5 GARP Stocks To Scoop Up For Maximum Returns

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 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 five of the nine stocks that made it through the screen:

Gartner, Inc. (IT - Free Report) is a leading information technology research and advisory firm, which offers rich domain expertise and technology-related insights necessary for informed decision-making process. The company sports a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 78.68%, on average.

East West Bancorp, Inc. (EWBC - Free Report) serves as a financial bridge between the United States and Greater China by providing various personal and commercial banking services to small and medium-sized businesses, business executives, professionals, and other individuals. The company sports a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 11.97%, on average.

Landstar System, Inc. (LSTR - Free Report) is an asset-light provider of integrated transportation management solutions. The company sports a Zacks Rank #1 currently. It has a trailing four-quarter earnings surprise of 22.1%, on average.

HCA Healthcare, Inc. (HCA - Free Report) is the largest non-governmental operator of hospitals and related healthcare entities in the United States. The company carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 67.08%, on average.

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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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Jimmy Richards 1 month ago Member's comment

The World according to GAAAAAAARP! Actually I purchased this dip today and went deep. Figured I'd plant some money here for the summer to rest a bit and grab a divi and let it ride for awhile.