We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Four PEG-Driven GARP Winners for the Uncertainty of November 2025
Read MoreHide Full Article
Key Takeaways
The article spotlights four stocks that meet strict PEG-driven GARP screening criteria.
ALL is noted for discounted valuation metrics and an 18.9% long-term expected growth rate.
The list also includes SANM, PAHC and ENS, each showing solid growth scores and low PEG ratios.
In November 2025, U.S. equities are navigating uneven earnings revisions and shifting Fed expectations. At the same time, persistent geopolitical overhangs and rising domestic political risk, including a partial government shutdown that lasted through most of the month, have amplified market anxiety. Although the shutdown has ended, the broader market uproar remains. In this environment, neither pure value nor high-beta growth offers consistent protection, making hybrid analysis particularly compelling.
By blending disciplined valuation with verifiable, durable growth, a hybrid strategy like GARP (growth at a reasonable price) offers a pragmatic framework for hedging uncertainty while still capturing upside during periods of cyclical or thematic rotation.
Per the GARP theory, the strategic mingling of growth and value-investing principles gives us a hybrid strategy, offering an ideal investment by utilizing the best features of both. What GARPers look for is whether or not the stocks are somewhat undervalued and have solid, sustainable growth potential (Investopedia).
Several stocks that have surged significantly in recent years have demonstrated the overwhelming success of this hybrid investing strategy over pure-play value and growth investments. Here, we will discuss the success of four such stocks. These are The Allstate Corp. (ALL - Free Report) , Sanmina Corporation (SANM - Free Report) , Phibro Animal Health (PAHC - Free Report) and EnerSys (ENS - Free Report) .
A Few More Words on GARP
GARP investing gives priority to one of the popular value metrics, the price/earnings growth (PEG) ratio. Although it is categorized under value investing, this strategy follows the principles of both growth and value investing.
The PEG ratio is defined as (Price/Earnings)/Earnings Growth Rate.
It relates the stocks’ P/E ratios to the future earnings growth rates.
While P/E alone gives an idea of stocks that are trading at a discount, PEG, while adding the growth element to it, helps identify stocks with solid future potential.
A lower PEG ratio, preferably less than 1, is always better for GARP investors.
Say, for example, if a stock's P/E ratio is 10 and the expected long-term growth rate is 15%, the company's PEG will come down to 0.66, a ratio indicating both undervaluation and future growth potential.
Unfortunately, this ratio is often neglected due to investors' limitations in calculating the future earnings growth rate of a stock.
However, there are some drawbacks to using the PEG ratio. It does not consider the very common situation of changing growth rates, such as the forecast of the first three years at a very high growth rate, followed by a sustainable but lower growth rate over the long term.
Hence, PEG-based investing can be even more rewarding if some other relevant parameters are also taken into consideration.
Here are the screening criteria for a winning strategy:
PEG Ratio less than X Industry Median
P/E Ratio (using F1) less than X Industry Median (For more accurate valuation purposes)
Zacks Rank of 1 (Strong Buy) or 2 (Buy) (Whether good market conditions or bad, stocks with a Zacks Rank #1 or #2 have a proven history of success.)
Market Capitalization greater than $1 Billion (This helps us to focus on companies that have strong liquidity.)
Average 20-Day Volume greater than 50,000: A substantial trading volume ensures that the stock is easily tradable.
Percentage Change F1 Earnings Estimate Revisions (4 Weeks) greater than 5%: Upward estimate revisions add to the optimism, suggesting further bullishness.
Value Score of less than or equal to B: Our research shows that stocks with a Value Style Score of A or B, when combined with a Zacks Rank #1, 2 or 3 (Hold), offer the best upside potential.
Our PEG-Driven Picks
Here are four stocks that qualified the screening:
Allstate: Headquartered in Northbrook, IL, Allstate is the third-largest property-casualty (P&C) insurer and the largest publicly-held personal lines carrier in the United States. The company also provides a range of life insurance and investment products to its diverse customer base. It provides insurance products to approximately 16 million households through more than 12,000 exclusive agencies and financial specialists in the United States and Canada.
Allstate can be an impressive GARP investment pick with its Zacks Rank #1, Value Score of A and a Growth score of B. Apart from a discounted PEG and P/E, the stock has an impressive long-term expected growth rate of 18.9%.
Sanmina: Headquartered in San Jose, CA, Sanmina is a global provider of electronics contract manufacturing services. It focuses on engineering and fabricating complex components and also on providing complete end-to-end supply chain solutions to Original Equipment Manufacturers across various end markets, including industrial, medical, defense and aerospace, automotive, communications and cloud infrastructure.
SANM stock can also be an impressive GARP investment pick with its Zacks Rank #1, a Value Score of B and a Growth score of A. Apart from a discounted PEG and P/E, Sanmina has a solid long-term expected growth rate of 25.2%.
Phibro: Headquartered in New Jersey, Phibro is a leading global diversified animal health and mineral nutrition company. The company provides a broad range of products for food animals, including poultry, swine, beef and dairy cattle and aquaculture. Phibro also manufactures and markets specific ingredients for use in the personal care, automotive, industrial chemical and chemical catalyst industries.
PAHC stock can be an impressive GARP investment pick with its Zacks Rank #1 and a Value Score of B and Growth Score of A. Apart from a discounted PEG and P/E, Phibro also has an impressive long-term expected growth rate of 12.8%.
EnerSys: Headquartered in Pennsylvania, EnerSys engages in the manufacturing, marketing and distribution of various industrial batteries. Additionally, the company develops battery chargers and accessories, power equipment and outdoor cabinet enclosures. Apart from this, it provides support services for clients.
