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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, EAT, FTI and RMD 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) , Brinker International (EAT - Free Report) , TechnipFMC (FTI - Free Report) and ResMed (RMD - 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 take 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 26 stocks that made it through the screen, each carrying a Zacks Rank #1.
Ralph Lauren has started 2026 on a compelling footing, powered by its "Next Great Chapter: Drive" strategic plan that is delivering measurable results across geographies and consumer segments. In its third-quarter fiscal 2026 results announced on Feb. 5, 2026, the company reported revenue growth of 10% in constant currency to $2.4 billion, with Asia surging 22%, North America up 8%, and Europe advancing 4%. Adjusted gross margins expanded 140 basis points to 69.8%, underpinned by an 18% rise in average unit retail driven by disciplined full-price selling and reduced discounting.
The company added 2.1 million new direct-to-consumer customers and lifted its full-year revenue outlook to high-single to low-double-digit growth. The launch of "Ask Ralph," its proprietary AI-powered shopping assistant, signals a meaningful investment in digital engagement and long-term customer retention.
This stock has returned 27.6% in the past six-month period. It has a trailing four-quarter earnings surprise of 9.73%, on average. The Zacks Consensus Estimate for RL’s fiscal 2026 earnings has moved north by 5.4% to $16.26 per share over the past 30 days.
Brinker International's fiscal 2026 momentum signals a durable growth story. Following its January 2026 earnings release, the company raised its full-year revenue guidance to $5.76–$5.83 billion, underpinned by Chili's impressive 8.6% comparable sales growth in the second quarter — on top of a 31.4% gain from the prior year, achieving a two-year stack of +43%. With 19 consecutive quarters of same-store sales growth, the turnaround is proving sustainable.
Traffic gains, now entering their second consecutive year, reflect genuine guest acquisition rather than mere price inflation. Ongoing menu innovation, including a new chicken sandwich launching in April, strengthens Chili's competitive positioning. Disciplined cost management and aggressive share repurchases further reinforce shareholder value. Brinker's fundamental execution makes it a compelling hold heading into the back half of fiscal 2026.
This stock has lost 12.8% in the past six-month period. It has a trailing four-quarter earnings surprise of 8.21%, on average. The Zacks Consensus Estimate for EAT’s fiscal 2026 earnings has moved north by 2.9% to $10.66 per share over the past 30 days.
TechnipFMC’s fundamental tailwinds are firmly in place. The company's fourth-quarter 2025 results revealed full-year Subsea inbound orders of $10.1 billion, a record backlog of $16.6 billion, and total company inbound of $11.2 billion — underscoring robust demand for its proprietary iEPCI and Subsea 2.0 technologies. Management simultaneously raised 2026 Subsea revenue guidance to $9.2–$9.6 billion while upgrading adjusted EBITDA margin guidance to 21–22%, reflecting improving operational efficiency.
A Feb. 17 quarterly dividend declaration signals confident capital allocation. Having returned $1 billion to shareholders in 2025 through buybacks and dividends, TechnipFMC demonstrates disciplined financial stewardship. With a deepening backlog and expanding margins, the company is well-positioned to deliver sustained earnings growth through 2026.
This stock has surged 80.4% in the past six-month period. It has a trailing four-quarter earnings surprise of 15.9%, on average. The Zacks Consensus Estimate for FTI’s 2026 earnings has moved north by 1.5% to $2.78 per share over the past 30 days.
ResMed's investment case for 2026 rests on a powerful convergence of operating momentum and product innovation. The company delivered an impressive fiscal second quarter, with revenues climbing 11% to $1.4 billion, gross margin expanding 320 basis points to 61.8%, and operating income surging 18% — underscoring durable pricing power and operational discipline. On the innovation front, ResMed's FDA-cleared Smart Comfort — the first AI-enabled device to personalize CPAP therapy settings — is rolling out through 2026, directly targeting the adherence gap that has long limited the addressable market.
The February 2026 launch of the AirTouch F30i Comfort mask further strengthens its product portfolio. Together, these advances deepen ResMed's connected-care ecosystem across 140-plus countries, reinforcing competitive leadership in digital sleep and respiratory health while supporting sustained revenue and margin expansion ahead.
This stock has declined 11.8% in the past six-month period. It has a trailing four-quarter earnings surprise of 2.74%, on average. The Zacks Consensus Estimate for RMD’s fiscal 2026 earnings has moved north by 1% to $10.97 per share over the past 30 days.
