4 GARP Stocks That Investors Can 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. Royal Gold RGLD, NVIDIA NVDA, Expedia Group EXPE and Amphenol APH are some promising GARP stocks.

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 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 take 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.

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

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

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

Here are four out of the 15 stocks that made it through the screen.

Royal Gold has been benefiting from its solid streaming agreements. The company maintains a strong balance sheet, which is likely to drive growth in the upcoming quarters. It is focused on allocating its strong cash flow to dividends, debt reduction and new businesses. Gold prices have been on an uptrend this year, aided by geopolitical reasons, a depreciating U.S. dollar, the potential for monetary policy easing and continuous purchasing by central banks. Silver has also gained on the back of the recent expansion seen in the U.S. manufacturing sector. This rise in gold and silver prices will boost the company’s results in the coming quarters. 

Royal Gold has completed the acquisition of Sandstorm Gold Ltd., bringing the two precious metals streaming and royalty companies under a single entity. The combined entity boasts a larger, more diversified global portfolio of precious metal assets, with 40 producing assets added from Sandstorm's portfolio.

This Zacks Rank #1 stock has returned 77.8% in the past six-month period. It has a trailing four-quarter earnings surprise of 3.92%, on average. The Zacks Consensus Estimate for RGLD’s 2026 earnings has moved north by 20.7% to $12.13 per share over the past 60 days.

NVIDIA entered 2026 with powerful growth catalysts across multiple verticals. The newly unveiled Rubin platform introduces six chips designed to power next-generation AI supercomputers, positioning the company for continued datacenter dominance. Physical AI expansion continues with global partnerships delivering industry-specific robots. The BioNeMo platform addresses pharmaceutical drug discovery alongside the groundbreaking Eli Lilly co-innovation lab. Automotive prospects have strengthened with Mercedes-Benz deploying NVIDIA DRIVE AV software in the all-new CLA, showcasing full autonomous vehicle stack readiness. 

Gaming maintains momentum through DLSS 4.5, featuring dynamic multi-frame generation technology. The BlueField-4 processor powers AI-native storage infrastructure, addressing scaling requirements for enterprise AI factories. These diverse revenue streams, spanning healthcare, automotive, gaming, industrial automation and retail, demonstrate NVIDIA’s ability to monetize AI infrastructure across the global economy, establishing sustainable competitive advantages throughout 2026.

This Zacks Rank #1 stock has returned 7.3% in the past six-month period. It has a trailing four-quarter earnings surprise of 2.77%, on average. The Zacks Consensus Estimate for NVDA’s fiscal 2026 earnings has moved north by 0.9% to $4.66 per share over the past 60 days.

Expedia’s strong brand portfolio, comprising Brand Expedia, Hotels.com, Vrbo, Orbitz, Travelocity, ebookers and Wotif Group, to name a few, offers a full range of travel and advertising services to travelers, suppliers and business partners. The pending Tiqets acquisition strengthens its activities segment, adding curated experiences across 60+ countries and 1,000 cities to create comprehensive full-trip travel solutions. This bolsters the rapidly growing activities vertical, enabling higher-value, end-to-end bookings.

The B2B platform evolution continues with live Car API serving 110+ brands across 190 countries, with expanded Vrbo API offering 1 million vacation rental properties and Travel Protection API featuring Cancel for Any Reason coverage. These integrated APIs create a seamless booking ecosystem across lodging, car rentals, vacation rentals and insurance. Platform improvements targeting Asia and Europe markets, unified API architecture, and AI-driven capabilities position Expedia to capture international travel momentum. Diversified revenue streams across B2B partnerships, advertising, and consumer brands provide multiple growth levers as travel demand accelerates in 2026.

This Zacks Rank #2 stock has surged 41.3% in the past six-month period. It has a trailing four-quarter earnings surprise of 4.53%, on average. The Zacks Consensus Estimate for EXPE’s 2026 earnings has moved north by 1.2% to $18.44 per share over the past 60 days.

Amphenol benefits from a diversified business model that lowers the volatility of individual end markets and geographies. The January 2026 completion of the CommScope Connectivity and Cable Solutions acquisition adds substantial scale, with the business projected to generate approximately $4.1 billion in full-year sales while contributing immediate earnings accretion. This transaction expands fiber optic interconnect capabilities critical for artificial intelligence datacenter applications and broadband infrastructure.

The company's momentum in IT datacom remains exceptional, capitalizing on AI-driven infrastructure buildouts requiring advanced interconnect solutions. Recent product launches, including the Floating Mate Connector Series for energy storage systems announced in December 2025, position Amphenol to capture growth in electrification and renewable energy markets. Combined with record operating margins exceeding 27% and a 52% dividend increase, Amphenol demonstrates strong execution while deploying capital effectively for sustained shareholder value creation.

This Zacks Rank #2 stock has returned 53.5% in the past six-month period. It has a trailing four-quarter earnings surprise of 17.9%, on average. The Zacks Consensus Estimate for APH’s 2026 earnings has moved north by 2% to $4.05 per share over the past 60 days.

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

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