in March 2024) boosted its presence in Pennsylvania, New York, Maryland and West Virginia. Also, the buyout of SITEX (in February 2024) strengthened its market position in the central Midwest region.
Cintas has gained 47.2% in the year-to-date period. It has a trailing four-quarter earnings surprise of 6.65%, on average. The Zacks Consensus Estimate for CTAS’s fiscal 2025 earnings has been unchanged at $4.23 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 include Cencora, Raymond James and Cintas
For Immediate Release
Chicago, IL – November 26, 2024 – Stocks in this week’s article are Cencora, Inc. (COR - Free Report) , Raymond James Financial (RJF - Free Report) and Cintas Corp. (CTAS - Free Report) .
Scoop Up These 3 GARP Stocks to Receive 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. Cencora, Inc., Raymond James Financial and Cintas Corp. 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 three of the five stocks that made it through the screening process:
Cencora is one of the world’s largest pharmaceutical service companies. It focuses on providing drug distribution and related services to reduce healthcare costs and improve patient outcomes. The company is well-positioned to deliver long-term sustainable growth on the back of its diverse and inclusive teams.
This Zacks Rank #2 company is an ideal partner for manufacturers looking to launch products. This is due to its extensive worldwide distribution network and global platform of commercialization services.
Thanks to its growing presence in the pharmaceutical industry, Cencora can establish partnerships with pharmaceutical companies at an early stage of product development and market itself as an integrated partner capable of assisting in the successful commercialization of its products (in addition to providing logistics and distribution services). These factors are likely to have favored the stock’s growth. You can see the complete list of today's Zacks #1 Rank stocks here.
Cencora has gained 19.3% in the year-to-date period. It has a trailing four-quarter earnings surprise of 6.97%, on average. The Zacks Consensus Estimate for COR’s fiscal 2025 earnings has moved north by 1% to $14.9 per share over the past 30 days.
Raymond James Financial provides financial services mainly in the United States and Canada. Acquisitions, which enhance the company’s product offerings, diversify revenues and expand its footprint, are expected to continue bolstering the top line. Our estimate for net revenues implies seeing a CAGR of 6.9% by fiscal 2026. This Zacks Rank #2 company's solid liquidity position will likely keep its capital distribution activities sustainable.
The majority of Raymond James’ businesses have been performing relatively well amid stiff competition. The PCG segment is one of the key contributors to revenue growth. Net revenues in the segment reflected a compound annual growth rate (CAGR) of 15.9% over the last three fiscal years ended 2023. The uptrend continued in the first nine months of fiscal 2024.
Raymond James Financial has gained 48.1% in the year-to-date period. It has a trailing four-quarter earnings surprise of 7.78%, on average. The Zacks Consensus Estimate for RJF’s fiscal 2025 earnings has moved north by 5.2% to $10.83 per share over the past 30 days.
Cintas provides specialized services to businesses of all types throughout North America. It also operates in Europe, Asia and Latin America. This Zacks Rank #2 company designs, manufactures and implements corporate identity uniform programs, and provides entrance mats, restroom supplies, promotional products, and first aid and safety products for diversified businesses.
Cintas has been experiencing strength in its Uniform Rental and Facility Services segment, driven by growth in its customer base and the introduction of additional products and services to existing customers. The company’s focus on strengthening its product portfolio, along with investments in technology and existing facilities, should continue to drive its performance.
Also, its focus on operational executions and pricing actions is helping it maintain a healthy margin. The company is focused on acquiring businesses to access new customers and product lines. CTAS’ acquisition of Paris Uniform Services (in March 2024) boosted its presence in Pennsylvania, New York, Maryland and West Virginia. Also, the buyout of SITEX (in February 2024) strengthened its market position in the central Midwest region.
Cintas has gained 47.2% in the year-to-date period. It has a trailing four-quarter earnings surprise of 6.65%, on average. The Zacks Consensus Estimate for CTAS’s fiscal 2025 earnings has been unchanged at $4.23 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/2374564/scoop-up-these-3-garp-stocks-to-receive-handsome-returns
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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.