3 GARP Stocks to Scoop up for Maximum Returns

Core Insights - The GARP (Growth at a Reasonable Price) strategy is effective for identifying stocks that are undervalued yet have strong growth potential, focusing on metrics like cash flow, revenues, and earnings per share (EPS) [1][2] GARP Metrics - GARP combines growth and value investing, targeting stocks with growth rates between 5% and 20%, and prioritizing return on equity (ROE) that exceeds the industry average [2] - GARP investors seek stocks with reasonable P/E ratios, avoiding those with excessively high ratios, while also considering the price-to-book (P/B) ratio [3] Screening Parameters - Stocks selected under the GARP strategy must have a Zacks Rank of 1 (Strong Buy) or 2 (Buy), with a history of strong EPS growth and projected growth rates between 5% and 20% [4] - The criteria also include a ROE greater than the industry average and P/E and P/B ratios below the industry average, indicating undervaluation [4] Company Highlights - ResMed (RMD) has seen a 26% increase year-to-date, with a trailing four-quarter earnings surprise of 2.8% and a fiscal 2024 earnings estimate of $7.59 per share, up 2% over the past 30 days [5][6] - Booz Allen Hamilton (BAH) has gained 18.8% year-to-date, with a trailing four-quarter earnings surprise of 12.7% and a fiscal 2024 earnings estimate of $5.39 per share, up 0.6% over the past 30 days [6] - Kontoor Brands (KTB) has increased by 9.4% year-to-date, with a trailing four-quarter earnings surprise of 13.02% and a fiscal 2024 earnings estimate of $4.73 per share, up 0.4% over the past 30 days [7]