5 PEG-Based GARP Stocks to Buy Amid Election Week Volatility

Zacks11-06 22:59

Just as the presidential election results are unfolding, investors are certain about one particular thing — a probable increase in volatility in the equity space in the course of the week. At the time...

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At the time...</p>\n\n<a href=\"https://finance.yahoo.com/news/5-peg-based-garp-stocks-145900385.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":"BK4554","symbol_name":"元宇宙及AR概念","start_time":0,"source_url":"https://finance.yahoo.com/news/5-peg-based-garp-stocks-145900385.html","article_id":"2481987072","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/y5TzmBu._qjnoh6epibnpw--~B/aD00MTM7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/1ead67f84e2ab1bfbbddb39ffee0b50f"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481987072","pubTimestamp":1730905140,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Just as the presidential election results are unfolding, investors are certain about one particular thing — a probable increase in volatility in the equity space in the course of the week. At the time of publishing this article, Trump’s return to the White House has been confirmed although not officially declared yet.Be that as it may, considering the diverse focus and agenda of the parties, conditional to the final/official voting outcome, a number of sectors are bound to see growth compared to others. While there is still time for investors to clearly understand which sectors to put more money in and which sectors to exit, it will be a prudent idea now to follow a hybrid investment strategy to minimize the risk of this external volatility.Here, to find an answer, we resort to the investing track of the Oracle of Omaha, where he has shown a gradual shift from being a pure-play value investor to a GARP  investor.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4554":"元宇宙及AR概念","IE00BMG7P819.SGD":"Legg Mason ClearBridge - Global Infrastructure Income A Mdis SGD-H Plus","LU0821914370.USD":"贝莱德亚洲成长领袖A2","LU1066053197.SGD":"HSBC GIF GLOBAL EQUITY VOLATILITY FOCUSED \"AM3\" (SGDHDG) INC","EAT":"布林克国际","BK4585":"ETF&股票定投概念","LU1152091168.USD":"UBS (LUX) EQUITY FUND - CHINA OPPORTUNITY (USD) \"PM\" INC","IE000M9KFDE8.USD":"NEUBERGER BERMAN US LARGE CAP VALUE \"A\" (USD) ACC","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4007":"制药","LU0225284248.USD":"SCHRODER ISF GLOBAL EQUITY YIELD \"A\" ACC","BK4220":"综合零售","SG9999001176.USD":"United Global Healthcare Acc USD","BABA":"阿里巴巴","BK4527":"明星科技股","IE00BLSP4239.USD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis USD Plus","LU0348816934.USD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AT\" (USD)","BK4568":"美国抗疫概念","IE00BD4GTW91.USD":"LEGG MASON CLEARBRIDGEINFRASTRUCTURE VALUE \"A\" (USDHDG) INC","HBBD.SI":"Alibaba HK SDR 5to1","SG9999001176.SGD":"UOB UNITED GLOBAL HEALTHCARE \"SGD\" (ACC)","SG9999013999.USD":"UOB UNITED GLOBAL HEALTHCARE FUND (USDHDG) INC","LU1515016050.SGD":"Blackrock Emerging Markets Equity Income A6 SGD-H","BK4503":"景林资产持仓","IE00BLSP4452.SGD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis SGD-H Plus","LDOS":"Leidos Holdings Inc","LU0052756011.USD":"TEMPLETON GLOBAL BALANCED \"A\" (USD) INC","GARP":"ISHARES MSCI USA QUALITY GARP ETF","LU1023059063.AUD":"BGF WORLD HEALTHSCIENCE \"A2\" (AUDHDG) ACC","LU0566484027.USD":"安本美国小盘成长股","VIRT":"Virtu Financial, Inc.","BK4504":"桥水持仓","LU0289739699.SGD":"AB INTERNATIONAL HEALTH CARE PORTFOLIO \"A\" (SGD) ACC","LU1559883803.SGD":"Aberdeen Standard SICAV I - North American Smaller Companies Fund A Acc SGD-H","LU1057294990.SGD":"Blackrock World Healthscience A2 SGD-H","BK4209":"餐馆","09988":"阿里巴巴-W","LU0321505868.SGD":"Schroder ISF Global Dividend Maximiser A Dis SGD","BK4548":"巴美列捷福持仓","LU0321505439.SGD":"Schroder ISF Global Dividend Maximiser A Acc SGD","PEG":"公务集团","SG9999002232.USD":"Allianz Global High Payout USD","LU0985481810.HKD":"SCHRODER ISF GLOBAL EQUITY YIELD \"A\" (HKD) INC M","BK4127":"投资银行业与经纪业","PFE":"辉瑞","LU1105468828.SGD":"Allianz Total Return Asian Equity AM DIS H2-SGD","SG9999002224.SGD":"Allianz Global High Payout SGD","LU0306806265.USD":"SCHRODER ISF GLOBAL DIVIDEND MAXIMISER \"A\" ACC","LU0067412154.USD":"UBS (LUX) EQUITY FUND -  CHINA OPPORTUNITY \"P\" (USD) ACC","LU0310800965.SGD":"FTIF - Templeton Global Balanced A Acc SGD","IE00BD4GTT62.SGD":"Legg Mason ClearBridge Infrastructure Value A SGD-H (mdis) plus"},"translate_title":"在选举周波动中值得买入的5只基于PEG的GARP股票","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"VIRT":1,"PEG":1,"LDOS":1,"GARP":1,"EAT":1,"BABA":0.9,"PFE":0.9,"HBBD.SI":0.9,"09988":0.6},"content_text":"Just as the presidential election results are unfolding, investors are certain about one particular thing — a probable increase in volatility in the equity space in the course of the week. At the time of publishing this article, Trump’s return to the White House has been confirmed although not officially declared yet.