3 ‘Growth at a Reasonable Price’ Stocks to Buy Now

imageStock Markets21 minutes ago (May 26, 2021 03:30PM ET)

(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).

Continue reading on StockNews

3 ‘Growth at a Reasonable Price’ Stocks to Buy Now

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.