Zacks.com Highlights Include: Gartner, CDW Corp, Landstar System and KLA Corp
For immediate release
Chicago, IL – November 15, 2021 – The stocks in this week’s article are Gartner, Inc. IT, CDW Corp. CDW, Landstar System, Inc. LSTR and KLA Corporation KLAC.
Add these 4 GARP stocks to your portfolio for maximum returns
If you are looking for a profitable equity portfolio that will offer the best of value and growth investments, try reasonably priced growth or the GARP strategy.
It helps an investor gain exposure to stocks that are undervalued and offer impressive growth prospects. Unlike a blended strategy, a portfolio that uses GARP investing should include stocks that offer the best value and growth investments.
GARP Metrics – Mix of Growth and Value Metrics
The GARP strategy aims to deliver an ideal investment using the best features of value and growth investing. Investors who take the GARP approach prefer to buy stocks that are priced below the market or any reasonable target determined by fundamental analysis. These stocks also have strong prospects in terms of cash flow, income, earnings per share (EPS) etc.
The history of strong earnings growth and impressive earnings prospects are the main concepts that GARP investors borrow from the growth investment strategy. However, instead of super-normal growth rates, looking for stocks with a more stable and reasonable growth rate is also a GARP investor tactic. Therefore, growth rates between 10% and 25% are considered ideal under the GARP strategy.
Another growth indicator considered by both growth investors and GARP investors is return on equity (ROE). GARP investors look for a strong ROE above the industry average to identify superior stocks. In addition, values with positive cash flow find priority in the GARP plan.
GARP investing prioritizes one of the popular measures of value – the price / earnings (P / E) ratio. While this style of investing selects stocks with higher P / E ratios over value investors, it avoids companies with extremely high P / E ratios. In addition, the price / book ratio (P / B) is also taken into account.
Using the GARP principle, we have performed a screen to identify stocks that should offer strong returns in the short term.
For the rest of this article on the screen of the week, please visit Zacks.com at: https://www.zacks.com/stock/news/1827419/add-these-4-garp-stocks-to-your-portfolio-for-maximum-returns?art_rec=quote-stock_overview-zacks_news-ID01-txt- 1827419
Disclosure: Officers, directors and / or employees of Zacks Investment Research may own or have sold securities short and / or hold long and / or short positions in options mentioned in this document. An affiliated investment advisory firm may own or have sold securities short and / or hold long and / or short positions in options mentioned in this document.
About the screen of the week
Zacks.com created the first and best filtering system on the web, earning it the “# 1 Stock Filtering Site” award by Money Magazine. But powerful screening tools are just the start. That’s why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Solid stocks that should make the news
Many are poorly publicized and fall under the radar of Wall Street. They are practically unknown to the general public. Yet the 220 “strong buys” in today’s Zacks rankings were generated by the stock picking system which more than doubled the market from 1988 to 2016. Its average gain was + 25% per year. See these high potential actions for free >>.
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Contact: Jim Giaquinto
Email: [email protected]
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5 actions in the process of doubling
Each was selected by a Zacks expert as the # 1 favorite stock to earn + 100% or more in 2021. Previous recommendations climbed + 143.0%, + 175.9%, + 498.3% and + 673.0%.
Most of the stock in this report is flying under Wall Street’s radar, which provides a great opportunity to get into the ground floor.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.