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Chicago, IL – February 10, 2026 – Stocks in this week’s article are Amphenol APH, GE Aerospace GE, ResMed RMD and Ameriprise Financial AMP.
Add These GARP Stocks to Your Portfolio for 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. Amphenol, GE Aerospace, ResMed and Ameriprise Financial 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.
Here are four stocks from the 25 that made it through the screening process.
Amphenol is positioned for accelerated growth in 2026 following the acquisition of CommScope Connectivity and Cable Solutions, which expands capabilities in fiber optics and defense while adding $4.1 billion in annual sales capacity. This Zacks Rank #1 company demonstrated remarkable operational momentum with record fourth-quarter bookings of $8.4 billion and a robust 1.31:1 book-to-bill ratio, reflecting sustained customer demand across diversified end markets. Operating margin expansion to 27.5%, alongside exceptional free cash flow generation, underscores improving profitability and operational excellence.
Management highlighted AI infrastructure buildout as a significant demand catalyst, while the company's diversified market exposure and successful completion of five acquisitions during 2025 strengthened its competitive positioning. The February dividend approval further demonstrates financial strength and shareholder commitment entering the year.
The Zacks Consensus Estimate for APH’s 2026 earnings has moved north by 7.2% to $4.32 per share in the past 60 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 16.48%.
GE Aerospace has entered 2026 with compelling operational momentum following record 2025 performance that delivered 21% revenue growth and 26% services expansion. The January leadership restructuring, integrating Commercial Engines & Services with Technology & Operations, positions the company for enhanced execution efficiency. The successful demonstration of hybrid electric narrowbody engine technology, exceeding NASA benchmarks under the RISE program, advances the path toward 20%+ fuel efficiency improvements for next-generation aircraft.
The recent $300 million Singapore MRO investment through 2029 establishes AI-enabled inspection capabilities and automation infrastructure, expanding aftermarket capacity in Asia-Pacific where services demand continues accelerating. Defense deliveries surged 30% in 2025, with additional January contract wins reinforcing growth visibility. The expanded module repair capabilities and predictive maintenance technologies strengthen competitive positioning across commercial and defense segments.
The Zacks Consensus Estimate for this Zacks Rank #1 company’s 2026 earnings has moved north by 6.1% to $7.45 per share in the past 60 days. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average negative surprise being 14.27%.
ResMed's 2026 outlook strengthens on multiple fundamental catalysts. The January FDA clearance for Smart Comfort, its first AI-enabled digital medical device personalizing CPAP therapy, launches early 2026, addressing adherence challenges through machine learning. In the second quarter of fiscal 2026, it delivered 11% revenue growth and 310 basis points of gross margin expansion, demonstrating operational momentum. Published research in SLEEP demonstrates that each additional hour of PAP use reduces healthcare utilization by 4-6%, validating the economic value proposition.
The expanding digital health ecosystem now spans 140+ countries, while strong device and mask demand drives sustainable growth. Manufacturing efficiencies and component cost improvements enhance profitability. These fundamental drivers—innovation leadership, proven clinical outcomes, global scale, and operational excellence—position ResMed for continued market share gains and margin expansion throughout 2026.
The Zacks Consensus Estimate for this Zacks Rank #2 company’s 2026 earnings has moved north by 1.4% to $10.97 per share in the past 60 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 2.74%.
Ameriprise Financial has been witnessing strong fundamental momentum following record fourth-quarter earnings of $10.83 per share, reflecting 16% year-over-year growth. The wealth management franchise delivered record pretax operating earnings of $926 million with a robust 29.3% margin, driven by exceptional advisor productivity that reached $1.1 million per advisor annually. Bank assets expanded 7% to $25.3 billion, providing sustainable net investment income amid evolving interest rates.
This Zacks Rank #2 company recruited 91 experienced advisors during the fourth quarter, demonstrating continued success in attracting top talent. Asset management earnings surged 17% to $293 million with improved margins. Recent recognition as the highest-ranked diversified financial services firm on TIME's Most Iconic Companies list underscores the brand strength, supporting client and advisor growth trajectories throughout 2026.
The Zacks Consensus Estimate for AMP’s 2026 earnings has moved south by 0.4% to $41.49 per share in the past 60 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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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2841851/add-these-4-garp-stocks-to-your-portfolio-to-receive-handsome-returns
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
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