4 Best GARP Picks for Your Portfolio Based on Discounted PEG

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In the equity market, investments need to be prudently hedged to overcome uncertainties and limit losses related to external shocks. A question that often arises is whether one should resort to a ...

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A question that often arises is whether one should resort to a ...</p>\n\n<a href=\"https://finance.yahoo.com/news/4-best-garp-picks-portfolio-123100249.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>4 Best GARP Picks for Your Portfolio Based on Discounted PEG</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n4 Best GARP Picks for Your Portfolio Based on Discounted PEG\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-01 20:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/4-best-garp-picks-portfolio-123100249.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>In the equity market, investments need to be prudently hedged to overcome uncertainties and limit losses related to external shocks. A question that often arises is whether one should resort to a ...</p>\n\n<a href=\"https://finance.yahoo.com/news/4-best-garp-picks-portfolio-123100249.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"KELYA","symbol_name":"凯利服务","start_time":0,"source_url":"https://finance.yahoo.com/news/4-best-garp-picks-portfolio-123100249.html","article_id":"2448488919","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/U45CrReyOBmRPBdkCWGGVw--~B/aD00MTM7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/742c2718f9ff3a297d02254acce5007b"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2448488919","pubTimestamp":1719837060,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"In the equity market, investments need to be prudently hedged to overcome uncertainties and limit losses related to external shocks. A question that often arises is whether one should resort to a value strategy that seeks discounted stocks or opt for growth investing in times of extreme market instability.The investing track of the Oracle of Omaha over the past few decades and his gradual shift from being a pure-play value investor to a GARP  investor might give us all the answers.Per the GARP theory, the strategic mingling of growth and value-investing principles gives us a hybrid strategy, offering an ideal investment by utilizing the best features of both. What GARPers look for is whether or not the stocks are somewhat undervalued and have solid sustainable growth potential .Several stocks, which have surged significantly in the recent past, show an overwhelming success of this hybrid investing strategy over pure-play value and growth investments. Here, we will discuss the success o","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"KELYA":"凯利服务","AFYA":"Afya Limited","KELYB":"凯利服务","IE00BGV7N243.SGD":"FSSA Global Emerging Markets Focus I Acc SGD","IE00BMG7P819.SGD":"Legg Mason ClearBridge - Global Infrastructure Income A Mdis SGD-H Plus","BK4204":"教育服务","IE00BMG7P926.USD":"Legg Mason ClearBridge - Global Infrastructure Income A Acc USD","GARP":"ISHARES MSCI USA QUALITY GARP ETF","NHYDY":"Norsk Hydro ASA","BK4585":"ETF&股票定投概念","PEG":"公务集团","BK4130":"人力资源与就业服务","IE00BMG7P694.USD":"Legg Mason ClearBridge - Global Infrastructure Income A Mdis USD Plus","IE00BD4GTW91.USD":"LEGG MASON CLEARBRIDGEINFRASTRUCTURE VALUE \"A\" (USDHDG) INC","BK4588":"碎股","IE00BD4GTV84.USD":"LEGG MASON CLEARBRIDGEINFRASTRUCTURE VALUE \"A\" (USDHDG) ACC","BK4208":"复合型公用事业","DESP":"Despegar.com Corp.","BK4153":"铝","IE00BMG7P587.USD":"LEGG MASON CLEARBRIDGE GLOBAL INFRASTRUCTURE INCOM \"A\" (USD) INC","BK4549":"软银资本持仓","BK4142":"酒店、度假村与豪华游轮","IE00BD4GTT62.SGD":"Legg Mason ClearBridge Infrastructure Value A SGD-H (mdis) plus"},"translate_title":"根据贴现PEG为您的投资组合提供4个最佳GARP选择","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"PEG":1,"NHYDY":1,"KELYA":1,"DESP":1,"GARP":1,"AFYA":1,"KELYB":0.9},"content_text":"In the equity market, investments need to be prudently hedged to overcome uncertainties and limit losses related to external shocks. A question that often arises is whether one should resort to a value strategy that seeks discounted stocks or opt for growth investing in times of extreme market instability.\nThe investing track of the Oracle of Omaha over the past few decades and his gradual shift from being a pure-play value investor to a GARP (growth at a reasonable price) investor might give us all the answers.\nPer the GARP theory, the strategic mingling of growth and value-investing principles gives us a hybrid strategy, offering an ideal investment by utilizing the best features of both. What GARPers look for is whether or not the stocks are somewhat undervalued and have solid sustainable growth potential (Investopedia).\nSeveral stocks, which have surged significantly in the recent past, show an overwhelming success of this hybrid investing strategy over pure-play value and growth investments. Here, we will discuss the success of four such stocks. These are Afya Limited AFYA, Despegar.com, Corp. DESP, Kelly Services KELYA and Norsk Hydro ASA NHYDY.