4 PEG-Rated GARP Stocks That Offer Both Value and Growth

Core Insights - The article discusses the importance of a hybrid investment strategy, specifically GARP (Growth at a Reasonable Price), which combines elements of both value and growth investing to navigate market uncertainties [1][2][3] GARP Investment Strategy - GARP investing prioritizes the price/earnings growth (PEG) ratio, which relates a stock's P/E ratio to its future earnings growth rate [5][6] - A lower PEG ratio, ideally below 1, indicates both undervaluation and future growth potential [6] - The article highlights that while P/E ratios can indicate discounts, the PEG ratio adds a growth perspective, making it a more comprehensive metric for investors [6][7] Screening Criteria for GARP Investments - Successful GARP investments should meet several criteria, including: - PEG Ratio less than the industry median - P/E Ratio (using F1) less than the industry median - Zacks Rank of 1 (Strong Buy) or 2 (Buy) - Market Capitalization greater than $1 billion - Average 20-Day Volume greater than 50,000 - Percentage Change F1 Earnings Estimate Revisions greater than 5% - Value Score of less than or equal to B [8][9][10] Featured GARP Stocks - Halozyme Therapeutics (HALO): A biopharmaceutical company with a discounted PEG and an expected growth rate of 31% [11][12] - Phibro Animal Health (PAHC): A diversified animal health company with a discounted PEG and P/E, and a long-term growth rate of 15% [13][14] - Leidos (LDOS): A global science and technology leader with a discounted PEG and P/E, and a historical growth rate of 14.6% [15][16] - PDD Holdings Inc. (PDD): A multinational commerce group with a discounted PEG and P/E, and a long-term expected growth rate of 9.7% [17][18]