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4 GARP Stocks That Investors Can Scoop Up for Maximum 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%.
RL, EAT, AMP and WFRD 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, you can 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 of value and growth investing. Ralph Lauren (RL - Free Report) , Brinker International (EAT - Free Report) , Ameriprise Financial (AMP - Free Report) and Weatherford International (WFRD - 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 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 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 four stocks from the eight that made it through the screening process. Each of the selected stocks given below carries a Zacks Rank #2.
Ralph Lauren's near-term investment case rests on strong forward guidance and disciplined capital allocation. For fiscal 2027, the company targets mid-single-digit constant currency revenue growth, with first-quarter operating margin expansion of 80-120 basis points, driven primarily by gross margin gains. A board-approved 10% dividend increase—raising the quarterly payout to $1.00 per share, to be paid out on July 10, 2026—reflects confidence in earnings durability. Structurally, continued AUR elevation through full-price selling, DTC channel momentum across all regions, and accelerating Asia expansion underpin the growth outlook. New category launches, including the Polo Blaze handbag collection in Fall '26, extend addressable market reach. With $1.4 billion in buyback capacity and $2.1 billion in cash and short-term investments, Ralph Lauren enters fiscal 2027 well-positioned.
The Zacks Consensus Estimate for RL’s fiscal 2027 earnings has moved north by 1.6% to $18.33 per share in the past 60 days. The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 9.14%.
Brinker International entered the final quarter of fiscal 2026 with a strengthening fundamental profile. In April 2026, the company raised its full-year EPS guidance (ex-special items) to $10.60–$10.85 and narrowed total revenue guidance between $5.78 billion and $5.82 billion, reflecting growing management conviction. Chili's comparable sales sustained momentum through February and March, each rising 5.9% with positive traffic, pointing to continued guest acquisition and brand strength. Operationally, the revolver was fully paid down and $108 million of stock was repurchased in the fiscal third quarter. In June 2026, Brinker announced early redemption of outstanding 8.25% Senior Notes due 2030, a move that will meaningfully reduce interest costs. Nine-month operating cash flows of $571.8 million support further capital deployment ahead of the Aug.12 fourth-quarter earnings call.
The Zacks Consensus Estimate for EAT’s fiscal 2026 earnings has moved north by 0.2% to $10.75 per share in the past 60 days. The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 6.83%.
Ameriprise Financial is well-positioned for near-term momentum, underpinned by several compelling forward-looking fundamental catalysts. The Huntington National Bank partnership — set to bring approximately 260 financial advisors and nearly $28 billion in combined client assets into Ameriprise's Financial Institutions Group — is actively transitioning, organically expanding the institutional channel. Sustained advisor recruitment from competitors, including recent additions from Edward Jones and Thrivent, continues to broaden the asset base. Management's April 2026 quarterly dividend increase of 6% to $1.70 per share signals confidence in robust capital generation capacity. The June 2026 BISA Technology Innovation Award — a third consecutive recognition — for the Signature Wealth UMA platform reinforces advisor productivity and retention. Trailing revenue per advisor hit a record $1.2 million, underscoring strong operating leverage ahead.
The consensus estimate for AMP’s 2026 earnings has moved north by 0.7% to $43.01 per share in the past 60 days. The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 5.05%.
Weatherford International is positioned for near-term re-rating, driven by converging strategic catalysts. The June 2026 definitive agreement to acquire NCS Multistage — immediately accretive to adjusted free cash flow per share, with at least $15 million in annual synergies within 18 months — strengthens completions capabilities and unconventional exposure. An ExxonMobil affiliate deepwater completions contract, awarded in May 2026, reinforces offshore momentum. Management has maintained full-year 2026 revenue guidance of $4.5–$4.95 billion, with increased confidence in a second-half ramp. The planned re-domestication to Texas, targeting third-quarter 2026, is designed to simplify governance, reduce compliance costs, and expand the shareholder and lender base. With net leverage at 0.41x and more than $1 billion in cash, Weatherford appears to be on a solid footing ahead of second-quarter 2026 results.
The consensus estimate for WFRD’s 2026 earnings has moved north by 2.7% to $6.13 per share in the past 60 days. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing once, the average surprise being 42.69%.