\nA Few More Words on GARP\nGARP investing gives priority to one of the popular value metrics — the price/earnings growth (PEG) ratio. Although it is categorized under value investing, this strategy follows the principles of both growth and value investing.\nThe PEG ratio is defined as (Price/ Earnings)/Earnings Growth Rate\nIt relates the stocks’ P/E ratio with the future earnings growth rates.\nWhile P/E alone gives an idea of stocks that are trading at a discount, PEG, while adding the growth element to it, helps identify stocks with solid future potential.\nA lower PEG ratio, preferably less than 1, is always better for GARP investors.\nSay, for example, if a stock's P/E ratio is 10 and the expected long-term growth rate is 15%, the company's PEG will come down to 0.66, a ratio indicating both undervaluation and future growth potential.\nUnfortunately, this ratio is often neglected due to investors' limitations in calculating the future earnings growth rate of a stock.\nThere are some drawbacks to using the PEG ratio though. It does not consider the very common situation of changing growth rates, such as the forecast of the first three years at a very high growth rate, followed by a sustainable but lower growth rate over the long term.\nHence, PEG-based investing can be even more rewarding if some other relevant parameters are also taken into consideration.\nHere are the screening criteria for a winning strategy:\nPEG Ratio less than X Industry Median\nP/E Ratio (using F1) less than X Industry Median (For more accurate valuation purpose)\nZacks Rank of 1 (Strong Buy) or 2 (Buy) (Whether good market conditions or bad, stocks with a Zacks Rank #1 or #2 have a proven history of success.)\nMarket Capitalization greater than $750 Million (This helps us to focus on companies that have strong liquidity.)\nAverage 20 Day Volume greater than 50,000: A substantial trading volume ensures that the stock is easily tradable.\nPercentage Change F1 Earnings Estimate Revisions (4 Weeks) greater than 5%: Upward estimate revisions add to the optimism, suggesting further bullishness.\nValue Score of less than or equal to B: Our research shows that stocks with a Value Style Score of A or B, when combined with a Zacks Rank #1, 2 or 3 (Hold), offer the best upside potential. \nHere are the four stocks that qualified the screening:\nAfya: It is a medical education group and medical practice solutions provider in Brazil. It offers educational products and services, including medical schools, medical residency preparatory courses, graduate courses and other programs to lifelong medical learners enrolled across its distribution network, as well as to third-party medical schools. The company operates through three segments: Undergrad, Continuing Education and Medical Practice solutions.\nAfya can be an impressive value investment pick with its Zacks Rank #2 and a Value Score of A. Apart from a discounted PEG and P/E, the stock has an impressive long-term expected growth rate of 23.7%.\nYou can see the complete list of today’s Zacks #1 Rank stocks here.\nDespegar.com: This online travel company provides a range of travel and travel-related products to leisure and corporate travelers through its websites and mobile applications in Latin America and the United States. Despegar.com sells airline tickets, travel packages, hotel rooms, car rentals, bus and cruise tickets, travel insurance products, destination services and other travel-related products, which enable consumers to find, compare, plan and purchase travel products through its marketplace.\nDespegar.com stock can also be an impressive value investment pick with its Zacks Rank #2 and a Value Score of B. Apart from a discounted PEG and P/E, DESP has a solid long-term expected growth rate of 26.3%.\nKelly Services: Together with its subsidiaries, Kelly Services provides workforce solutions to various industries. It helps companies recruit and manage skilled workers and helps job seekers find great work. With a global network of suppliers and partners, Kelly Services connects more than 500,000 people with work every year.\nKelly Services stock can be an impressive investment with its Zacks Rank #1 and a Value Score of A. Apart from a discounted PEG and P/E, KELYA also has an impressive long-term expected growth rate of 13%.\nNorsk Hydro: The company engages in power production, bauxite extraction, alumina refining, aluminum smelting and recycling activities, and the provision of extruded solutions worldwide.It operates through Hydro Bauxite & Alumina, Hydro Aluminium Metal, Hydro Metal Markets, Hydro Extrusions and Hydro Energy segments.\nNorsk Hydro has an impressive growth rate of 52% for the next five years. The stock currently has a Value Score of A and carries a Zacks Rank #2.\nThe Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.\nClick here to sign up for a free trial to the Research Wizard today.\nDisclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. \nDisclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nKelly Services, Inc. (KELYA) : Free Stock Analysis Report\nNorsk Hydro ASA (NHYDY) : Free Stock Analysis Report\nDespegar.com Corp. (DESP) : Free Stock Analysis Report\nAfya Limited (AFYA) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.28.3","shortVersion":"4.28.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2448488919"}