News

For Immediate Release

Chicago, IL – August 14, 2024 – Stocks in this week’s article are HCA Healthcare HCA, Hubbell HUBB, Popular BPOP and Lennox International LII.

4 GARP Stocks to Scoop Up for Maximum Returns

Growth at a reasonable price, or GARP, is an excellent strategy to earn quick investment profits. The GARP approach helps identify stocks priced below the market or any suitable target determined by a fundamental analysis.

The strategy helps investors gain exposure to stocks with impressive prospects and trading at a discount. GARP stocks have solid prospects in terms of cash flow, revenues, earnings per share (EPS) and other metrics.

A portfolio based on the GARP strategy comprises stocks that offer the best value and growth investment. HCA Healthcare, Hubbell, Popular and Lennox International are some GARP stocks that hold promise.

GARP Metrics — Mix of Growth & Value Metrics

The GARP strategy offers ideal investment options utilizing the best value and growth investing features. Investors adopting the GARP approach prefer stocks priced below the market or any reasonable target determined by fundamental analysis. The stocks have solid prospects based on cash flow, revenues, EPS, etc.

Growth Metrics

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

Another metric considered by growth and GARP investors is the return on equity (ROE). GARP investors look for strong and higher ROE than the industry average to identify superior stocks. Moreover, stocks with a positive cash flow find precedence under the GARP plan.

Value Metrics

GARP investing prioritizes one of the popular value metrics — the price-to-earnings (P/E) ratio. The investing style picks stocks with higher P/E ratios than value investors but it avoids companies with extremely high P/E ratios. The price-to-book value (P/B) ratio is also taken into consideration.

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

Here are four stocks that made it through the screen:

HCA Healthcare is the largest non-governmental operator of acute care hospitals in the United States. These hospitals provide outpatient services, such as outpatient surgery, laboratory, radiology, respiratory therapy, cardiology and physical therapy. HCA currently sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.

HCA Healthcare has gained 34.1% year to date. It delivered a trailing four-quarter earnings surprise of 8.24%, on average. The Zacks Consensus Estimate for HCA'a 2024 earnings has moved 4.4% north to $21.89 per share over the past 30 days.

Hubbell designs and manufactures electrical and electronic products, such as plugs, receptacles, connectors, data signal processing components, lighting fixtures, and high-voltage test and measurement equipment. The company currently carries a Zacks Rank #2.

Hubbel has gained 14.2% in the year-to-date period. It has a trailing four-quarter earnings surprise of 1.21% on average. The Zacks Consensus Estimate for HUBB's 2024 earnings has moved 0.4% north to $16.39 per share over the past 30 days.

Popular is a financial services company with operations in Puerto Rico, the United States and the Virgin Islands. It is recognized as the largest banking institution by both assets and deposits in Puerto Rico. The company currently carries a Zacks Rank #2.

Popular has gained 17.4% year to date. BPOP delivered a trailing four-quarter earnings surprise of 24.74%, on average. The Zacks Consensus Estimate for BPOP's 2024 earnings has moved 4.8% north to $8.76 per share over the past 30 days.

Lennox International is a leading global provider of climate control solutions. It designs, manufactures and markets a broad range of products for the heating, ventilation, air conditioning and refrigeration markets. The company currently carries a Zacks Rank #2.

Lennox International has gained 25.5% year to date. LII has a trailing four-quarter earnings surprise of 8.04%, on average. The Zacks Consensus Estimate for 2024 earnings has moved 1.5% north to $20.30 per share over the past 30 days.

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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2321523/4-garp-stocks-to-scoop-up-for-maximum-returns

Disclosure: 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.

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Popular, Inc. (BPOP) : Free Stock Analysis Report

Lennox International, Inc. (LII) : Free Stock Analysis Report

HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report

Hubbell Inc (HUBB) : Free Stock Analysis Report

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