Zacks.com highlights include Carlisle Companies, East West Bancorp, WW Grainger and Automatic Data Processing

for immediate disclosure

Chicago, IL – Aug 10, 2022 – The stocks in this week’s article are Carlisle Companies CSL, East West Bancorp EWBC, WW Grainger GWW and Automatic Data Processing ADP.

4 GARP Stocks to Harvest for Maximum Returns

Growth at a reasonable price, or GARP, is an excellent strategy for making quick profits from investments. The GARP approach leads to the identification of stocks priced below market or any reasonable target determined by fundamental analysis.

The strategy helps investors gain exposure to stocks that have impressive prospects and are trading at a discount. GARP stocks have solid prospects in terms of cash flow, revenues, earnings per share (EPS) and so on.

Therefore, a portfolio created based on the GARP strategy is expected to have stocks that offer the best investment in value and growth. Carlisle Companies, East West Bank, WW Grainger and Automatic Data Processing are some promising GARP actions.

GARP Metrics – Combination of Growth and Value Metrics

The GARP strategy seeks to offer an optimal investment, utilizing the best investment characteristics in value and growth. Investors who take the GARP approach prefer to buy stocks at below market prices or any reasonable target determined by fundamental analysis. These stocks also have solid prospects in cash flow, revenue, earnings per share (EPS) and so on.

growth metrics

Both a strong track record of earnings growth and impressive earnings prospects are key concepts that GARP investors borrow from their growth investment strategy. However, instead of supernormal growth rates, chasing stocks with a more stable and reasonable growth rate is a GARP investor tactic. Thus, growth rates between 10% and 20% are considered optimal in the GARP strategy.

Another growth metric that is considered by growth investors and GARP is return on equity (ROE). GARP investors look for strong and higher ROE compared to the industry average to identify superior stocks. Also, cash flow positive stocks take precedence in the GARP plan.

value metrics

GARP investing prioritizes one of the popular value metrics – the price-to-earnings (P/E) ratio. While this investment style chooses stocks with higher P/E ratios compared to value investors, it avoids companies with extremely high P/E ratios. The price-to-book value (P/B) ratio is also considered.

Using the GARP principle, we run a screen to identify stocks that should deliver solid returns in the short term.

Here are four of the seven actions that flashed across the screen:

Carlisle Companies is engaged in designing, manufacturing and selling a wide range of roofing and waterproofing products, engineering products and finishing equipment. CSL currently boasts a Zacks Rank of 1. You can see the full list of today’s Zacks #1 Rank stocks here.

Carlisle has a surprise four-quarter earnings of 6.78% on average. The Zacks Consensus Estimate for CSL’s 2022 earnings is up 14.6% to $20.22 per share over the past 30 days.

East West Bank serves as a financial bridge between the United States and Greater China, providing a variety of personal and commercial banking services for small and medium-sized businesses, business executives, professionals, and others. The company currently boasts a Zacks Rank #1.

East West Bancorp has a surprise four-quarter earnings of 4.74% on average. The Zacks Consensus Estimate for EWBC’s 2022 earnings is up 8.9% to $7.79 a share in the past 30 days.

WW Grainger is a full-line, business-to-business distributor of maintenance, repair and operation products and services, operating primarily in North America, Japan and the United Kingdom. Currently, the company has a Zacks Rank #2.

WW Grainger has a surprise four-quarter earnings of 7.95% on average. The Zacks Consensus Estimate for WW Grainger’s 2022 moved north by 5.9% to $27.84 per share in the last 30 days.

Automatic Data Processing provides cloud-based human capital management technology solutions, including payroll, talent management, human resources and benefits administration, and time and attendance management. The company currently carries a Zacks Rank #2.

Automated Data Processing has a surprise four-quarter earnings of 5.02% on average. The Zacks Consensus Estimate for fiscal 2023 earnings rose 3.5% to $8.04 per share in the past 30 days.

Take the remaining actions from the list and start testing this and other ideas. All of this can be done with Research Wizard’s stock selection and bounce test software.

The Search Assistant is a great place to start. It’s easy to use. Everything is in plain language. And it’s very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open the Research Assistant, plug in your findings, and see which gems come out.

Click here to sign up for a free trial of Research Wizard today.

For the rest of this Screen of the Week article, visit Zacks.com at: https://www.zacks.com/stock/news/1965915/4-garp-stocks-to-scoop-up-for-maximum-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 mentioned in this material. An affiliated investment advisory firm may own or have shorted securities and/or hold long and/or short positions in options mentioned in this material.

About the week screen

Zacks.com created the first and best sorting system on the web earning the distinction as the “#1 Stock Sorting Site” by Money Magazine. But powerful screening tools are just the beginning. That’s why Zacks created Screen of the Week to highlight profitable stock-picking strategies that investors can actively use.

Strong stocks that should be in the news

Many are little publicized and fly under Wall Street’s radar. They are virtually unknown to the general public. However, today’s 220 Zacks Rank #1 “Strong Buys” were generated by the stock selection system that more than doubled the market from 1988 to 2016. Its average gain was 25% per year. See these free high potential stocks >>.

Follow us on Twitter: https://www.twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch

Zacks Investment Research is under common control with affiliated entities (including a brokerage firm and an investment adviser), which may engage in transactions involving the former securities for the clients of such affiliates.

Contact: Jim Giaquinto

Company: Zacks.com

Phone: 312-265-9268

Email: [email protected]

Visit: https://www.zacks.com/

Zacks.com provides investment resources and informs you of these resources, which you can choose to use to make your own investment decisions. Zacks is providing information about this feature to you in accordance with the disclaimer of Zacks’ “Terms and Conditions of Service”. www.zacks.com/disclaimer.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described have been or will be profitable. All information is current as of the date of this document and is subject to change without notice. Any views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management of any securities. These returns are from hypothetical portfolios composed of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction cost. These are not the returns of actual stock portfolios. The S&P 500 is an unmanaged index. Please visit https://www.zacks.com/performance for information on the performance numbers displayed in this press release.

Cashing in on the Metaverse, The 3rd Internet Boom (Free Report):

Get Zacks’ special report revealing key profit plays for the next evolution of the internet. Early investors still have time to get close to the “ground floor” of this $30 trillion opportunity. You will discover 5 surprising actions to help you profit.

Download the FREE report today >>

Click to get this free report

Automatic Data Processing, Inc. (ADP): Free Inventory Analysis Report

WW Grainger, Inc. (GWW): Free Share Analysis Report

Carlisle Companies Incorporated (CSL): Free Share Analysis Report

East West Bankcorp, Inc. (EWBC): Free Share Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Leave a Reply