4 PEG-Based GARP Stocks to Stay Ahead in Uncertain Markets

Market Overview - The equity market in 2025 has experienced heightened volatility due to escalating geopolitical tensions and renewed trade conflicts, particularly influenced by Trump's tariff policies which have prompted retaliatory actions from major economies like China and the European Union [1] - The Federal Reserve's decision to maintain interest rates has added to market instability, as many investors were expecting a rate cut to alleviate economic pressures from trade disruptions and geopolitical risks [1] Investment Strategies - In times of extreme market instability, investors face the dilemma of choosing between a value strategy that seeks discounted stocks or a growth investing approach [2] - The investment strategy of the Oracle of Omaha, which has evolved from pure value investing to a GARP (growth at a reasonable price) approach, serves as a potential guide for investors [2] GARP Investing - GARP investing combines growth and value-investing principles, focusing on stocks that are undervalued yet possess solid sustainable growth potential [4] - The PEG (Price/Earnings Growth) ratio is a key metric in GARP investing, relating a stock's P/E ratio to its future earnings growth rates [5] Stock Analysis - Four stocks exemplifying the success of the GARP strategy are Pilgrim's Pride (PPC), Exelixis (EXEL), Synchrony Financial (SYF), and United Airlines (UAL) [3] - Pilgrim's Pride has a Zacks Rank of 1 and a Value Score of A, with a long-term expected earnings growth rate of 48.2% [11][12] - Exelixis, with a Zacks Rank of 2 and a Value Score of B, has a solid long-term expected growth rate of 27.4% [13][14] - Synchrony Financial holds a Zacks Rank of 2 and a Value Score of A, with a projected earnings growth rate of 12.8% over the next five years [15] - United Airlines also has a Zacks Rank of 1 and a Value Score of A, with an impressive long-term expected earnings growth rate of 11.7% [16]