Zacks.com featured highlights include HCA Healthcare, Hubbell, Ferrari and Vertex
For Immediate Release
Chicago, IL – September 18, 2024 – Stocks in this week’s article are HCA Healthcare HCA, Hubbell HUBB, Ferrari RACE and Vertex VERX.
4 GARP Stocks to 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. HCA Healthcare, Hubbell, Ferrari and Vertex 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 the 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 four of the five stocks that made it through the screen:
HCA Healthcare is the largest non-governmental operator of acute care hospitals in the United States. These hospitals provide outpatient services, such as outpatient surgery, laboratory, radiology, respiratory therapy, cardiology and physical therapy. HCA currently sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.
HCA Healthcare has gained 49.9% year to date. It delivered a trailing four-quarter earnings surprise of 8.24%, on average. The Zacks Consensus Estimate for HCA’a 2024 earnings has moved 7.1% north to $22.46 per share over the past 60 days.
Hubbell designs and manufactures electrical and electronic products, such as plugs, receptacles, connectors, data signal processing components, lighting fixtures, and high-voltage test and measurement equipment. The company currently carries a Zacks Rank #2.
Hubbel has gained 25.5% in the year-to-date period. It has a trailing four-quarter earnings surprise of 1.21% on average. The Zacks Consensus Estimate for HUBB’s 2024 earnings has moved 0.7% north to $16.45 per share over the past 60 days.
Ferrari is a leading designer, manufacturer and seller of sports cars. Its products include sports car models like 458 Italia, 488 GTB, 488 Spider, F12 Berlinetta, 458 Speciale and grand tourer cars. RACE currently carries a Zacks Rank #2.
Ferrari has gained 37% year to date. It delivered a trailing four-quarter earnings surprise of 12.3%, on average. The Zacks Consensus Estimate for RACE’s fiscal 2024 earnings has moved 6.2% north to $8.71 per share over the past 60 days.
Vertex provides tax technology solutions like tax determination, compliance and reporting, tax data management, document management, pre-built integration, and industry-specific solutions in retail, leasing, communication and manufacturing industries principally across the United States and the international market. The company carries a Zacks Rank #2 at present.
Vertex has gained 71.8% in the year-to-date period. It has a trailing four-quarter earnings surprise of 18.49%, on average. The Zacks Consensus Estimate for HUBB’s 2024 earnings has moved 9.4% north to 58 cents per share over the past 60 days.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2337385/4-garp-stocks-to-scoop-up-for-maximum-returns
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HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report
Ferrari N.V. (RACE) : Free Stock Analysis Report
Hubbell Inc (HUBB) : Free Stock Analysis Report
Vertex, Inc. (VERX) : Free Stock Analysis Report