5 Top Discounted PEG-Based Stocks for GARP Investors

Core Insights - The article discusses the investment strategies during market instability, particularly the debate between value investing and growth investing, highlighting the GARP (growth at a reasonable price) approach as a hybrid strategy that combines both principles [1][2][3]. GARP Strategy - GARP investing prioritizes the price/earnings growth (PEG) ratio, which relates a stock's P/E ratio to its future earnings growth rate, aiming to identify undervalued stocks with solid growth potential [5][6]. - A lower PEG ratio, ideally below 1, indicates both undervaluation and future growth potential, making it attractive for GARP investors [6]. Stock Performance - Several stocks have demonstrated significant success using the GARP strategy compared to pure value or growth investments. The highlighted stocks include Pilgrim's Pride (PPC), H&R Block (HRB), Paramount Global (PARA), Norwegian Cruise Line (NCLH), and Tenet Healthcare (THC) [4][10][12][13][15][16]. Individual Stock Analysis - Pilgrim's Pride (PPC): Engaged in chicken product processing and distribution, it has a Zacks Rank of 1, a Value Score of A, and a long-term expected growth rate of 42.1% [9][10]. - H&R Block (HRB): A leading tax preparation service provider with a Zacks Rank of 1, a Value Score of B, and a historical growth rate of 15.5% [11][12]. - Paramount Global (PARA): A global media and entertainment provider with a Zacks Rank of 2, a Value Score of A, and a long-term expected growth rate of 11.6% [12][13]. - Norwegian Cruise Line (NCLH): A cruise line operator with a Zacks Rank of 1, a Value Score of A, and an impressive growth rate of 50.6% for the next five years [14][15]. - Tenet Healthcare (THC): A healthcare services company with a Zacks Rank of 1, a Value Score of A, and a historical growth rate of 30.8% [15][16].