PEG-Rated Stocks to Boost Your Portfolio: 4 GARP Stocks to Invest In

Four stocks, Carnival Corporation (CCL), Levi Strauss & Co. (LEVI), Vodafone Group (VOD), and Invesco (IVZ), demonstrate the success of GARP investing, which combines value and growth principles. GARP investors prioritize the price/earnings growth (PEG) ratio, with a lower ratio (preferably <1) indicating undervaluation and future growth potential. However, the PEG ratio has drawbacks, such as not considering changing growth rates, so investors should consider other relevant parameters when using it.

In the realm of equity markets, investors often grapple with the question of whether to adopt a value strategy or a growth approach, especially during periods of market instability. The GARP (growth at a reasonable price) strategy offers a hybrid approach that combines the best of both worlds, making it an attractive option for many investors. Four stocks—Carnival Corporation (CCL), Levi Strauss & Co. (LEVI), Vodafone Group (VOD), and Invesco (IVZ)—demonstrate the efficacy of this strategy.

The GARP strategy focuses on identifying stocks that are somewhat undervalued but also have solid, sustainable growth potential. One key metric used in this approach is the price/earnings growth (PEG) ratio, defined as (Price/ Earnings)/Earnings Growth Rate. A lower PEG ratio, preferably less than 1, indicates both undervaluation and future growth potential. However, it's crucial to note that the PEG ratio has its limitations, such as not accounting for changing growth rates over time.

Carnival Corporation (CCL)
Headquartered in Miami, FL, Carnival Corporation operates as a cruise and vacation company. With a Zacks Rank #2 and a Value Score of A, Carnival is an impressive GARP investment pick. The stock boasts a discounted PEG and P/E ratio, along with an impressive long-term historical growth rate of 28.5%.

Levi Strauss & Co. (LEVI)
Levi Strauss designs, markets, and sells apparel and accessories globally. With a Zacks Rank #1 and a Value Score of B, Levi Strauss is another strong GARP investment. The stock offers a discounted PEG and P/E ratio, coupled with a solid long-term historical growth rate of 9.5%.

Vodafone Group (VOD)
Vodafone provides telecom services across various regions. With a Zacks Rank #1 and a Value Score of A, Vodafone is an impressive value investment pick. The stock features a discounted PEG and P/E ratio, along with an impressive long-term historical growth rate of 11.8%.

Invesco (IVZ)
Invesco is an independent investment manager with a substantial asset under management (AUM). With a Zacks Rank #1 and a Value Score of B, Invesco is another strong GARP investment. The stock offers a discounted PEG and P/E ratio, along with a solid long-term expected growth rate of 6.3%.

While the PEG ratio is a valuable tool, investors should consider other relevant parameters to enhance their GARP strategies. The Research Wizard offers a comprehensive platform for investors to screen and analyze stocks based on various criteria, including PEG ratio, P/E ratio, Zacks Rank, market capitalization, trading volume, and earnings estimate revisions.

References:
1. [NUMBER:1] https://finviz.com/news/108249/4-finest-peg-rated-garp-stocks-to-boost-your-portfolio-now
2. [NUMBER:2] https://finance.yahoo.com/news/griffon-gff-outpaces-stock-market-221503263.html