Zacks.com featured highlights Carlisle, Microsoft, W.W. Grainger and Adobe
For Immediate Release
Chicago, IL – March 20, 2024 – Stocks in this week’s article are Carlisle Companies CSL, Microsoft MSFT, W.W. Grainger GWW and Adobe ADBE.
Scoop Up These 4 GARP Stocks to Receive Handsome Returns
If you are looking for a profitable portfolio of stocks offering the best of value and growth investing, try the growth at a reasonable price or GARP strategy.
The strategy helps investors gain exposure to undervalued stocks with impressive prospects. Unlike a blend strategy, a portfolio that uses GARP investing is expected to include stocks that offer the best value and growth investing. Carlisle Companies, Microsoft, W.W. Grainger and Adobe are some GARP stocks that hold promise.
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 30% are considered ideal under the GARP strategy.
Another metric that growth and GARP investors consider is the 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 the 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.
Here are four of the six stocks that made it through the screen:
Carlisle is engaged in the designing, manufacturing and selling of a wide range of roofing and waterproofing products, engineered products and finishing equipment. CSL currently flaunts a Zacks Rank of 1. You can see the complete list of today's Zacks #1 Rank stocks here.
Carlisle has gained 68.1% year to date. It has a trailing four-quarter earnings surprise of 7.55%, on average. The Zacks Consensus Estimate for CSL's 2024 earnings has moved 2.3% north to $18.44 per share over the past 30 days.
Microsoft is a broad-based technology provider whose offerings comprise operating systems, cross-device productivity applications, server applications, business solution applications, desktop and server management tools, software development tools and video games. The company currently carries a Zacks Rank #2.
Microsoft has gained 54.5% over a year. It has a trailing four-quarter earnings surprise of 8.82%, on average. The Zacks Consensus Estimate for Microsoft’s fiscal 2024 earnings has moved 0.3% north to $11.63 per share in the past 30 days.
W.W. Grainger is a broad-line, business-to-business distributor of maintenance, repair and operating products and services primarily in North America, Japan and the U.K. The company currently carries a Zacks Rank #2.
W.W. Grainger has gained 49% over a year. It has a trailing four-quarter earnings surprise of 6.5%, on average. The Zacks Consensus Estimate for the company’s 2024 earnings has moved 0.03% north to $39.22 per share over the past 30 days.
Adobe is a diversified software company that offers a wide range of products and services through the Software-as-a-Service model, managed services model, and term subscription and pay-per-use models. ADBE currently carries a Zacks Rank #2.
Adobe has gained 41.6% over a year. It delivered a trailing four-quarter earnings surprise of 3.03%, on average. The Zacks Consensus Estimate for ADBE’s fiscal 2024 earnings has been unchanged at $17.89 per share over the past 30 days.
Get the remaining stocks on the list and start testing this and other ideas. 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/2242767/scoop-up-these-4-garp-stocks-to-receive-handsome-returns
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/performance for information about the performance numbers displayed in this press release.
Want 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
Microsoft Corporation (MSFT) : Free Stock Analysis Report
W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report
Adobe Inc. (ADBE) : Free Stock Analysis Report
Carlisle Companies Incorporated (CSL) : Free Stock Analysis Report
