4 GARP Stocks For A Winning Portfolio

Screening Parameters

Along with the criteria discussed in the above section, we have considered a favorable Zacks Rank #1 (Strong Buy) or 2 (Buy).

Last 5-year EPS & projected 3–5 year EPS growth rates between 10% and 20% (Strong EPS growth history and prospects ensure improving business.)

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

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

Here are four stocks that made it through the screen:

Allison Transmission Holdings, Inc. (ALSN - Free Report) is a designer and manufacturer of fully-automatic transmissions for commercial and defense vehicles. The company carries a Zacks Rank #2. It has an average four-quarter earnings surprise of 29.88%.

Booking Holdings Inc. (BKNG - Free Report) is an online travel company that offers hotel rooms, airline tickets, rental cars, vacation packages, cruises, “things to do” at customer destinations and travel insurance. The company has a Zacks Rank #2. It has an average four-quarter positive surprise of 4.28%.

Armstrong World Industries, Inc. (AWI - Free Report) is a global producer of ceiling systems for use primarily in the construction and renovation of commercial, institutional and residential buildings. The company carries a Zacks Rank #2. It has an average four-quarter positive surprise of 3.18%.

SEI Investments Company (SEIC - Free Report) is an asset management company offering wealth management business solutions that includes investment processing, management and operations solutions. The company has a Zacks Rank #2. It has an average four-quarter earnings surprise of 0.94%.

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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 ...

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