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Scoop Up These 4 GARP Stocks to Receive Handsome Returns
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Key Takeaways
The 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, PAHC, FTI and BURL represent promising GARP opportunities with strong fundamentals.
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. NVIDIA (NVDA - Free Report) , Phibro Animal Health (PAHC - Free Report) , TechnipFMC (FTI - Free Report) and Burlington Stores (BURL - Free Report) 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.
Last 5-year EPS & projected 3-5-year EPS growth rates between 10% and 25% (Strong EPS growth history and prospects ensure improving business.)
ROE (over the past 12 months) greater than the industry average (Higher ROE than the industry average indicates superior stocks.)
P/E and P/B ratios less than the M-industry average (P/E and P/B ratios less than that of the industry indicate that the stocks are undervalued.)
Here are the four stocks out of the 12 that made it through the screening process, each carrying a Zacks Rank 2:
NVIDIA has been displaying exceptional financial momentum and a pipeline spanning multiple high-growth frontiers. In fiscal 2026, the company posted revenues of $215.9 billion, up 65% year over year, with fourth-quarter revenues of $68.1 billion — a 73% annual gain. Non-GAAP gross margin was 75.2% in the fourth quarter. For first-quarter fiscal 2027, NVIDIA guided revenues of $78.0 billion. At GTC in March 2026, the company launched its next-generation Rubin platform, now in full production, with AWS, Google Cloud, Microsoft Azure, and OCI set for second-half 2026 deployments. In April 2026, NVIDIA released physical AI models for robotics and unveiled the world's first open-source quantum AI models, broadening its total addressable market. These compounding drivers position NVDA as a durable compounder.
The stock has gained 95.5% in the past year. It has a trailing four-quarter earnings surprise of 2.93%, on average. The Zacks Consensus Estimate for NVDA’s fiscal 2027 earnings has increased by 0.5% to $8.07 per share over the past 30 days.
Phibro Animal Health’s recent performance is backed by powerful momentum and disciplined execution. Fiscal second-quarter 2026 net sales were $373.9 million, up 21%, with adjusted EBITDA climbing 41% to $68.1 million and adjusted net income rising 60% to $35.7 million. Management raised fiscal 2026 guidance to net sales of $1.45–$1.50 billion and adjusted EBITDA of $245–$255 million. Integration of the Zoetis MFA portfolio fuels Animal Health growth, while vaccines expanded 13% on robust global demand. In April 2026, Phibro proactively navigated Brazil's new antimicrobial regulation by deploying its PhibroVet digital platform and pursuing therapeutic registrations in the final MAPA review. The quarterly dividend of 12 cents was paid on March 25, 2026, underscoring management's confidence in sustained cash generation.
The stock has surged 187.6% in the past year. It has a trailing four-quarter earnings surprise of 20.15%, on average. The Zacks Consensus Estimate for PAHC’s fiscal 2026 earnings has remained steady at $3.03 per share over the past 30 days.
TechnipFMC showcases powerful fundamentals, underpinning a strong growth trajectory. The company closed 2025 with a record $16.6 billion backlog, up 15% year over year, and a 24-month subsea opportunity list of approximately $29 billion. Full-year 2025 revenues rose 9% to $9.9 billion, while adjusted EBITDA surged 33% to $1.8 billion, reflecting strong operational leverage. Free cash flow of $1.4 billion enabled $1 billion in shareholder distributions. For 2026, TechnipFMC targets Subsea revenues of $9.2–$9.6 billion and adjusted EBITDA above $2.1 billion. The bp Tiber iEPCI award, valued between $600 million and $800 million, underscores FTI's deepwater leadership. The company's March 2026 ROV electrification initiative and participation at Piper Sandler's Energy Conference further highlight its technology-driven competitive advantage.
The stock has surged 162% in the past year. 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 0.3% to $2.92 per share over the past 30 days.
Burlington Stores presents a compelling investment case as 2026 fundamentals strengthen. The company reported fiscal 2025 net sales of $11.5 billion, up 9%, with net income rising 21% to $610 million. Adjusted EPS climbed 22% to $10.17, while adjusted EBIT margin expanded 80 basis points to 8.0%. Fourth-quarter 2025 comparable store inventories were up 12%, primed to aggressively chase sales. It projects fiscal-year 2026 total sales growth of 8%–10% and 110 net new store openings. April 2026 saw Burlington break ground on a distribution center in Buckeye, AZ, supplementing a planned Savannah facility, reinforcing supply chain capacity. With $2.2 billion in liquidity and $385 million remaining on its repurchase program, BURL is well-positioned for growth.
The stock has gained 41.2% in the past year. It has a trailing four-quarter earnings surprise of 13.78%, on average. The Zacks Consensus Estimate for BURL’s fiscal 2026 earnings has remained steady at $11.27 per share over the past 30 days.
