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4 GARP Stocks That Investors Can Scoop Up for Maximum Returns
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Key Takeaways
GARP strategy identifies undervalued stocks with solid growth prospects for maximum returns.
GARP combines value metrics like P/E ratios with growth rates between 10% and 25%.
RL, SYK, RGLD and ADSK represent promising GARP opportunities with strong fundamentals.
Growth at a reasonable price, or GARP, is an excellent strategy to earn quick investment profits. The GARP approach helps identify stocks priced below the market or any suitable target determined by a fundamental analysis.
The strategy helps investors gain exposure to stocks with impressive prospects and trading at a discount. GARP stocks have solid prospects in terms of cash flow, revenues, earnings per share (EPS) and other metrics.
A portfolio based on the GARP strategy comprises stocks that offer the best value and growth investment. Ralph Lauren (RL - Free Report) , Stryker (SYK - Free Report) , Royal Gold (RGLD - Free Report) and Autodesk (ADSK - Free Report) are some promising GARP stocks.
GARP Metrics — Mix of Growth & Value Metrics
The GARP strategy offers ideal investment options utilizing the best value and growth investing features. Investors adopting the GARP approach prefer stocks priced below the market or any reasonable target determined by fundamental analysis. The stocks have solid prospects based on cash flow, revenues, EPS, etc.
Growth Metrics
A strong earnings growth history and impressive earnings prospects are the primary concepts that GARP investors borrow from the growth investing strategy. However, instead of super-normal rates, pursuing stocks with a more stable and reasonable growth rate is a tactic of GARP investors. The GARP strategy considers growth rates between 10% and 20% ideal.
Another metric considered by growth and GARP investors is return on equity (ROE). GARP investors look for strong and higher ROE than the industry average to identify superior stocks. Moreover, stocks with a positive cash flow find precedence under the GARP plan.
Value Metrics
GARP investing prioritizes one of the popular value metrics — the price-to-earnings (P/E) ratio. The investing style picks stocks with higher P/E ratios than value investors, but it avoids companies with extremely high P/E ratios. The price-to-book value (P/B) ratio is also taken into consideration.
Using the GARP principle, we have run a screen to identify stocks that should offer solid returns in the near term.
Last five-year EPS & projected 3-5-year EPS growth rates between 10% and 25% (Strong EPS growth history and prospects ensure improving business.)
ROE (in the past 12 months) greater than the industry average (Higher ROE than the industry average indicates superior stocks.)
P/E and P/B ratios are less than the M-industry average (P/E and P/B ratios less than the industry indicate that the stocks are undervalued.)
Here are four out of the 11 stocks that made it through the screen. Each of the four stocks carries a Zacks Rank #2.
Ralph Lauren is benefiting from investor confidence in its robust brand equity, successful execution of its strategic transformation, and consistent performance across geographies and channels. RL’s strong pricing power, margin expansion, disciplined inventory and real estate management are key growth drivers for the long term.
Innovations like predictive buying and AI-enabled planning are improving inventory efficiency and responsiveness. Across platforms owned, wholesale and social, Ralph Lauren is not just keeping pace with digital trends but actively shaping them, creating immersive, emotionally resonant brand experiences that fuel both consumer loyalty and higher-margin sales.
Ralph Lauren is also making smart investments in prime real estate to future-proof its presence, such as acquiring its Polo flagship in SoHo and aligning with a broader DTC-led growth strategy that continues to strengthen profitability.
The stock has returned 24.9% in the year-to-date period. It has a trailing four-quarter earnings surprise of 8.49%, on average. The Zacks Consensus Estimate for RL’s fiscal 2026 earnings has moved 4.6% north to $14.63 per share over the past 30 days.
Stryker is poised for growth, driven by rising demand for robotic-assisted procedures, hospital capital expenditures and international expansion. Stryker is actively integrating new technologies such as AI-driven imaging and smart surgical systems to improve patient outcomes and maintain its competitive edge.
Stryker continues to evolve its Mako SmartRobotics platform with advanced features such as AI-driven 3D CT-based surgical planning and AccuStop haptic technology for highly precise implant placement. In late 2024, the company debuted Mako Spine and Shoulder in select markets and unveiled its fourth-generation Q Guidance modules — covering hip, knee, spine, and shoulder — at AAOS 2025. These strategic advancements position Stryker to extend its dominance in orthopedics into adjacent specialties through AI integration.
