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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%.
  • NVDA, RL, RMD and GE 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. NVIDIA (NVDA - Free Report) , Ralph Lauren (RL - Free Report) , ResMed (RMD - Free Report) and GE Aerospace (GE - 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 18 stocks that made it through the screen.

NVIDIA presents a compelling investment case for 2026, underpinned by multiple fundamental catalysts. The Blackwell platform continues generating strong revenue momentum, with year-over-year growth running at elevated levels. The next-generation Vera Rubin platform, now in full production, begins shipping in the second half of 2026, reinforcing NVIDIA's compute leadership. 

In February, NVIDIA secured a multi-year partnership with Meta to power new AI data centers, reflecting broad enterprise demand. At GTC 2026 in March, NVIDIA announced industrial AI collaborations with leading global manufacturers and expanded its autonomous vehicle ecosystem, with BYD, Geely, Hyundai and Nissan adopting its DRIVE Hyperion platform. Physical AI, agentic computing, and 6G infrastructure partnerships further broaden NVIDIA's revenue streams, supporting a durable and long-term growth thesis.

This Zacks Rank #1 stock has declined 10.5% in the past six-month period. It has a trailing four-quarter earnings surprise of 2.93%, on average. The Zacks Consensus Estimate for NVDA’s fiscal 2027 earnings has moved north by 3.5% to $7.96 per share over the past 60 days.

Ralph Lauren presents a compelling investment case for 2026, built on strong fundamentals and accelerating global momentum. The company’s third-quarter fiscal 2026 revenues were $2.4 billion, up 12%, with Asia surging 22% and China up over 30%. Adjusted EPS climbed 29% year over year while gross margin expanded 150 basis points to 69.9%, reflecting disciplined full-price selling. Average unit retail across the direct-to-consumer network rose 18%, underscoring brand elevation. The company added 2.1 million new DTC customers and raised fiscal 2026 guidance to high-single to low-double-digit constant currency revenue growth. In March 2026, its board declared a quarterly dividend of $0.9125 per share, underscoring 23 consecutive years of payouts and confidence in sustained cash generation.

This Zacks Rank #2 stock has returned 3.3% 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 $16.25 per share over the past 60 days.

ResMed presents a compelling investment case driven by sustained fundamental strength and strategic execution. In fiscal second-quarter 2026, the company delivered 11% revenue growth to $1.4 billion, 320 basis points of gross margin expansion to 61.8%, and operating cash flow of $340 million, underscoring robust demand across its sleep and respiratory care portfolio. The FDA-cleared Smart Comfort device, an AI-powered CPAP personalization tool launching broadly across the United States in 2026, is poised to meaningfully improve patient adherence and expand ResMed's digital health ecosystem. In February 2026, the company announced a Greenwood, IN distribution center to lift two-day North American transit coverage from 75% to 90%. A March 2026 global sleep survey further affirms vast, underserved demand for ResMed's growing portfolio.

This Zacks Rank #2 stock has declined 18.6% 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 1.1% to $10.98 per share over the past 60 days.

GE Aerospace entered 2026 with compelling fundamental momentum. The company delivered 2025 revenue growth of 21%, EPS expansion of 38%, and free cash flow conversion exceeding 100%, underpinned by a strong backlog of approximately $190 billion. In March 2026, it committed another $1 billion to U.S. manufacturing — its second consecutive such investment — to accelerate engine deliveries and bolster defense output, while also announcing a €110 million European manufacturing expansion alongside €40 million in MRO investments. An expanded AI-powered partnership with Palantir is transforming military aircraft readiness. A February 2026 U.S. Air Force contract for the next-generation GEK1500 engine further solidifies its defense pipeline. Broad-based investment across both commercial and defense segments positions GE Aerospace for durable, compounding growth.

This Zacks Rank #2 stock has lost 6% in the past six-month period. It has a trailing four-quarter earnings surprise of 14.27%, on average. The Zacks Consensus Estimate for GE’s 2026 earnings has moved north by 0.7% to $7.44 per share over the past 30 days.

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