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Growth at a Reasonable Price (GARP)

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Goal/Rationale of the Screen

Growth at a reasonable price (or GARP) is a style that looks for both growth and value all at the same time. This style was made famous by the Fidelity legend Peter Lynch. The screen looks to find stocks with growth rates that are better than the market but with valuations that are below the market, giving you the best of both worlds.

Criteria

Edit Criteria Values | Criteria Definitions
CriteriaValue
EPS Growth (Last Qtr vs. Same Qtr Prior Yr)Greater than or Equal to 5.00%
EPS Growth (TTM vs Prior TTM)Greater than or Equal to 10.00%
EPS Growth (Proj This Quarter vs. Same Quarter Prior Yr)Greater than or Equal to 5.00%
EPS Growth (Proj this Yr vs. Last Yr)Greater than or Equal to 10.00%
P/E (This Year's Estimate)Less than or Equal to 15.0
PEG RatioLess than or Equal to 1.0
Security PriceGreater than or Equal to $5.00
Volume (90 Day Average)Greater than or Equal to 10.0K

Strategy

The concept behind growth at a reasonable price (GARP), is to find stocks that are considered outperformers in terms of growth rates and future potential but that can also still be considered undervalued or bargains based on their valuation metrics. By combining these two concepts together, it also helps exclude extremes on either side, i.e., huge growth rates (but with excessive valuations) or deeply discounted valuations (but sub-par growth rates). This is accomplished by searching for stocks with growth rates (both actual and projected on both a quarterly and annual basis) that are above the median for the market while also exuding valuations (namely the P/E and the PEG ratio) that are below the median for the market.

Things to Watch Out For

To make sure that this screen doesn't produce too many or too few stocks, periodically check the parameters for the above growth and valuation items to make sure they are still above or below their respective median as desired.

Summary

This strategy can appeal to both growth investors and value investors alike as it doesn't compromise on either philosophy. In fact, combining the two strategies together serves to enhance the selection process than if any one of them were used individually.

*How Scores Are DeterminedTop 10 of 49 Results AS OF 10:47 pm ET 08/08/22
Action
Score*Company NameSymbol
87COTERRA ENERGY INCCTRA
86SHELL PLCSHEL
86SUNCOR ENERGY INC.SU
85MOSAIC COMPANY (THE)MOS
85APA CORPORATIONAPA
85DEVON ENERGY CORPDVN
84CONOCOPHILLIPSCOP
84CANADIAN NATURAL RESOURCES LTDCNQ
83PIONEER NATURAL RESOURCES COPXD
83EOG RESOURCES INC.EOG
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This screen and the information about it was provided by the third-party identified above. The markets are unpredictable and past trends, events and performance may not be representative of future ones. Neither Fidelity nor the third-party can guarantee a particular outcome or provide any warranties as to the results obtained by the screen's use. The screen and its results are for educational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell securities, or a recommendation or endorsement of any security by Fidelity. Fidelity is not affiliated with the third party and does not recommend or endorse this screen. Fidelity does not endorse or adopt any particular investment strategy or approach to screening or evaluating securities.