The stock has returned 4.6% in the year-to-date period. It has a trailing four-quarter earnings surprise of 3.3%, on average. The Zacks Consensus Estimate for SKT’s 2025 earnings has moved 1% north to $13.49 per share over the past 30 days.
Royal Gold has been benefiting from its solid streaming agreements. It is focused on allocating its strong cash flow to dividends, debt reduction and new businesses. Gold prices are currently at around $3,380 per ounce as U.S. tariff policies continue to drive safe-haven demand. Silver has also gained on the back of the recent expansion seen in the U.S. manufacturing sector. This rise in metal prices will likely boost the company’s results in the coming quarters.
RGLD is planning to acquire Sandstorm Gold in an all-stock deal, wherein it is offering 0.0625 Royal Gold shares for each Sandstorm share. RGLD has also inked a $196-million cash deal to buy Horizon Copper. Both transactions are expected to be completed in the fourth quarter of 2025. The addition of these assets from SAND and Horizon Copper will create a uniquely diversified global precious metals portfolio for Royal Gold with significant growth and exploration potential.
The stock has returned 29.4% in the year-to-date period. It has a trailing four-quarter earnings surprise of 16.5%, on average. The Zacks Consensus Estimate for RGLD’s 2025 earnings has moved 0.1% north to $7.48 per share over the past 30 days.
Autodesk develops model-based design, engineering and documentation software. The company serves customers in architecture, engineering and construction; product design and manufacturing; and digital media and entertainment industries.
Autodesk’s performance is gaining from new business growth, steady subscription renewal rates and strong competitive performance. Higher demand for its cloud-based products, mobile solutions and design suites is expected to drive the company’s revenues over the long haul. The rapid adoption of BIM 360 products and the success of the maintenance of the subscription program bode well for the growth of the company. Autodesk’s top-line growth is expected to remain strong, thanks to the demand for its AEC, AutoCAD and manufacturing product families.
The stock has declined 3.7% in the year-to-date period. It has a trailing four-quarter earnings surprise of 6.22%, on average. The Zacks Consensus Estimate for ADSK’s fiscal 2026 earnings has remained steady at $9.64 per share over the past 30 days.
You can get the remaining stocks on this list by signing up now for a 2-week free trial to the Research Wizard stock picking and backtesting software. You can also create your own strategies and test them first before making investments.
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.
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.
Image: Bigstock
4 GARP Stocks That Investors Can Scoop Up for Maximum Returns
Key Takeaways
Growth at a reasonable price, or GARP, is an excellent strategy to earn quick investment profits. The GARP approach helps identify stocks priced below the market or any suitable target determined by a fundamental analysis.
The strategy helps investors gain exposure to stocks with impressive prospects and trading at a discount. GARP stocks have solid prospects in terms of cash flow, revenues, earnings per share (EPS) and other metrics.
A portfolio based on the GARP strategy comprises stocks that offer the best value and growth investment. Ralph Lauren (RL - Free Report) , Stryker (SYK - Free Report) , Royal Gold (RGLD - Free Report) and Autodesk (ADSK - Free Report) are some promising GARP stocks.
GARP Metrics — Mix of Growth & Value Metrics
The GARP strategy offers ideal investment options utilizing the best value and growth investing features. Investors adopting the GARP approach prefer stocks priced below the market or any reasonable target determined by fundamental analysis. The stocks have solid prospects based on cash flow, revenues, EPS, etc.
Growth Metrics
A strong earnings growth history and impressive earnings prospects are the primary concepts that GARP investors borrow from the growth investing strategy. However, instead of super-normal rates, pursuing stocks with a more stable and reasonable growth rate is a tactic of GARP investors. The GARP strategy considers growth rates between 10% and 20% ideal.
Another metric considered by growth and GARP investors is return on equity (ROE). GARP investors look for strong and higher ROE than the industry average to identify superior stocks. Moreover, stocks with a positive cash flow find precedence under the GARP plan.
Value Metrics
GARP investing prioritizes one of the popular value metrics — the price-to-earnings (P/E) ratio. The investing style picks stocks with higher P/E ratios than value investors, but it avoids companies with extremely high P/E ratios. The price-to-book value (P/B) ratio is also taken into consideration.
Using the GARP principle, we have run a screen to identify stocks that should offer solid returns in the near term.
Screening Parameters
Along with the criteria discussed in the above section, we have considered a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Last five-year EPS & projected 3-5-year EPS growth rates between 10% and 25% (Strong EPS growth history and prospects ensure improving business.)
