(C) Reuters. 3 ‘Growth at a Reasonable Price’ Stocks to Buy Now
‘Growth at a reasonable price’ (GARP) is an investing strategy which fuses the best attributes of growth and value strategies. The recent market action has created opportunities to pick up high-quality growth stocks. 3 GARP stocks that investors should consider are Synchrony Financial (NYSE:SYF), PulteGroup Inc. (NYSE:PHM), and Cigna Corp . (NYSE:CI).Growth at a reasonable price (GARP) is a popular strategy that fuses attributes of growth investing and value investing. The most well-known practitioner of GARP investing is Peter Lynch who posted an impressive average annual return of 29.2% during his 13 years running the Magellan Fund.
GARP’s value discipline helps weed out the most overvalued growth stocks, while its growth component helps investors avoid value traps. One way to track the performance of GARP stocks is with the Invesco S&P 500 GARP ETF (SPGP). This ETF tracks a basket of stocks that have above-average growth rates with reasonable valuations. It’s outperformed so far this year with a 19.2% gain which is significantly better than the S&P 500’s 11.9% YTD gain.
I thought this is an apt time to highlight some GARP stocks given that we’ve experienced a significant correction in growth stocks over the past couple of months. Although the correction may not be over, it has created some interesting opportunities in high-quality GARP stocks. Here are 3 that investors should consider: Synchrony Financial (SYF), PulteGroup Inc. (PHM), and Cigna Corp. (CI).
3 ‘Growth at a Reasonable Price’ Stocks to Buy Now
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