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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) , Brinker International (EAT - Free Report) , TechnipFMC (FTI - Free Report) and ResMed (RMD - 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 take 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 26 stocks that made it through the screen, each carrying a Zacks Rank #1.
Ralph Lauren has started 2026 on a compelling footing, powered by its "Next Great Chapter: Drive" strategic plan that is delivering measurable results across geographies and consumer segments. In its third-quarter fiscal 2026 results announced on Feb. 5, 2026, the company reported revenue growth of 10% in constant currency to $2.4 billion, with Asia surging 22%, North America up 8%, and Europe advancing 4%. Adjusted gross margins expanded 140 basis points to 69.8%, underpinned by an 18% rise in average unit retail driven by disciplined full-price selling and reduced discounting.
The company added 2.1 million new direct-to-consumer customers and lifted its full-year revenue outlook to high-single to low-double-digit growth. The launch of "Ask Ralph," its proprietary AI-powered shopping assistant, signals a meaningful investment in digital engagement and long-term customer retention.
This stock has returned 27.6% in the past six-month period. It has a trailing four-quarter earnings surprise of 9.73%, on average. The Zacks Consensus Estimate for RL’s fiscal 2026 earnings has moved north by 5.4% to $16.26 per share over the past 30 days.
Brinker International's fiscal 2026 momentum signals a durable growth story. Following its January 2026 earnings release, the company raised its full-year revenue guidance to $5.76–$5.83 billion, underpinned by Chili's impressive 8.6% comparable sales growth in the second quarter — on top of a 31.4% gain from the prior year, achieving a two-year stack of +43%. With 19 consecutive quarters of same-store sales growth, the turnaround is proving sustainable.
Traffic gains, now entering their second consecutive year, reflect genuine guest acquisition rather than mere price inflation. Ongoing menu innovation, including a new chicken sandwich launching in April, strengthens Chili's competitive positioning. Disciplined cost management and aggressive share repurchases further reinforce shareholder value. Brinker's fundamental execution makes it a compelling hold heading into the back half of fiscal 2026.
This stock has lost 12.8% in the past six-month period. It has a trailing four-quarter earnings surprise of 8.21%, on average. The Zacks Consensus Estimate for EAT’s fiscal 2026 earnings has moved north by 2.9% to $10.66 per share over the past 30 days.
TechnipFMC’s fundamental tailwinds are firmly in place. The company's fourth-quarter 2025 results revealed full-year Subsea inbound orders of $10.1 billion, a record backlog of $16.6 billion, and total company inbound of $11.2 billion — underscoring robust demand for its proprietary iEPCI and Subsea 2.0 technologies. Management simultaneously raised 2026 Subsea revenue guidance to $9.2–$9.6 billion while upgrading adjusted EBITDA margin guidance to 21–22%, reflecting improving operational efficiency.
A Feb. 17 quarterly dividend declaration signals confident capital allocation. Having returned $1 billion to shareholders in 2025 through buybacks and dividends, TechnipFMC demonstrates disciplined financial stewardship. With a deepening backlog and expanding margins, the company is well-positioned to deliver sustained earnings growth through 2026.
This stock has surged 80.4% in the past six-month period. It has a trailing four-quarter earnings surprise of 15.9%, on average. The Zacks Consensus Estimate for FTI’s 2026 earnings has moved north by 1.5% to $2.78 per share over the past 30 days.
ResMed's investment case for 2026 rests on a powerful convergence of operating momentum and product innovation. The company delivered an impressive fiscal second quarter, with revenues climbing 11% to $1.4 billion, gross margin expanding 320 basis points to 61.8%, and operating income surging 18% — underscoring durable pricing power and operational discipline. On the innovation front, ResMed's FDA-cleared Smart Comfort — the first AI-enabled device to personalize CPAP therapy settings — is rolling out through 2026, directly targeting the adherence gap that has long limited the addressable market.
The February 2026 launch of the AirTouch F30i Comfort mask further strengthens its product portfolio. Together, these advances deepen ResMed's connected-care ecosystem across 140-plus countries, reinforcing competitive leadership in digital sleep and respiratory health while supporting sustained revenue and margin expansion ahead.
This stock has declined 11.8% in the past six-month period. It has a trailing four-quarter earnings surprise of 2.74%, on average. The Zacks Consensus Estimate for RMD’s fiscal 2026 earnings has moved north by 1% to $10.97 per share over the past 30 days.