Zacks.com strengths include: East West Bancorp, Automatic Data Processing, CDW Corp. and W. W. Grainger

For immediate release

Chicago, IL – February 16, 2022 – Stocks in this week’s article are East West Bancorp EWBC, Automatic Data Processing ADP, CDW Corp. CDW and WW Grainger GWW.

4 GARP stocks for a winning portfolio

Investors looking for stocks with the potential for maximum growth and value investing may consider Growth at a Reasonable Price or the GARP strategy.

This popular strategy helps investors gain exposure to stocks with impressive growth prospects that are trading at a discount. GARP investing uses popular measures of value — price-to-earnings (P/E) and price-to-book (P/B) — to assess whether a stock is undervalued.

GARP Metrics – Mixture of Growth and Value Metrics

The GARP strategy seeks to provide an ideal investment by utilizing the best characteristics of value and growth investments. Investors taking the GARP approach will prefer to buy stocks that are priced below the market or any reasonable target determined by fundamental analysis. These stocks also have strong prospects for cash flow, revenue, earnings per share (EPS), and more.

Growth indicators

A strong track record of earnings growth and an impressive earnings outlook are the main concepts that GARP investors borrow from the growth investing strategy. However, instead of higher than normal growth rates, looking for stocks with a more stable and reasonable growth rate is also a tactic of GARP investors. Therefore, growth rates between 10% and 20% are considered ideal under the GARP strategy.

Another measure of growth considered by both growth investors and GARP investors is return on equity (ROE). GARP investors look for a strong, higher ROE relative to the industry average to identify superior stocks. In addition, stocks with positive cash flows find priority under the GARP plan.

Value Metrics

GARP investing prioritizes one of the popular measures of value – the price-to-earnings (P/E) ratio. Although this style of investing selects stocks with higher P/E ratios than value investors, it avoids companies with extremely high P/E ratios. In addition, the price-to-book (P/B) ratio is also taken into account.

Here are four of the six stocks that crossed the screen:

Bancorp East-West 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 currently sports a No. 1 Zacks rank.

East West Bancorp has a four-quarter earnings surprise of 8.39% on average. EWBC’s 2022 Zacks consensus estimate has moved north 6.6% to $6.49 per share in the past 30 days.

Automatic data processing is a provider of cloud-based human capital management technology solutions, including payroll, talent management, human resources and benefits administration, and time and attendance management. The company carries a Zacks Rank #2.

Automatic data processing has an earnings surprise for the last four quarters of 5.5% on average. The Zacks consensus estimate for ADP’s fiscal year 2022 has moved north 0.7% to $6.82 per share in the past 30 days.

CDW Corp. is a leading provider of integrated information technology (IT) solutions for small, medium and large businesses, governments, educational institutions and healthcare. The company currently carries a No. 2 Zacks rank.

CDW has a four-quarter earnings surprise of 9.8% on average. The Zacks consensus estimate for 2022 has moved north 6.2% to $9.27 per share in the past 60 days.

WW Grainger is a wide range of business-to-business distributors of maintenance, repair and operation products and services that operates primarily in North America, Japan and the United Kingdom.

WW Grainger has a four-quarter earnings surprise of 1.65% on average. WW Grainger’s 2022 Zacks consensus estimate has moved north 4.4% to $24.61 per share in the past 60 days.

For the rest of this article on Screen of the Week, please visit Zacks.com at: https://www.zacks.com/stock/news/1867917/4-garp-stocks-for-a-winning-portfolio

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 the options mentioned herein. An affiliated investment advisory firm may hold or have shorted securities and/or hold long and/or short positions in options mentioned herein.

About the week screen

Zacks.com created the first and best screening system on the web, earning it the “#1 Site for Stock Screening” accolade from Money Magazine. But powerful screening tools are just the start. That’s why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Solid stocks that should make headlines

Many are low profile and fly under Wall Street’s radar. They are almost unknown to the general public. Yet the 220 “strong buys” in today’s Zacks #1 ranking were generated by the stock picking system that more than doubled the market from 1988 to 2016. Its average gain was +25% per year. See these high-potential stocks for free >>.

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 broker and investment adviser), which may engage in transactions involving the aforementioned securities for clients of such affiliates.

Contact: Jim Giaquinto

Company: Zacks.com

Phone: 312-265-9268

Email: [email protected]

To visit: https://www.zacks.com/

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 about this resource to you subject to the Zacks “Terms and Conditions of Service” disclaimer. www.zacks.com/disclaimer.

Past performance is not indicative of future results. The potential for loss is inherent in any investment. This document is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether any investment is suitable for any particular investor. It should not be assumed that investments in the securities, companies, sectors or markets identified and described have been or will be profitable. All information is current as of the date hereof and is subject to change without notice. The 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 securities. These returns come from hypothetical portfolios composed of stocks with Zacks Rank = 1 that have been rebalanced monthly without transaction fees. These are not the returns of actual stock portfolios. The S&P 500 is an unmanaged index. To visit https://www.zacks.com/performance for more information on the performance figures displayed in this press release.

5 shares ready to double

Each was handpicked by a Zacks expert as the #1 preferred stock to earn +100% or more in 2021. Previous recommendations have skyrocketed +143.0%, +175.9%, + 498.3% and +673.0%.

Most of the stocks in this report fly under the radar on Wall Street, which provides a great opportunity to get in on the ground floor.

Today, check out these 5 potential home runs >>

Click to get this free report

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

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

East West Bancorp, Inc. (EWBC): Free Stock Analysis Report

CDW Corporation (CDW): Free Stock 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.

Comments are closed.