14 Best GARP Stocks to Buy According to Analysts

Industry Overview - Innovation and rapid technological change, particularly driven by artificial intelligence (AI), are reshaping markets, leading to a shift in investor sentiment regarding growth and valuation [2] - AI is increasingly viewed as a source of profits and productivity gains, influencing stock performance narratives [2] - GARP (Growth at a Reasonable Price) companies are identified as those that offer steady earnings, reliable cash flow, and growth at reasonable valuations, potentially delivering strong long-term returns [3] Company Insights Global Payments Inc. (NYSE:GPN) - Analyst Ramsey El-Assal from Cantor Fitzgerald raised the price recommendation for Global Payments Inc. to $88 from $80, maintaining a Neutral rating [9] - The company reported Q4 results indicating 5% adjusted net revenue growth excluding dispositions, with an expected adjusted EPS of $13.80 to $14.00 and over 90% adjusted free cash flow conversion [9] - CEO Cameron Bready highlighted the completion of the Worldpay acquisition and divestiture of the Issuer Solutions business as a significant milestone in the company's strategic transformation [10] - In Q4, the company achieved 6% constant currency adjusted net revenue growth, with adjusted operating margins improving by 80 basis points and adjusted EPS increasing by 12% [11] - Global Payments generated over $1 billion in adjusted free cash flow conversion in 2025, allowing for a $2.5 billion share repurchase program [12] Centene Corporation (NYSE:CNC) - Truist raised its price recommendation for Centene Corporation to $49 from $47, maintaining a Buy rating, citing positive management meetings and margin opportunities [14] - CEO Sarah London reported an adjusted diluted loss per share of ($1.19) for Q4 2025, with full-year adjusted diluted EPS totaling $2.08, indicating a challenging year but slightly exceeding expectations [15] - Profitability in the Medicaid segment improved, and the company anticipates full-year 2026 adjusted EPS to exceed $3, representing over 40% year-over-year growth [17] - The forecast assumes stable Medicaid margins and reflects margin recovery in the Marketplace segment, along with progress in Medicare Advantage [17]