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Scoop Up These 4 GARP Stocks to Receive Handsome Returns
Key Takeaways
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. NVIDIA (NVDA - Free Report) , Phibro Animal Health (PAHC - Free Report) , TechnipFMC (FTI - Free Report) and Burlington Stores (BURL - Free Report) 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.
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 5-year EPS & projected 3-5-year EPS growth rates between 10% and 25% (Strong EPS growth history and prospects ensure improving business.)
ROE (over the past 12 months) greater than the industry average (Higher ROE than the industry average indicates superior stocks.)
P/E and P/B ratios less than the M-industry average (P/E and P/B ratios less than that of the industry indicate that the stocks are undervalued.)
Here are the four stocks out of the 12 that made it through the screening process, each carrying a Zacks Rank 2:
NVIDIA has been displaying exceptional financial momentum and a pipeline spanning multiple high-growth frontiers. In fiscal 2026, the company posted revenues of $215.9 billion, up 65% year over year, with fourth-quarter revenues of $68.1 billion — a 73% annual gain. Non-GAAP gross margin was 75.2% in the fourth quarter. For first-quarter fiscal 2027, NVIDIA guided revenues of $78.0 billion. At GTC in March 2026, the company launched its next-generation Rubin platform, now in full production, with AWS, Google Cloud, Microsoft Azure, and OCI set for second-half 2026 deployments. In April 2026, NVIDIA released physical AI models for robotics and unveiled the world's first open-source quantum AI models, broadening its total addressable market. These compounding drivers position NVDA as a durable compounder.
The stock has gained 95.5% in the past year. It has a trailing four-quarter earnings surprise of 2.93%, on average. The Zacks Consensus Estimate for NVDA’s fiscal 2027 earnings has increased by 0.5% to $8.07 per share over the past 30 days.
Phibro Animal Health’s recent performance is backed by powerful momentum and disciplined execution. Fiscal second-quarter 2026 net sales were $373.9 million, up 21%, with adjusted EBITDA climbing 41% to $68.1 million and adjusted net income rising 60% to $35.7 million. Management raised fiscal 2026 guidance to net sales of $1.45–$1.50 billion and adjusted EBITDA of $245–$255 million. Integration of the Zoetis MFA portfolio fuels Animal Health growth, while vaccines expanded 13% on robust global demand. In April 2026, Phibro proactively navigated Brazil's new antimicrobial regulation by deploying its PhibroVet digital platform and pursuing therapeutic registrations in the final MAPA review. The quarterly dividend of 12 cents was paid on March 25, 2026, underscoring management's confidence in sustained cash generation.
The stock has surged 187.6% in the past year. It has a trailing four-quarter earnings surprise of 20.15%, on average. The Zacks Consensus Estimate for PAHC’s fiscal 2026 earnings has remained steady at $3.03 per share over the past 30 days.
TechnipFMC showcases powerful fundamentals, underpinning a strong growth trajectory. The company closed 2025 with a record $16.6 billion backlog, up 15% year over year, and a 24-month subsea opportunity list of approximately $29 billion. Full-year 2025 revenues rose 9% to $9.9 billion, while adjusted EBITDA surged 33% to $1.8 billion, reflecting strong operational leverage. Free cash flow of $1.4 billion enabled $1 billion in shareholder distributions. For 2026, TechnipFMC targets Subsea revenues of $9.2–$9.6 billion and adjusted EBITDA above $2.1 billion. The bp Tiber iEPCI award, valued between $600 million and $800 million, underscores FTI's deepwater leadership. The company's March 2026 ROV electrification initiative and participation at Piper Sandler's Energy Conference further highlight its technology-driven competitive advantage.
The stock has surged 162% in the past year. 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 0.3% to $2.92 per share over the past 30 days.
Burlington Stores presents a compelling investment case as 2026 fundamentals strengthen. The company reported fiscal 2025 net sales of $11.5 billion, up 9%, with net income rising 21% to $610 million. Adjusted EPS climbed 22% to $10.17, while adjusted EBIT margin expanded 80 basis points to 8.0%. Fourth-quarter 2025 comparable store inventories were up 12%, primed to aggressively chase sales. It projects fiscal-year 2026 total sales growth of 8%–10% and 110 net new store openings. April 2026 saw Burlington break ground on a distribution center in Buckeye, AZ, supplementing a planned Savannah facility, reinforcing supply chain capacity. With $2.2 billion in liquidity and $385 million remaining on its repurchase program, BURL is well-positioned for growth.
The stock has gained 41.2% in the past year. It has a trailing four-quarter earnings surprise of 13.78%, on average. The Zacks Consensus Estimate for BURL’s fiscal 2026 earnings has remained steady at $11.27 per share over the past 30 days.