View the Zacks #1 Rank List
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4 GARP Stocks That Investors Can Scoop Up for Maximum Returns
Key Takeaways
If you are looking for a profitable portfolio of stocks offering the best of value and growth investing, you can 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 of value and growth investing. Ralph Lauren (RL - Free Report) , Brinker International (EAT - Free Report) , Ameriprise Financial (AMP - Free Report) and Weatherford International (WFRD - 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 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 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 four stocks from the eight that made it through the screening process. Each of the selected stocks given below carries a Zacks Rank #2.
Ralph Lauren's near-term investment case rests on strong forward guidance and disciplined capital allocation. For fiscal 2027, the company targets mid-single-digit constant currency revenue growth, with first-quarter operating margin expansion of 80-120 basis points, driven primarily by gross margin gains. A board-approved 10% dividend increase—raising the quarterly payout to $1.00 per share, to be paid out on July 10, 2026—reflects confidence in earnings durability. Structurally, continued AUR elevation through full-price selling, DTC channel momentum across all regions, and accelerating Asia expansion underpin the growth outlook. New category launches, including the Polo Blaze handbag collection in Fall '26, extend addressable market reach. With $1.4 billion in buyback capacity and $2.1 billion in cash and short-term investments, Ralph Lauren enters fiscal 2027 well-positioned.
The Zacks Consensus Estimate for RL’s fiscal 2027 earnings has moved north by 1.6% to $18.33 per share in the past 60 days. The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 9.14%.
Brinker International entered the final quarter of fiscal 2026 with a strengthening fundamental profile. In April 2026, the company raised its full-year EPS guidance (ex-special items) to $10.60–$10.85 and narrowed total revenue guidance between $5.78 billion and $5.82 billion, reflecting growing management conviction. Chili's comparable sales sustained momentum through February and March, each rising 5.9% with positive traffic, pointing to continued guest acquisition and brand strength. Operationally, the revolver was fully paid down and $108 million of stock was repurchased in the fiscal third quarter. In June 2026, Brinker announced early redemption of outstanding 8.25% Senior Notes due 2030, a move that will meaningfully reduce interest costs. Nine-month operating cash flows of $571.8 million support further capital deployment ahead of the Aug.12 fourth-quarter earnings call.
The Zacks Consensus Estimate for EAT’s fiscal 2026 earnings has moved north by 0.2% to $10.75 per share in the past 60 days. The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 6.83%.
Ameriprise Financial is well-positioned for near-term momentum, underpinned by several compelling forward-looking fundamental catalysts. The Huntington National Bank partnership — set to bring approximately 260 financial advisors and nearly $28 billion in combined client assets into Ameriprise's Financial Institutions Group — is actively transitioning, organically expanding the institutional channel. Sustained advisor recruitment from competitors, including recent additions from Edward Jones and Thrivent, continues to broaden the asset base. Management's April 2026 quarterly dividend increase of 6% to $1.70 per share signals confidence in robust capital generation capacity. The June 2026 BISA Technology Innovation Award — a third consecutive recognition — for the Signature Wealth UMA platform reinforces advisor productivity and retention. Trailing revenue per advisor hit a record $1.2 million, underscoring strong operating leverage ahead.
The consensus estimate for AMP’s 2026 earnings has moved north by 0.7% to $43.01 per share in the past 60 days. The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 5.05%.
Weatherford International is positioned for near-term re-rating, driven by converging strategic catalysts. The June 2026 definitive agreement to acquire NCS Multistage — immediately accretive to adjusted free cash flow per share, with at least $15 million in annual synergies within 18 months — strengthens completions capabilities and unconventional exposure. An ExxonMobil affiliate deepwater completions contract, awarded in May 2026, reinforces offshore momentum. Management has maintained full-year 2026 revenue guidance of $4.5–$4.95 billion, with increased confidence in a second-half ramp. The planned re-domestication to Texas, targeting third-quarter 2026, is designed to simplify governance, reduce compliance costs, and expand the shareholder and lender base. With net leverage at 0.41x and more than $1 billion in cash, Weatherford appears to be on a solid footing ahead of second-quarter 2026 results.
The consensus estimate for WFRD’s 2026 earnings has moved north by 2.7% to $6.13 per share in the past 60 days. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing once, the average surprise being 42.69%.