ROE (in the past 12 months) greater than the industry average (Higher ROE than the industry average indicates superior stocks.)
P/E and P/B ratios are less than the M-industry average (P/E and P/B ratios less than the industry indicate that the stocks are undervalued.)
Here are four out of the 11 stocks that made it through the screen. Each of the four stocks carries a Zacks Rank #2.
Ralph Lauren is benefiting from investor confidence in its robust brand equity, successful execution of its strategic transformation, and consistent performance across geographies and channels. RL’s strong pricing power, margin expansion, disciplined inventory and real estate management are key growth drivers for the long term.
Innovations like predictive buying and AI-enabled planning are improving inventory efficiency and responsiveness. Across platforms owned, wholesale and social, Ralph Lauren is not just keeping pace with digital trends but actively shaping them, creating immersive, emotionally resonant brand experiences that fuel both consumer loyalty and higher-margin sales.
Ralph Lauren is also making smart investments in prime real estate to future-proof its presence, such as acquiring its Polo flagship in SoHo and aligning with a broader DTC-led growth strategy that continues to strengthen profitability.
The stock has returned 24.9% in the year-to-date period. It has a trailing four-quarter earnings surprise of 8.49%, on average. The Zacks Consensus Estimate for RL’s fiscal 2026 earnings has moved 4.6% north to $14.63 per share over the past 30 days.
Stryker is poised for growth, driven by rising demand for robotic-assisted procedures, hospital capital expenditures and international expansion. Stryker is actively integrating new technologies such as AI-driven imaging and smart surgical systems to improve patient outcomes and maintain its competitive edge.
Stryker continues to evolve its Mako SmartRobotics platform with advanced features such as AI-driven 3D CT-based surgical planning and AccuStop haptic technology for highly precise implant placement. In late 2024, the company debuted Mako Spine and Shoulder in select markets and unveiled its fourth-generation Q Guidance modules — covering hip, knee, spine, and shoulder — at AAOS 2025. These strategic advancements position Stryker to extend its dominance in orthopedics into adjacent specialties through AI integration.
The stock has returned 4.6% in the year-to-date period. It has a trailing four-quarter earnings surprise of 3.3%, on average. The Zacks Consensus Estimate for SKT’s 2025 earnings has moved 1% north to $13.49 per share over the past 30 days.
Royal Gold has been benefiting from its solid streaming agreements. It is focused on allocating its strong cash flow to dividends, debt reduction and new businesses. Gold prices are currently at around $3,380 per ounce as U.S. tariff policies continue to drive safe-haven demand. Silver has also gained on the back of the recent expansion seen in the U.S. manufacturing sector. This rise in metal prices will likely boost the company’s results in the coming quarters.
RGLD is planning to acquire Sandstorm Gold in an all-stock deal, wherein it is offering 0.0625 Royal Gold shares for each Sandstorm share. RGLD has also inked a $196-million cash deal to buy Horizon Copper. Both transactions are expected to be completed in the fourth quarter of 2025. The addition of these assets from SAND and Horizon Copper will create a uniquely diversified global precious metals portfolio for Royal Gold with significant growth and exploration potential.
The stock has returned 29.4% in the year-to-date period. It has a trailing four-quarter earnings surprise of 16.5%, on average. The Zacks Consensus Estimate for RGLD’s 2025 earnings has moved 0.1% north to $7.48 per share over the past 30 days.
Autodesk develops model-based design, engineering and documentation software. The company serves customers in architecture, engineering and construction; product design and manufacturing; and digital media and entertainment industries.
Autodesk’s performance is gaining from new business growth, steady subscription renewal rates and strong competitive performance. Higher demand for its cloud-based products, mobile solutions and design suites is expected to drive the company’s revenues over the long haul. The rapid adoption of BIM 360 products and the success of the maintenance of the subscription program bode well for the growth of the company. Autodesk’s top-line growth is expected to remain strong, thanks to the demand for its AEC, AutoCAD and manufacturing product families.
The stock has declined 3.7% in the year-to-date period. It has a trailing four-quarter earnings surprise of 6.22%, on average. The Zacks Consensus Estimate for ADSK’s fiscal 2026 earnings has remained steady at $9.64 per share over the past 30 days.
You can get the remaining stocks on this list by signing up now for a 2-week free trial to the Research Wizard stock picking and backtesting software. You can also create your own strategies and test them first before making investments.
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.
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.