\nBe that as it may, considering the diverse focus and agenda of the parties, conditional to the final/official voting outcome, a number of sectors are bound to see growth compared to others. While there is still time for investors to clearly understand which sectors to put more money in and which sectors to exit, it will be a prudent idea now to follow a hybrid investment strategy to minimize the risk of this external volatility.\nHere, to find an answer, we resort to the investing track of the Oracle of Omaha, where he has shown a gradual shift from being a pure-play value investor to a GARP (growth at a reasonable price) investor.\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 five such stocks. These are Alibaba Group BABA, Pfizer PFE, Virtu Financial VIRT, Leidos LDOS and Brinker International EAT.\nMore on GARP\nThe GARP theory enables strategic mingling of growth and value-investing principles, which gives us a hybrid strategy 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).\nPEG Ratio and 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 stocks’ P/E ratio with their future earnings growth rates.\nWhile P/E alone gives an idea of stocks trading at a discount, PEG, by adding the growth element, 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 $1 Billion (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.\nOur Picks\nHere are five out of the 14 stocks that qualified the screening:\nAlibaba: It is one of the leading e-commerce giants in China. Over the last few years, the company has transformed itself from being a traditional e-commerce company to a conglomerate that has businesses ranging from logistics and food delivery to cloud computing. Alibaba is benefiting from strong momentum in its international commerce retail business, driven by strength in AliExpress’ Choice.\nBABA can be an impressive value investment pick with its Zacks Rank #1 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 26.5%.\nYou can see the complete list of today’s Zacks #1 Rank stocks here.\nPfizer: The company has a wide range of drugs and vaccines. Pfizer’s Biopharma reporting segment includes three broad therapeutic areas, Primary Care, Specialty Care and Oncology. Pfizer’s non-COVID operational revenues are improving fast, driven by its key in-line products like Prevnar, Vyndaqel and Eliquis, new launches, and newly acquired products, including those from Seagen.\nPfizer stock can also be an impressive value investment pick with its Zacks Rank #2 and Value Score of A. Apart from a discounted PEG and P/E, PFE has a solid long-term expected growth rate of 10.7%.\nVirtu Financial: The company is a market-leading financial services firm that leverages cutting-edge technology to provide execution services and data, analytics and connectivity products to its clients and deliver liquidity to the global markets. Virtu Financial provides a wide array of offerings in execution, liquidity sourcing, analytics and broker-neutral, and multi-dealer platforms in workflow technology.\nVIRT has an impressive growth rate of 23.6% for the next five years. The stock currently has a Value Score of A and carries a Zacks Rank #1.\nLeidos: It is a global science and technology leader serving the defense, intelligence, civil and health markets. Its core capabilities include providing solutions in the fields of cybersecurity; data analytics; enterprise IT modernization and so on. Leidos’ defense solutions continue to witness increased contract wins from the Pentagon and other U.S. allies, which led to a solid backlog of $40.56 billion at the end of September 2024.\nLDOS stock can be an impressive value investment pick with its Zacks Rank #1 and a Value Score of B. Apart from a discounted PEG and P/E, Leidos also has an impressive long-term expected growth rate of 12.5%.\nBrinker: The company owns, operates, develops and franchises various restaurants under Chili’s Grill & Bar and Maggiano’s Little Italy brands.  Brinker remains steadfast in its goal to drive traffic and revenues through sales-building initiatives such as a streamlined menu and innovation, improved value proposition, better food presentation, advertising campaigns, kitchen system optimization and introduction of an enhanced service platform.\nBrinker can also be an impressive value investment pick with its Zacks Rank #1 and a Value Score of B. Apart from a discounted PEG and P/E, the stock also has a solid long-term expected growth rate of 16.4%.\nYou can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.\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\nPfizer Inc. (PFE) : Free Stock Analysis Report\nBrinker International, Inc. (EAT) : Free Stock Analysis Report\nLeidos Holdings, Inc. (LDOS) : Free Stock Analysis Report\nAlibaba Group Holding Limited (BABA) : Free Stock Analysis Report\nVirtu Financial, Inc. (VIRT) : 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":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"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":"4.29.1","shortVersion":"4.29.1","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/2481987072"}