Notable Zacks.com featured locations include RPM International, WW Grainger, Grand Canyon Education, and Texas Roadhouse

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CHICAGO, Illinois – November 25, 2022 – The stocks in this week’s article are RPM International RPM, WW Grainger GWW, Grand Canyon Education LOPE and Texas Roadhouse TXRH.

4 GARP shares must be collected to achieve maximum returns

Growth at a Reasonable Price or GARP is an excellent strategy for earning quick profits from investments. The GARP approach helps identify stocks that are priced below the market or any reasonable target determined by fundamental analysis.

The strategy helps investors gain exposure to stocks that have bright prospects and are trading at a discount. GARP stocks have strong prospects in terms of cash flow, revenue, earnings per share (EPS) and more.

Therefore, a portfolio built on the basis of a GARP strategy contains the stocks that offer the best value and growth investment. RPM InternationalAnd the WW GraingerAnd the Education Grand Canyon And the Texas Roadhouse are some GARP stocks that are showing promise.

GARP measures – a combination of growth and value measures

GARP strategy strives to deliver an optimal investment by taking advantage of the best value and growth investing features. Investors who adopt the GARP approach prefer to buy stocks that are priced below the market or any reasonable target set by fundamental analysis. The stock has strong prospects in terms of cash flow, revenue, earnings per share and more.

Growth metrics

A history of strong earnings growth and impressive earnings prospects are key concepts that GARP investors borrow from this growth investing strategy. However, instead of normal super growth rates, the pursuit of stocks with a more stable and reasonable growth rate is one approach that GARP investors take. Thus, growth rates between 5% and 20% are ideal under the GARP strategy.

Return on equity (ROE) is another growth metric that GARP and growth investors consider. GARP investors look for a strong return on equity and above the industry average to identify superior stocks. Moreover, stocks with positive cash flow take precedence under the GARP plan.

value metrics

GARP investing prioritizes one of the common value metrics – the price-to-earnings (P/E) ratio. Although the investment style chooses stocks with higher P/E ratios than value investors, it avoids companies with very high P/E ratios. The price-to-book (P/B) ratio is also considered.

Using the GARP principle, we ran a screen to identify stocks that should offer strong returns in the near term.

Here are four stocks that made it through the screen:

RPM International It manufactures and markets high performance coatings, sealants, and specialty chemicals, primarily for maintenance and improvement applications. RPM currently has Zacks ranked #1. You can see The full list of Zacks #1 stocks today is here.

RPM delivered a surprise Q4 earnings rate of 7.34% on average. The Zacks consensus estimate for RPM’s fiscal 2023 earnings moved 2.4% north to $4.60 per share over the past 30 days.

WW Grainger is a large-scale, company-to-business distributor of MRO products and services, primarily operating in North America, Japan and the United Kingdom, and the company currently holds a Zacks No. 2 rating.

WW Grainger posted fourth-quarter earnings surprise up 10.1% on average. The Zacks consensus estimate for W.W. Grainger’s 2022 earnings moved 4.1% north to $29.31 per share over the past 30 days.

Education Grand Canyon It is an accredited provider of online post-secondary education services focused on offering graduate and undergraduate programs in its core disciplines of education, business, and healthcare. The company is currently rated Zacks #2.

Grand Canyon Education surprised fourth-quarter earnings, growing 4.79% on average. The Zacks consensus estimate for LOPE’s 2022 earnings moved 3.9% north to $5.85 per share over the past 30 days.

Texas Roadhouse It is a full-service casual restaurant chain that serves a variety of steaks seasoned and aged on the premises and cooked to order on open grills. The company is currently rated Zacks #2.

Texas Roadhouse posted fourth-quarter earnings surprise of 11.24% on average. Zacks Consensus’ estimate for 2022 earnings moved 4.6% north to $4.07 per share over the past 30 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/2021267/4-garp-stocks-to-scoop-up-for-maximum-returns

Disclosure: The officers, directors, and/or employees of Zacks Investment Research may own or sell short-term securities and/or hold long and/or short positions in the options described in this article. An affiliate investment advisory firm may own or have sold short securities and/or hold long and/or short positions in the options described in this Article.

About screen of the week

Zacks.com created the web’s first and best checking system and was awarded the distinction as the “#1 Stock Checking Site” by Money Magazine. But powerful scanning tools are just the beginning. That’s why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Strong stocks that should appear in the news

Many of them are little publicized and fly under Wall Street’s radar. They are almost unknown to the general public. However, 220 Zacks today’s #1 “strong buy” was created by a stock-picking system that more than doubled the market from 1988 through 2016. Its average gains were stellar +25% annually. Watch these high potential stocks for free >>.

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Past performance is not a guarantee of future results. Inherent in any investment is the potential for loss. This material is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice or a recommendation to buy, sell or hold a security. No recommendation or advice is made as to whether any investment is appropriate for a particular investor. It should not be assumed that any investments in the securities, companies, sectors or markets identified and described have been or will be profitable. All information is current as of the date herein and is subject to change without notice. Any views or opinions expressed may not reflect the views or opinions of the Company as a whole. Zacks Investment Research is not involved in investment banking, market making activities or asset management for any securities. These returns are from virtual portfolios consisting of stocks with a Zacks rating = 1 that are rebalanced monthly with no transaction costs. These are not actual portfolio returns of stocks. S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information on the performance numbers presented in this press release.

Zacks Names “Single Best Pick to Double”

Out of thousands of stocks, each of the 5 Zacks experts picked their favorite to skyrocket +100% or more in the coming months. Out of these five, Research Director Shiraz Mian selects one with the most explosive upside of all.

It’s a little-known chemical company, up 65% year-over-year, but it’s still cheap. With relentless demand, skyrocketing earnings estimates for 2022, and $1.5 billion in stock buybacks, retail investors could jump in at any time.

This company could rival or beat other recent Zacks stocks that are set to double like Boston Beer Company which is up +143.0% in just over 9 months and NVIDIA which is booming +175.9% in one year.

FREE: See our top stocks and 4 runners-up >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 of the best stocks for the next 30 days. Click to get this free report

Texas Roadhouse, Inc. (TXRH): Free stock analysis report

WW Grainger, Inc. (GWW): Free stock analysis report

Grand Canyon Education, Inc. (LOPE): Free stock analysis report

RPM International Inc. (RPM): Free stock analysis report

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The views and opinions expressed herein are those of the author and do not necessarily reflect the views and opinions of Nasdaq, Inc.

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