Zacks.com featured highlights include Carnival, Micron Technology, Synchrony Financial and Ericsson

For Immediate Release

Chicago, IL – October 24, 2025 – Stocks in this week’s article areCarnival Corp. CCL, Micron Technology MU, Synchrony Financial SYF and Ericsson ERIC.

4 Low-PEG GARP Stocks That Perfectly Balance Growth with Value

Over the past few months, the market cacophony has made hybrid investment particularly relevant. While volatility remains elevated amid global policy uncertainty and uneven sectoral growth, the broader earnings picture has strengthened. For example, the blended earnings growth rate for the S&P 500 in the third quarter of 2025 is 13.7%, with 86.9% of companies beating EPS estimates (Zacks Earnings Analysis).

Meanwhile, expectations of a gradual shift in Federal Reserve policy toward rate easing have begun to stabilize discount-rate pressure, improving the risk-reward balance for fundamentally strong companies.

In this environment, investments need to be prudently hedged to overcome uncertainties and limit losses related to external shocks. A question that often arises is whether one should resort to a value strategy that seeks discounted stocks or opt for growth investing in times of extreme market instability.

The investing track of the Oracle of Omaha over the past few decades and his gradual shift from being a pure-play value investor to a GARP (growth at a reasonable price) investor might give us all the answers.

Per the GARP theory, the strategic mingling of growth and value-investing principles gives us a hybrid strategy, offering an ideal investment by utilizing the best features of both. What GARPers look for is whether or not the stocks are somewhat undervalued and have solid, sustainable growth potential (Investopedia).

Several stocks that have surged significantly in recent years have demonstrated the overwhelming success of this hybrid investing strategy over pure-play value and growth investments. Here, we will discuss the success of four such stocks. These are Carnival Corp., Micron Technology, Synchrony Financial and Ericsson.

A Few More Words on GARP

GARP investing gives priority to one of the popular value metrics — the price/earnings growth (PEG) ratio. Although it is categorized under value investing, this strategy follows the principles of both growth and value investing.

The PEG ratio is defined as (Price/ Earnings)/Earnings Growth Rate

It relates the stocks' P/E ratios to the future earnings growth rates.

While P/E alone gives an idea of stocks that are trading at a discount, PEG, while adding the growth element to it, helps identify stocks with solid future potential.

A lower PEG ratio, preferably less than 1, is always better for GARP investors.

Say, for example, if a stock's P/E ratio is 10 and the expected long-term growth rate is 15%, the company's PEG will come down to 0.66, a ratio indicating both undervaluation and future growth potential.

Unfortunately, this ratio is often neglected due to investors' limitations in calculating the future earnings growth rate of a stock.

There are some drawbacks to using the PEG ratio though. It does not consider the very common situation of changing growth rates, such as the forecast of the first three years at a very high growth rate, followed by a sustainable but lower growth rate over the long term.

Hence, PEG-based investing can be even more rewarding if some other relevant parameters are also taken into consideration.

Here are four stocks that qualified the screening:

Carnival: Headquartered in Miami, FL, the company operates as a cruise and vacation company. As a single economic entity, Carnival Corporation & Carnival plc forms the largest cruise operator in the world. Carnival is the world's leading leisure travel firm and carries nearly half of the global cruise guests. The company operates in North America, Australia, Europe and Asia.

CCL stock can be an impressive value investment pick with its Zacks Rank #1 and a Value Score of A. Apart from a discounted PEG and P/E, Carnival also has an impressive long-term historical growth rate of 28.5%.

Micron: Idaho-based Micron Technology has established itself as one of the leading worldwide providers of semiconductor memory solutions. Micron's latest quarterly performance underscores its strategic positioning in the rapidly expanding AI-driven memory and storage markets. The positive impact of inventory improvement across multiple end markets is adding to top-line growth.

Micron can be an impressive GARP investment pick with its Zacks Rank #1 and a Value Score of B. Apart from a discounted PEG and P/E, the stock has an impressive long-term expected growth rate of 28.5%.

You can see the complete list of today's Zacks #1 Rank stocks here.

Synchrony Financial: As one of the nation's premier consumer financial services companies, Synchrony Financial offers a wide range of credit products through a diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and health and wellness providers. Synchrony Financial focuses on generating financial flexibility for its customers through offerings like private label credit cards, Dual Card and many more.

SYF stock can also be an impressive GARP investment pick with its Zacks Rank #2 and a Value Score of A. Apart from a discounted PEG and P/E, Synchrony Financial has a solid long-term historical growth rate of 13.1%.

Ericsson: Headquartered in Stockholm, Sweden, Ericsson is a leading provider of communication networks, telecom services and support solutions. The company is a leader in telecommunications and is now expanding its role into an ICT (Information and Communications Technology) solutions provider.

ERIC stock can be an impressive value investment pick with its Zacks Rank #2 and a Value Score of B. Apart from a discounted PEG and P/E, Ericsson also has an impressive long-term expected growth rate of 8.4%.

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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/2775755/4-low-peg-garp-stocks-that-perfectly-balance-growth-and-value

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