For Immediate Release
Chicago, IL – January 31, 2025 – Stocks in this week’s article are American Express AXP, Pool Corp. POOL, Raymond James Financial RJF and Cencora, Inc. COR.
4 GARP Stocks Investors Can 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. American Express, Pool Corp., Raymond James Financial andCencora, Inc. 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 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 the four stocks out of the six that made it through the screen, each carrying a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
American Express Company is a diversified financial services company, offering charge and credit payment card products, and travel-related services worldwide. Its growth initiatives, like launching new products, reaching new agreements and forging alliances, are boosting its revenues.
Consumer spending on travel and entertainment, which carries higher margins for AmEx, is advancing well. Its focus on millennials and Gen-Z consumers who exhibit strong dining preferences positions the company for long-term growth. Its solid cash-generation abilities enable the pursuit of business investments and share buybacks and dividend payments.
AmEx has gained 56.8% in the past year. It has a trailing four-quarter earnings surprise of 6.89%, on average. The Zacks Consensus Estimate for AXP's 2025 earnings has moved north by 1% to $15.33 per share over the past 30 days.
Pool Corp.is the world's largest wholesale distributor of swimming pool supplies, equipment and related products. In addition, the company is a leading regional wholesale distributor of irrigation and landscape products.
Increased focus on enhanced product offerings, improved customer service tools and a robust distribution network bode well for the company's near-term prospects. The company continues to focus on growing its franchise network and expanding support for independent retail dealers. POOL is optimistic regarding its technology investments and anticipates them to provide future sales and productivity gains. This and the focus on Pool360 technology rollouts and expanded digital marketing efforts bode well.
Pool has declined 7.2% in the past year. It has a trailing four-quarter earnings surprise of 1.4%, on average. The Zacks Consensus Estimate for POOL's 2025 earnings has remained steady at $11.91 per share over the past 30 days.
Raymond James Financial provides financial services mainly in the United States and Canada. Acquisitions, which enhance the company's product offerings, diversify revenues and expand its footprint, are expected to continue bolstering the top line. Our estimate for net revenues implies a CAGR of 6.3% by fiscal 2027. The company's solid liquidity position will likely keep its capital distribution activities sustainable.
The majority of Raymond James' businesses have been performing relatively well amid stiff competition. The revival of the investment banking (IB) business on the back of the robust pipeline and deal-making activity will support related fees. We project IB fees to rise 22% in fiscal 2025. Strategic acquisitions, which enhance its product offerings, diversify revenues and expand its footprint globally, are expected to bolster the top line.
Raymond James has gained 56.1% in the past year. It has a trailing four-quarter earnings surprise of 7.78%, on average. The Zacks Consensus Estimate for RJF's fiscal 2025 earnings has moved north by 0.9% to $11.02 per share over the past 30 days.
Cencora is one of the world's largest pharmaceutical service companies. It focuses on providing drug distribution and related services to reduce healthcare costs and improve patient outcomes. The company is well-positioned to deliver long-term sustainable growth on the back of its diverse and inclusive teams.
Cencora is an ideal partner for manufacturers looking to launch products. This is due to its extensive worldwide distribution network and global platform of commercialization services. Thanks to its growing presence in the pharmaceutical industry, Cencora can establish partnerships with pharmaceutical companies at an early stage of product development and market itself as an integrated partner capable of assisting in the successful commercialization of its products (in addition to providing logistics and distribution services). These factors are likely to have favored the stock's growth.
Cencora has gained 10% in the past year. It has a trailing four-quarter earnings surprise of 6.97%, on average. The Zacks Consensus Estimate for COR's fiscal 2025 earnings has moved north by 1.4% to $15.14 per share over the past 30 days.
Get the remaining stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back-testing software.
The 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.
Click here to sign up for a free trial of the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2406396/4-garp-stocks-that-investors-can-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.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Follow us on Twitter: https://www.twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpAmerican Express Company (AXP) : Free Stock Analysis Report
Pool Corporation (POOL) : Free Stock Analysis Report
Cencora, Inc. (COR) : Free Stock Analysis Report
Raymond James Financial, Inc. (RJF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
