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Zacks.com featured highlights W.W. Grainger, Ameriprise Financial, Grand Canyon Education and Texas Roadhouse

For Immediate Release

Chicago, IL – December 7, 2022 – Stocks in this week’s article are W.W. Grainger GWW, Ameriprise Financial AMP, Grand Canyon Education LOPE and Texas Roadhouse TXRH.

Scoop Up These 4 GARP Stocks to Net Handsome Returns

If you are looking for a profitable portfolio of stocks offering the best 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 both value and growth investing.  W.W. Grainger, Ameriprise Financial, Grand Canyon Education and Texas Roadhouse 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 both 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

Both 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 5% and 20% are considered ideal under the GARP strategy.

Another growth metric that both growth and GARP investors consider is the return on equity (ROE). GARP investors look for a strong and higher ROE than the industry average to identify superior stocks. Moreover, stocks with positive cash flows find precedence under the GARP plan.

Value Metrics

GARP investing prioritizes the popular value metrics — the price-to-earnings (P/E) ratio and the price-to-book (P/B) ratio. Though this investing style picks stocks with higher P/E ratios compared to 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 of the five stocks that made it through the screen:

W.W. Grainger is a broad-line, business-to-business distributor of maintenance, repair and operating products and services, operating primarily in North America, Japan and the U.K. The company currently carries a Zacks Rank #2.  You can see the complete list of today's Zacks #1 Rank stocks here.

W.W. Grainger has a trailing four-quarter earnings surprise of 10.1%, on average. The Zacks Consensus Estimate for W.W. Grainger’s 2022 earnings has moved 4.4% north to $29.31 per share over the past 60 days.

Ameriprise Financial is a financial services company, which offers financial planning and advice via its broad range of products and services to customers. The company currently carries a Zacks Rank #2.

Ameriprise Financial has a trailing four-quarter earnings surprise of 4.83%, on average. The Zacks Consensus Estimate for AMP’s 2022 earnings has moved 2.5% north to $24.56 per share over the past 60 days.

Grand Canyon Education is an accredited provider of online post-secondary education services focused on offering graduate and undergraduate degree programs in its core disciplines of education, business and healthcare.  The company currently carries a Zacks Rank #2.

Grand Canyon Education has a trailing four-quarter earnings surprise of 4.79%, on average. The Zacks Consensus Estimate for LOPE's 2022 earnings has moved 3.9% north to $5.85 per share over the past 60 days.

Texas Roadhouse is a full-service, casual dining restaurant chain, which offers an assortment of specially seasoned and aged steaks on the premises and cooked to order over open grills. The company currently carries a Zacks Rank #2.

Texas Roadhouse has a trailing four-quarter earnings surprise of 11.24%, on average. The Zacks Consensus Estimate for 2022 earnings has moved 5.4% north to $4.07 per share over the past 60 days.

Get the remaining stock on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back testing software.

The Research Wizard is a great place to begin. 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 up the Research Wizard, plug your finds in, and see what gems come out.

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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/2025674/scoop-up-these-4-garp-stocks-to-net-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.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the 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 the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.

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Contact: Jim Giaquinto

Company: Zacks.com

Phone: 312-265-9268

Email: pr@zacks.com

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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being 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 were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Ameriprise Financial, Inc. (AMP) : Free Stock Analysis Report

Texas Roadhouse, Inc. (TXRH) : Free Stock Analysis Report

W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report

Grand Canyon Education, Inc. (LOPE) : Free Stock Analysis Report

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Zacks Investment Research