Add These 4 GARP Stocks to Your Portfolio to Receive Handsome Returns

GARP Metrics: Mix of Growth & Value Metrics

The GARP strategy seeks to offer an ideal investment by utilizing the best features of value and growth investing. Investors adopting the GARP approach prefer buying stocks priced below the market or any reasonable target determined by fundamental analysis. These stocks also have solid prospects in terms of cash flow, revenues, earnings per share (EPS) and so on.

Growth Metrics

A strong earnings growth history and impressive earnings prospects are the main concepts that GARP investors borrow from the growth investing strategy. However, instead of super-normal growth rates, pursuing stocks with a more stable and reasonable growth rate is a tactic of GARP investors. Hence, growth rates between 10% and 20% are considered to be ideal under the GARP strategy.

Another metric that growth and GARP investors consider is return on equity (ROE). GARP investors look for a strong and higher ROE than the industry average to identify superior stocks. Stocks with positive cash flows find precedence under the GARP plan.

Value Metrics

GARP investing prioritizes popular value metrics, the price-to-earnings (P/E) and price-to-book (P/B) ratios. Though this investing style picks stocks with higher P/E ratios than value investors, it avoids companies with extremely high P/E ratios.

Using the GARP principle, we ran a screen to identify stocks that should offer solid returns in the near term.

Screening Parameters

Along with the criteria discussed in the above section, we have considered a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Last 5-year EPS & projected 3-5-year EPS growth rates between 10% and 25% (Strong EPS growth history and prospects ensure improving business.)

ROE (over the past 12 months) greater than the industry average (Higher ROE than the industry average indicates superior stocks.)

P/E and P/B ratios less than the M-industry average (P/E and P/B ratios less than that of the industry indicate that the stocks are undervalued)

Here are four stocks from the 11 that made it through the screening process. Each of these stocks carries a Zacks Rank #2.

Ralph Lauren's investment case remains compelling, anchored in strengthening fundamentals. Following first-quarter fiscal 2027 results, the company raised its full-year constant-currency revenue growth outlook to approximately 5-6% and lifted adjusted operating margin expansion guidance to 60-80 basis points. AUR growth of 15%, fueled by full-price selling and disciplined promotions, reinforces the brand's durable pricing power. Asia continues to lead geographically, delivering 25% constant-currency growth, with China surging over 40%. Global DTC comparable store sales rose low-double-digits, spanning both digital and brick-and-mortar channels. With $1.9 billion in liquidity, 22 new owned and partnered stores opened in the fiscal first quarter, and 1.5 million new consumers added to its DTC network, Ralph Lauren's structural growth trajectory appears well-supported heading into the fiscal second quarter.

The Zacks Consensus Estimate for RL’s fiscal 2027 earnings has moved 2.5% north to $18.79 per share in the past 30 days. RL surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 8.74%.

Ameriprise Financial is well-positioned for near-term growth, underpinned by a diversifying revenue base and an accelerating technology investment cycle. The firm's $1 billion annual AI and technology spend targets direct advisor workflow integration, already reflected in a record TTM revenue per advisor of $1.2 million. Record firm-wide assets reaching $1.8 trillion, propelled by 14% growth and strong wrap net inflows, support durable fee revenue expansion. The Asset Management segment is improving, with net outflows narrowing 26%, while Retirement and Protection Solutions posted 20% sales growth. Columbia Threadneedle's strong fund performance further aids client retention. Continuous advisor recruitment — including practices bringing $370 million and $470 million in assets — reinforces organic growth prospects for the second half of 2026.

The consensus estimate for the company’s 2026 earnings has moved 2.7% north to $46.12 per share in the past 30 days. AMP’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 5.56%.

Halozyme Therapeutics presents a compelling near-term opportunity underpinned by accelerating platform momentum. In July 2026, the company entered a collaboration with Incyte covering INCA033989, a first-in-class mutant calreticulin-targeted antibody for myeloproliferative neoplasms, with Incyte retaining options for two additional ENHANZE targets. YTD 2026, five collaborations have been signed — surpassing the full-year goal of three — spanning GSK, Vertex, Oruka, Incyte and an undisclosed partner representing the first-ever ENHANZE license for nucleic acid therapeutics. Raised full-year 2026 guidance calls for royalty revenues of $1.22–$1.245 billion and non-GAAP EPS of $8.65-$9. A $1 billion share repurchase program reflects balance sheet confidence. With argenx's VYVGART Hytrulo receiving an expanded FDA approval and Takeda's TAK-881 posting positive pivotal data, near-term royalty tailwinds appear meaningfully strengthened.

The consensus mark for this company’s 2026 earnings has moved north by 2.9% to $8.19 per share in the past 30 days. HALO surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing the same once, the average negative surprise being 19.12%.

NVIDIA is well-positioned for near-term appreciation, underpinned by high-conviction strategic moves. In August 2026, the company established compute financing platforms with six major financial institutions — Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR — aimed at mobilizing over $500 billion of third-party capital to fund AI infrastructure globally, broadening demand for NVIDIA hardware and software. NVIDIA also secured dedicated capacity at Ohio's PORTS-Pike Technology Campus, reinforcing its AI factory buildout. On the product front, July 2026 brought a long-term partnership with Safe Superintelligence Inc. and the commercial launch of Alpamayo 2 Super for autonomous vehicles. An expanded deal with SK Group on AI factories and next-generation memory, alongside NAVER's planned 200-megawatt AI factory expansion in Korea, signals durable international demand.

The consensus estimate for this company’s fiscal 2027 earnings has remained steady at $8.90 per share in the past 30 days. NVDA’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 5.52%.

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This article originally published on Zacks Investment Research (zacks.com).

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