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4 High-Growth GARP Stocks with Attractive PEG Ratios for 2026
In the equity market, investors often seek strategies that can balance risk and reward, especially during periods of heightened volatility and economic uncertainty. While some investors favor deeply discounted value stocks and others pursue high-growth opportunities, a blended approach has increasingly proven effective in navigating changing market conditions.
This has led to the growing popularity of the GARP (growth at a reasonable price) strategy, which combines the core principles of value and growth investing. Rather than focusing solely on undervalued stocks or aggressive growth plays, GARP investors look for companies that offer sustainable earnings growth while still trading at attractive valuations. The approach aims to capture long-term upside potential without overpaying for momentum-driven stocks.
The success of this hybrid investing strategy has been evident in several outperforming stocks across sectors in recent years. Companies with strong fundamentals, resilient earnings growth and reasonable valuations have delivered substantial returns, highlighting the effectiveness of balancing value with growth characteristics. Here, we discuss four such stocks: DaVita, Integra LifeSciences, Braskem and LyondellBasell Industries.
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.
There are some drawbacks to using the PEG ratio, though. 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 four stocks that qualified for the screening:
DaVita: Headquartered in Denver, CO, DaVita is a leading provider of dialysis services in the United States to patients suffering from chronic kidney failure, also known as end-stage renal disease. Its U.S. dialysis segment remains the primary earnings driver, supported by steady reimbursement and cost control. Management also highlighted continued momentum within the Integrated Kidney Care during first-quarter 2026
DVA can be an impressive GARP investment pick with its Zacks Rank #1, a Value Score of B 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 20.2%.
Integra: Headquartered in Plainsboro, NJ, Integra LifeSciences Holdings Corporation is one of the world leaders in regenerative medicine. The company develops, manufactures and markets surgical implants and medical instruments. Integra is seeing steadier demand in Specialty Surgery, supported by its neurosurgery franchise and a broader ENT platform from Acclarent, while improving supply execution is helping conversion and capital equipment placements.
IART has a Zacks Rank #2, a Value Score of B and a Growth Style Score of B. Integra also has a five-year expected growth rate of 5.9%.
Braskem: Braskem manufactures and sells petrochemicals, thermoplastic resins and fuels in Brazil and international markets. Its portfolio includes polyethylene, polypropylene, PVC and basic chemicals, along with utilities, industrial services, electricity and natural gas supply.
BAK stock can 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, Braskem has an impressive long-term expected growth rate of 16.8%.
LyondellBasell: Based in Houston, TX, LyondellBasell is among the leading plastics, chemical and refining companies globally with operations across 18 countries. The company’s products are used across various industries, including electronics, automotive parts, packaging, construction materials and biofuels.
LYB can also be an impressive GARP investment pick with its Zacks Rank #1, a Value Score of B 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 49.4%.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks.com featured highlights include DaVita, Integra LifeSciences, Braskem and LyondellBasell
For Immediate Release
Chicago, IL – May 26, 2026 – Stocks in this week’s article are DaVita (DVA - Free Report) , Integra LifeSciences (IART - Free Report) , Braskem (BAK - Free Report) and LyondellBasell Industries (LYB - Free Report) .
4 High-Growth GARP Stocks with Attractive PEG Ratios for 2026
In the equity market, investors often seek strategies that can balance risk and reward, especially during periods of heightened volatility and economic uncertainty. While some investors favor deeply discounted value stocks and others pursue high-growth opportunities, a blended approach has increasingly proven effective in navigating changing market conditions.
This has led to the growing popularity of the GARP (growth at a reasonable price) strategy, which combines the core principles of value and growth investing. Rather than focusing solely on undervalued stocks or aggressive growth plays, GARP investors look for companies that offer sustainable earnings growth while still trading at attractive valuations. The approach aims to capture long-term upside potential without overpaying for momentum-driven stocks.
The success of this hybrid investing strategy has been evident in several outperforming stocks across sectors in recent years. Companies with strong fundamentals, resilient earnings growth and reasonable valuations have delivered substantial returns, highlighting the effectiveness of balancing value with growth characteristics. Here, we discuss four such stocks: DaVita, Integra LifeSciences, Braskem and LyondellBasell Industries.
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.
There are some drawbacks to using the PEG ratio, though. 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 four stocks that qualified for the screening:
DaVita: Headquartered in Denver, CO, DaVita is a leading provider of dialysis services in the United States to patients suffering from chronic kidney failure, also known as end-stage renal disease. Its U.S. dialysis segment remains the primary earnings driver, supported by steady reimbursement and cost control. Management also highlighted continued momentum within the Integrated Kidney Care during first-quarter 2026
DVA can be an impressive GARP investment pick with its Zacks Rank #1, a Value Score of B 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 20.2%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Integra: Headquartered in Plainsboro, NJ, Integra LifeSciences Holdings Corporation is one of the world leaders in regenerative medicine. The company develops, manufactures and markets surgical implants and medical instruments. Integra is seeing steadier demand in Specialty Surgery, supported by its neurosurgery franchise and a broader ENT platform from Acclarent, while improving supply execution is helping conversion and capital equipment placements.
IART has a Zacks Rank #2, a Value Score of B and a Growth Style Score of B. Integra also has a five-year expected growth rate of 5.9%.
Braskem: Braskem manufactures and sells petrochemicals, thermoplastic resins and fuels in Brazil and international markets. Its portfolio includes polyethylene, polypropylene, PVC and basic chemicals, along with utilities, industrial services, electricity and natural gas supply.
BAK stock can 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, Braskem has an impressive long-term expected growth rate of 16.8%.
LyondellBasell: Based in Houston, TX, LyondellBasell is among the leading plastics, chemical and refining companies globally with operations across 18 countries. The company’s products are used across various industries, including electronics, automotive parts, packaging, construction materials and biofuels.
LYB can also be an impressive GARP investment pick with its Zacks Rank #1, a Value Score of B 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 49.4%.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2925790/4-high-growth-garp-stocks-with-attractive-peg-ratios-for-2026
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.