Add These 4 GARP Stocks to Your Portfolio 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 of value and growth investing. Tapestry TPR, Phibro Animal Health PAHC, Autodesk ADSK and Ameriprise Financial AMP 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 20% are considered ideal under the GARP strategy.

Another metric that growth and GARP investors consider is 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 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.

Screening Parameters

Along with the criteria discussed in the above section, we have considered a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Last 5-year EPS & projected 3-5-year EPS growth rates between 10% and 25% (Strong EPS growth history and prospects ensure improving business.)

ROE (over the past 12 months) greater than the industry average (Higher ROE than the industry average indicates superior stocks.)

P/E and P/B ratios less than the M-industry average (P/E and P/B ratios less than that of the industry indicate that the stocks are undervalued.)

Here are four stocks from the 25 that made it through the screening process.

Tapestry's Amplify growth strategy positions the company for sustained momentum in fiscal 2026. The Coach brand, which delivered 25% revenue growth in the fiscal second quarter, continues to accelerate through handbag innovation, with both AUR and unit volumes expanding simultaneously. Geographically, Tapestry is broadening its reach meaningfully, with Europe and Greater China emerging as powerful growth vectors. The company's direct-to-consumer channel, accounting for approximately 20% digital growth, underscores deepening consumer engagement.

Management raised its full-year revenue, operating margin, and EPS guidance following the February 2026 earnings announcement. It projects over 25% earnings per share growth for fiscal 2026. A quarterly dividend payable in March 2026, alongside a $1.2 billion buyback program, reflects strong free cash flow visibility and management's confidence in durable earnings growth ahead.

The Zacks Consensus Estimate for this Zacks Rank #1 company’s fiscal 2026 earnings has moved north by 3.6% to $6.34 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 12.84%.

Phibro Animal Health is well-positioned for sustained momentum through fiscal 2026, supported by a robust fundamental backdrop. The company's faster-than-expected integration of its acquired Medicated Feed Additive (MFA) portfolio is meaningfully expanding its Animal Health revenue base. Nutritional specialty products are benefiting from rising North American dairy demand, while poultry vaccine sales are gaining traction across Latin America and Southeast Asia. Management raised full-year fiscal 2026 net sales guidance to be between $1.45 billion and $1.50 billion (previously $1.43-$1.48 million). Adjusted earnings per share are expected in the range of $2.93-$3.10 (previously $1.83 to $2.08), reflecting operating confidence.

Mineral Nutrition is also growing, driven by increased demand for trace minerals and zinc. The company's quarterly dividend declaration in February 2026 further signals balance sheet strength and a commitment to shareholder returns, underpinning a compelling fundamental outlook.

The Zacks Consensus Estimate for this Zacks Rank #1 company’s fiscal 2026 earnings has moved north by 2% to $3.03 per share in the past 30 days. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average negative surprise being 20.15%.

Autodesk is strongly positioned for growth in 2026, underpinned by compelling fundamental catalysts. Its fiscal 2027 revenue guidance of $8.10–$8.17 billion signals strong forward momentum. In February 2026, Autodesk made its largest-ever startup investment — a $200 million strategic stake in World Labs — to advance physical-world AI capable of reasoning in three dimensions, embedding spatial intelligence into its design and construction platforms. The planned integration of Autodesk Construction Cloud into Autodesk Forma, effective March 24, consolidates its AECO cloud offerings into a unified platform. The March 2026 Fusion product update expands manufacturing and design capabilities. Together, these initiatives — physical-world AI leadership, platform consolidation, and deepening subscription monetization — create a compelling runway for sustained revenue growth and margin expansion through fiscal 2027.

The Zacks Consensus Estimate for this Zacks Rank #2 company’s fiscal 2027 earnings has moved north by 8% to $12.38 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 7.5%.

Ameriprise Financial is well-positioned to sustain momentum in 2026, underpinned by expanding institutional partnerships and a deepening fee-based revenue model. In February 2026, Huntington Bank selected Ameriprise as its new retail investment program provider, adding approximately 260 advisors and nearly $28 billion in client assets — a clear testament to the strength of its technology platform and integrated planning capabilities. Meanwhile, the March 2026 launch of Seligman Ventures, a $500 million venture capital arm targeting artificial intelligence and cloud infrastructure, signals meaningful diversification within Columbia Threadneedle's asset management franchise. The company's growing Financial Institutions Group, robust wrap account inflows, and consistent capital return discipline collectively reinforce a durable structural growth trajectory heading into the year.

The Zacks Consensus Estimate for this Zacks Rank #2 company’s 2026 earnings has moved south by 0.3% to $41.62 per share in the past 30 days. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.49%.

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Ameriprise Financial, Inc. (AMP): Free Stock Analysis Report

Autodesk, Inc. (ADSK): Free Stock Analysis Report

Phibro Animal Health Corporation (PAHC): Free Stock Analysis Report

Tapestry, Inc. (TPR): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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