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4 GARP Stocks Investors Can Scoop Up for Maximum Returns
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. Fortinet, Brinker International, Lincoln Electric and Lam Research 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.
Here are four stocks from the 12 that made it through the screening process.
Fortinet's investment case rests on a broadening product portfolio and accelerating strategic momentum. The company raised its full-year 2026 revenue growth guidance to 19%, with full-year billings guided between $9.35 billion and $9.55 billion. The July 2026 launch of the FortiGate 1200G with FortiSASE Outpost introduces a convergent SASE Firewall architecture, a newly defined market opportunity addressing hybrid deployment demands.
Concurrently, the expanded FortiEndpoint platform consolidates AI visibility, data security, and endpoint protection into a single agent and license, deepening wallet share per customer. In August 2026, Fortinet acquired Virtue AI to enhance its Security Fabric with agentic AI runtime protection, directly addressing the fast-growing AI security segment. Fortinet Federal's CMMC Level 2 certification opens the U.S. government market.
The Zacks Consensus Estimate for FTNT's 2026 earnings has moved north by 8.3% to $3.40 per share in the past 60 days. This Zacks Rank #1 company surpassed the Zacks Consensus Estimate in all four trailing quarters, the average surprise being 20.34%.
Brinker International enters fiscal 2027 with a clear growth runway, underpinned by company-issued guidance targeting revenues of $6.15 billion to $6.27 billion and adjusted EPS of $12.60 to $13.40. Chili's brand momentum visibly accelerated in July 2026, powered by the sustained success of the Big Crispy chicken sandwich.
On July 16, the company redeemed $350 million in 8.25% notes, lowering its interest expense profile. Its board then expanded the share repurchase authorization to $750 million in August, reflecting management's confidence in free cash flow generation. A 60-to-80 restaurant reimage plan, mid-single-digit same-store sales guidance, and expected positive traffic at Chili's further support the outlook. An Investor Day set for Sept. 17, 2026 could serve as an additional near-term catalyst.
The Zacks Consensus Estimate for EAT's fiscal 2027 earnings has moved north by 4.8% to $13.01 per share in the past 60 days. This Zacks Rank #2 company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 6.21%.
Lincoln Electric is well-positioned for near-term outperformance, driven by converging demand and strategic catalysts. The company's RISE framework targets revenues exceeding $6 billion by 2030, peak adjusted operating margins above 20%, and mid-teens EPS CAGR. For the second half of 2026, management anticipates continued margin improvement, with mid-20% incremental operating margins and a neutral price-cost environment.
Improved demand and capital spending across the Americas and Asia Pacific are broadening the growth base. The July 2026 declaration by the board of a 79 cents per share quarterly dividend reinforces steady shareholder returns, while the company's scheduled September 2026 investor engagements signal management's confidence in execution. With 71 manufacturing facilities across 20 countries and proprietary automation capabilities, Lincoln Electric's infrastructure supports durable earnings growth.
The consensus estimate for LECO's 2026 earnings has moved north by 3% to $11.16 per share in the past 60 days. This Zacks Rank #2 company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 3.92%.
AI-driven semiconductor demand is structurally reshaping Lam Research's near-term growth outlook. The company's guidance for the September 2026 quarter projects revenues of $8.10 billion and a non-GAAP operating margin of 39.5%, reflecting strong sequential momentum. Deferred revenues of $2.43 billion at June quarter-end signal a healthy forward demand pipeline supporting continued execution.
In August 2026, Lam Research announced plans to invest more than $3 billion over the next five years to expand its global R&D lab network, with experiment capacity targeted to grow by over 50%. Groundbreaking of a new 120,000-square-foot Oregon facility marks the investment's first concrete milestone. A 27% quarterly dividend hike to $0.33 per share further signals management's confidence in sustained cash generation and long-term shareholder returns.
The consensus estimate for LRCX's 2026 earnings has moved north by 18.7% to $9.33 per share in the past 30 days. This Zacks Rank #2 company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 7.12%.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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/performancefor information about the performance numbers displayed in this press release.
View the Zacks #1 Rank List
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Zacks.com featured highlights include Fortinet, Brinker International, Lincoln Electric and Lam Research
For Immediate Release
Chicago, IL – September 4, 2026 – Stocks in this week’s article are Fortinet (FTNT - Free Report) , Brinker International (EAT - Free Report) , Lincoln Electric (LECO - Free Report) and Lam Research (LRCX - Free Report) .
