For immediate release
Chicago, IL – April 3, 2023 – Stocks in this week’s article are WW Grainger GWW, Ameriprise Financial AMP, Agile Technologies A and Bloomin Brands BLMN.
4 GARP and the gate returns to draw maximum
A reasonable price increase, or GARP, is the best strategy to earn a quick investment profit. The GARP approach helps to price stocks below the market or some suitable target determined by fundamental analysis.
The strategy helps investors get exposure to stocks with impressive prospects and trading at a discount. GARP stocks have solid prospects in terms of cash flow, revenue, earnings per share (EPS) and others.
Therefore, the portfolio, which is based on the GARP strategy, contains stocks that provide the best investment value and growth. WW Grainger, Ameriprise Financial, Agent Technologies and Bloomin’ Brands There are some GARP stocks holding promise.
GARP Metrics – Mix of Growth & Value Metrics
The GARP strategy seeks to offer the best investment by utilizing the best characteristics of value and growth investing. Investors adopting the GARP approach would prefer to buy stocks at a price below the market or any reasonable target determined by fundamental analysis. They have solid budgets for cash flow, revenue, EPS and more.
A strong growth history and high earnings expectations are the main ideas that attract GARP investors from a growth investing strategy. However, instead of super-normal growth, the stock has a more stable and reasonable growth following the GARP investment strategy. Growth rates between 10% and 20% are considered ideal under the GARP strategy.
Another growth metric considered by GARP investors is return on equity (ROE). GARP investors expect strong and higher ROE than the industry average to realize superior stocks. Furthermore, stocks with positive cash flow go ahead under the GARP plan.
GARP prioritizes investing in one of the most popular value metrics—the price-to-earnings (P/E) ratio. Although the investment style picks stocks with higher P/E ratios than value investors, it avoids companies with the highest P/E ratios. The price to book value (P/B) ratio is also considered.
Using the GARP principle, we ran a screen to identify stocks that should offer solid returns in the near term.
Here are four of the six trees that make up the screen;
WW Grainger A broad-line, business distributor of maintenance, repair and service products and services primarily in North America, Japan and the UK, the company currently sports a Zacks Rank #1. you can see the complete list of today’s Zacks #1 Rank stocks here.
WW Grainger has a four-quarter earnings surprise of 9.8% on average. The Zacks Consensus Estimate for WW Grainger’s 2023 earnings moved north 8.4% to $33.29 per share over 60 days.
Ameriprise Financial It is a diversified financial services company that offers a wide range of products and services in financial planning and design. The company helps individual and institutional clients to achieve their financial goals. AMP today has a Zacks Rank #2.
Ameriprise Financial has a trailing four-quarter payout surprise of 5.5% on average. The Zacks Consensus Estimate for 2023 earnings moved north 0.4% to $30.69 per share over 60 days.
Agent Technologies Original Equipment Manufacturer is a broad-based portfolio of test and measurement products serving many end markets. The company currently carries a Zacks Rank #2.
Agile’s four-quadrant earnings surprise is 7.03%, on average. The Zacks Consensus Estimate for fiscal 2023 earnings moved north by 0.7% to $5.68 per share in the 60 days.
Bloomin’ Brands The casual dining restaurant is a partnership with a portfolio of diverse restaurant concepts such as Outback Steakhouse, Carrabbas Italian Grill, Bonefish Grill, Fleming’s Prime Steakhouse and Roy’s Wine Bar. The company currently carries a Zacks Rank #2.
Bloomin’ Brands has a quarterly earnings surprise of 7.51%, on average. The Zacks Consensus Estimate for BLMN’s 2023 earnings has moved north of 9.7% to $2.93 per share over the past 60 days.
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Disclosure: Officers, directors and/or employees of Zacks Investments may have or have sold securities short and/or hold long and/or short positions in the options listed in this material. Federal investment advisory firms may own or sell securities short and/or hold long and/or short positions in the options listed in this material.
On the screen of the week
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Zacks Names “Single Best Pick to Double”
Out of thousands of stocks, 5 Zacks experts have each chosen their favorite to rock +100% or more in the coming months. Of these 5, Research Director Sheraz Mian hand reads one to have the most explosive excitement of all.
It’s a small known chemical company that’s up 65% over the year, still dirt cheap. With relentless demand for falling 2022 earnings estimates and $1.5 billion in earnings per share, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Put to Double such as Boston Beer Company which rose +143.0% in just over 9 months and NVIDIA rose which resonated +175.9% in one year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.