EnerSys can also be an impressive GARP investment pick with its Zacks Rank #2, a Value Score of A and a Growth Score of B. Apart from a discounted PEG and P/E, the stock also has a solid long-term historical growth rate of 16.5%.
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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Four PEG-Driven GARP Winners for the Uncertainty of November 2025
Key Takeaways
In November 2025, U.S. equities are navigating uneven earnings revisions and shifting Fed expectations. At the same time, persistent geopolitical overhangs and rising domestic political risk, including a partial government shutdown that lasted through most of the month, have amplified market anxiety. Although the shutdown has ended, the broader market uproar remains. In this environment, neither pure value nor high-beta growth offers consistent protection, making hybrid analysis particularly compelling.
By blending disciplined valuation with verifiable, durable growth, a hybrid strategy like GARP (growth at a reasonable price) offers a pragmatic framework for hedging uncertainty while still capturing upside during periods of cyclical or thematic rotation.
Per the GARP theory, the strategic mingling of growth and value-investing principles gives us a hybrid strategy, offering an ideal investment by utilizing the best features of both. What GARPers look for is whether or not the stocks are somewhat undervalued and have solid, sustainable growth potential (Investopedia).
Several stocks that have surged significantly in recent years have demonstrated the overwhelming success of this hybrid investing strategy over pure-play value and growth investments. Here, we will discuss the success of four such stocks. These are The Allstate Corp. (ALL - Free Report) , Sanmina Corporation (SANM - Free Report) , Phibro Animal Health (PAHC - Free Report) and EnerSys (ENS - Free Report) .
A Few More Words on GARP
GARP investing gives priority to one of the popular value metrics, the price/earnings growth (PEG) ratio. Although it is categorized under value investing, this strategy follows the principles of both growth and value investing.
The PEG ratio is defined as (Price/Earnings)/Earnings Growth Rate.
It relates the stocks’ P/E ratios to the future earnings growth rates.
While P/E alone gives an idea of stocks that are trading at a discount, PEG, while adding the growth element to it, helps identify stocks with solid future potential.
A lower PEG ratio, preferably less than 1, is always better for GARP investors.
Say, for example, if a stock's P/E ratio is 10 and the expected long-term growth rate is 15%, the company's PEG will come down to 0.66, a ratio indicating both undervaluation and future growth potential.
Unfortunately, this ratio is often neglected due to investors' limitations in calculating the future earnings growth rate of a stock.
However, there are some drawbacks to using the PEG ratio. It does not consider the very common situation of changing growth rates, such as the forecast of the first three years at a very high growth rate, followed by a sustainable but lower growth rate over the long term.
Hence, PEG-based investing can be even more rewarding if some other relevant parameters are also taken into consideration.
Here are the screening criteria for a winning strategy:
PEG Ratio less than X Industry Median
P/E Ratio (using F1) less than X Industry Median (For more accurate valuation purposes)
Zacks Rank of 1 (Strong Buy) or 2 (Buy) (Whether good market conditions or bad, stocks with a Zacks Rank #1 or #2 have a proven history of success.)
Market Capitalization greater than $1 Billion (This helps us to focus on companies that have strong liquidity.)
Average 20-Day Volume greater than 50,000: A substantial trading volume ensures that the stock is easily tradable.
Percentage Change F1 Earnings Estimate Revisions (4 Weeks) greater than 5%: Upward estimate revisions add to the optimism, suggesting further bullishness.
Value Score of less than or equal to B: Our research shows that stocks with a Value Style Score of A or B, when combined with a Zacks Rank #1, 2 or 3 (Hold), offer the best upside potential.
Our PEG-Driven Picks
Here are four stocks that qualified the screening:
Allstate: Headquartered in Northbrook, IL, Allstate is the third-largest property-casualty (P&C) insurer and the largest publicly-held personal lines carrier in the United States. The company also provides a range of life insurance and investment products to its diverse customer base. It provides insurance products to approximately 16 million households through more than 12,000 exclusive agencies and financial specialists in the United States and Canada.
Allstate can be an impressive GARP investment pick with its Zacks Rank #1, Value Score of A and a Growth score of B. Apart from a discounted PEG and P/E, the stock has an impressive long-term expected growth rate of 18.9%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Sanmina: Headquartered in San Jose, CA, Sanmina is a global provider of electronics contract manufacturing services. It focuses on engineering and fabricating complex components and also on providing complete end-to-end supply chain solutions to Original Equipment Manufacturers across various end markets, including industrial, medical, defense and aerospace, automotive, communications and cloud infrastructure.
SANM stock can also be an impressive GARP investment pick with its Zacks Rank #1, a Value Score of B and a Growth score of A. Apart from a discounted PEG and P/E, Sanmina has a solid long-term expected growth rate of 25.2%.
Phibro: Headquartered in New Jersey, Phibro is a leading global diversified animal health and mineral nutrition company. The company provides a broad range of products for food animals, including poultry, swine, beef and dairy cattle and aquaculture. Phibro also manufactures and markets specific ingredients for use in the personal care, automotive, industrial chemical and chemical catalyst industries.
PAHC stock can be an impressive GARP investment pick with its Zacks Rank #1 and a Value Score of B and Growth Score of A. Apart from a discounted PEG and P/E, Phibro also has an impressive long-term expected growth rate of 12.8%.
EnerSys: Headquartered in Pennsylvania, EnerSys engages in the manufacturing, marketing and distribution of various industrial batteries. Additionally, the company develops battery chargers and accessories, power equipment and outdoor cabinet enclosures. Apart from this, it provides support services for clients.
EnerSys can also be an impressive GARP investment pick with its Zacks Rank #2, a Value Score of A and a Growth Score of B. Apart from a discounted PEG and P/E, the stock also has a solid long-term historical growth rate of 16.5%.
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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report