4 GARP Stocks Investors Can Scoop Up for Maximum Returns
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. Fortinet, Brinker International, Lincoln Electric and Lam Research 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.
Here are four stocks from the 12 that made it through the screening process.
Fortinet's investment case rests on a broadening product portfolio and accelerating strategic momentum. The company raised its full-year 2026 revenue growth guidance to 19%, with full-year billings guided between $9.35 billion and $9.55 billion. The July 2026 launch of the FortiGate 1200G with FortiSASE Outpost introduces a convergent SASE Firewall architecture, a newly defined market opportunity addressing hybrid deployment demands.
Concurrently, the expanded FortiEndpoint platform consolidates AI visibility, data security, and endpoint protection into a single agent and license, deepening wallet share per customer. In August 2026, Fortinet acquired Virtue AI to enhance its Security Fabric with agentic AI runtime protection, directly addressing the fast-growing AI security segment. Fortinet Federal's CMMC Level 2 certification opens the U.S. government market.
The Zacks Consensus Estimate for FTNT's 2026 earnings has moved north by 8.3% to $3.40 per share in the past 60 days. This Zacks Rank #1 company surpassed the Zacks Consensus Estimate in all four trailing quarters, the average surprise being 20.34%.
Brinker International enters fiscal 2027 with a clear growth runway, underpinned by company-issued guidance targeting revenues of $6.15 billion to $6.27 billion and adjusted EPS of $12.60 to $13.40. Chili's brand momentum visibly accelerated in July 2026, powered by the sustained success of the Big Crispy chicken sandwich.
On July 16, the company redeemed $350 million in 8.25% notes, lowering its interest expense profile. Its board then expanded the share repurchase authorization to $750 million in August, reflecting management's confidence in free cash flow generation. A 60-to-80 restaurant reimage plan, mid-single-digit same-store sales guidance, and expected positive traffic at Chili's further support the outlook. An Investor Day set for Sept. 17, 2026 could serve as an additional near-term catalyst.
The Zacks Consensus Estimate for EAT's fiscal 2027 earnings has moved north by 4.8% to $13.01 per share in the past 60 days. This Zacks Rank #2 company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 6.21%.
Lincoln Electric is well-positioned for near-term outperformance, driven by converging demand and strategic catalysts. The company's RISE framework targets revenues exceeding $6 billion by 2030, peak adjusted operating margins above 20%, and mid-teens EPS CAGR. For the second half of 2026, management anticipates continued margin improvement, with mid-20% incremental operating margins and a neutral price-cost environment.
Improved demand and capital spending across the Americas and Asia Pacific are broadening the growth base. The July 2026 declaration by the board of a 79 cents per share quarterly dividend reinforces steady shareholder returns, while the company's scheduled September 2026 investor engagements signal management's confidence in execution. With 71 manufacturing facilities across 20 countries and proprietary automation capabilities, Lincoln Electric's infrastructure supports durable earnings growth.
The consensus estimate for LECO's 2026 earnings has moved north by 3% to $11.16 per share in the past 60 days. This Zacks Rank #2 company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 3.92%.
AI-driven semiconductor demand is structurally reshaping Lam Research's near-term growth outlook. The company's guidance for the September 2026 quarter projects revenues of $8.10 billion and a non-GAAP operating margin of 39.5%, reflecting strong sequential momentum. Deferred revenues of $2.43 billion at June quarter-end signal a healthy forward demand pipeline supporting continued execution.
In August 2026, Lam Research announced plans to invest more than $3 billion over the next five years to expand its global R&D lab network, with experiment capacity targeted to grow by over 50%. Groundbreaking of a new 120,000-square-foot Oregon facility marks the investment's first concrete milestone. A 27% quarterly dividend hike to $0.33 per share further signals management's confidence in sustained cash generation and long-term shareholder returns.
The consensus estimate for LRCX's 2026 earnings has moved north by 18.7% to $9.33 per share in the past 30 days. This Zacks Rank #2 company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 7.12%.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2984488/4-garp-stocks-that-investors-can-scoop-up-for-maximum-returns
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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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.
Contact: Jim Giaquinto
Company: Zacks.com
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Email: pr@zacks.com
Visit: https://www.zacks.com/
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/performancefor information about the performance numbers displayed in this press release.