GARP Stocks: Growth at a Reasonable Price

34 Growth Companies Trading at a Fair Price.

Refreshed Jun 23, 2026

Access Peter Lynch's famous GARP framework: companies growing their earnings at 15%+ annually, but priced reasonably with a PEG ratio under 1.5.

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Screen VitalsEOD Data

Companies

Avg PEG Ratio

—

Avg EPS Growth

34.78%

Avg ROE

35.16%

GARP Tested

PEG Ratio ≤ 1.5

The 'G' in GARP

15%+ EPS Growth

Real Profits

Net Margin ≥ 0%

Quality Capital

ROE ≥ 12%

These stocks trade at a discount to the S&P 500's current 31.3x P/E (as of 2026-06-18). S&P 500 Valuation Dashboard →

Market Signal

Data Insight

This screen is currently exhibiting strong clustering in the Technology sector (29% of constituents).

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Compare Top 3 Open Screener

Ticker	Company	PEG	EPS G TTM	P/E	Rev G TTM	Rev G 3Y
CALM	Cal-Maine Foods, Inc.	0.0	84.2%	3.1	36.6%	33.9%
KLAC	KLA Corporation	0.3	28.6%	8.5	13.4%	9.7%
EAT	Brinker International, Inc.	0.3	40.8%	19.8	11.8%	12.3%
BLBD	Blue Bird Corporation	0.3	26%	19.1	10.1%	22.7%
SMCI	Super Micro Computer, Inc.	0.3	40.7%	18.3	56.2%	61.7%
UHS	Universal Health Services, Inc.	0.4	33.7%	6.1	10.4%	9%
EME	EMCOR Group, Inc.	0.5	31.6%	29.7	18.3%	15.3%
FSLR	First Solar, Inc.	0.6	31.6%	18.1	27.3%	25.8%
MOG-A	Moog Inc.	0.6	37.6%	55.8	13.7%	8.3%
EXLS	ExlService Holdings, Inc.	0.7	18.9%	16.8	13.4%	13.9%
IRMD	IRadimed Corporation	0.7	18.1%	52.7	14.8%	16.3%
UFPT	UFP Technologies, Inc.	0.7	15.4%	27.3	19.5%	19.4%
BOOT	Boot Barn Holdings, Inc.	0.8	25.4%	23.7	17.9%	10.8%
PAY	Paymentus Holdings, Inc.	0.8	46.2%	40.5	33%	34%
DY	Dycom Industries, Inc.	0.9	32.7%	47.8	29.8%	13.3%
PCTY	Paylocity Holding Corporation	0.9	16.5%	25.1	14.7%	23.2%
SFM	Sprouts Farmers Market, Inc.	0.9	16.9%	15.2	10.2%	11.2%
NFLX	Netflix, Inc.	0.9	27.6%	30.6	15.9%	12.6%
IESC	IES Holdings, Inc.	0.9	56.1%	47.4	16.5%	15.9%
MEDP	Medpace Holdings, Inc.	0.9	21.5%	30.1	24.2%	20.1%
COLL	Collegium Pharmaceutical, Inc.	1.1	68.1%	19.4	19.9%	18.9%
PRIM	Primoris Services Corporation	1.1	19.8%	20.2	13.4%	19.7%
GOOG	Alphabet Inc.	1.1	46.2%	34.0	17.5%	12.5%
GOOGL	Alphabet Inc.	1.1	46.2%	34.0	17.5%	12.5%
RMD	ResMed Inc.	1.1	16%	19.8	10.3%	12.9%
AMZN	Amazon.com, Inc.	1.2	36.2%	34.1	14.2%	11.7%
EHC	Encompass Health Corporation	1.2	20.5%	17.7	10%	10.9%
FIVE	Five Below, Inc.	1.2	66%	30.0	25.9%	15.7%
INTU	Intuit Inc.	1.3	33.9%	19.5	15.1%	14%
GEN	Gen Digital Inc.	1.4	51.9%	15.4	27.1%	14.7%

CALM

Cal-Maine Foods, Inc.

0.0PEG

EPS G TTM84.2%

P/E3.1

Rev G TTM36.6%

Rev G 3Y33.9%

KLAC

KLA Corporation

0.3PEG

EPS G TTM28.6%

P/E8.5

Rev G TTM13.4%

Rev G 3Y9.7%

EAT

Brinker International, Inc.

0.3PEG

EPS G TTM40.8%

P/E19.8

Rev G TTM11.8%

Rev G 3Y12.3%

BLBD

Blue Bird Corporation

0.3PEG

EPS G TTM26%

P/E19.1

Rev G TTM10.1%

Rev G 3Y22.7%

SMCI

Super Micro Computer, Inc.

0.3PEG

EPS G TTM40.7%

P/E18.3

Rev G TTM56.2%

Rev G 3Y61.7%

UHS

Universal Health Services, Inc.

0.4PEG

EPS G TTM33.7%

P/E6.1

Rev G TTM10.4%

Rev G 3Y9%

EME

EMCOR Group, Inc.

0.5PEG

EPS G TTM31.6%

P/E29.7

Rev G TTM18.3%

Rev G 3Y15.3%

FSLR

First Solar, Inc.

0.6PEG

EPS G TTM31.6%

P/E18.1

Rev G TTM27.3%

Rev G 3Y25.8%

MOG-A

Moog Inc.

0.6PEG

EPS G TTM37.6%

P/E55.8

Rev G TTM13.7%

Rev G 3Y8.3%

EXLS

ExlService Holdings, Inc.

0.7PEG

EPS G TTM18.9%

P/E16.8

Rev G TTM13.4%

Rev G 3Y13.9%

IRMD

IRadimed Corporation

0.7PEG

EPS G TTM18.1%

P/E52.7

Rev G TTM14.8%

Rev G 3Y16.3%

UFPT

UFP Technologies, Inc.

0.7PEG

EPS G TTM15.4%

P/E27.3

Rev G TTM19.5%

Rev G 3Y19.4%

BOOT

Boot Barn Holdings, Inc.

0.8PEG

EPS G TTM25.4%

P/E23.7

Rev G TTM17.9%

Rev G 3Y10.8%

PAY

Paymentus Holdings, Inc.

0.8PEG

EPS G TTM46.2%

P/E40.5

Rev G TTM33%

Rev G 3Y34%

Dycom Industries, Inc.

0.9PEG

EPS G TTM32.7%

P/E47.8

Rev G TTM29.8%

Rev G 3Y13.3%

PCTY

Paylocity Holding Corporation

0.9PEG

EPS G TTM16.5%

P/E25.1

Rev G TTM14.7%

Rev G 3Y23.2%

SFM

Sprouts Farmers Market, Inc.

0.9PEG

EPS G TTM16.9%

P/E15.2

Rev G TTM10.2%

Rev G 3Y11.2%

NFLX

Netflix, Inc.

0.9PEG

EPS G TTM27.6%

P/E30.6

Rev G TTM15.9%

Rev G 3Y12.6%

IESC

IES Holdings, Inc.

0.9PEG

EPS G TTM56.1%

P/E47.4

Rev G TTM16.5%

Rev G 3Y15.9%

MEDP

Medpace Holdings, Inc.

0.9PEG

EPS G TTM21.5%

P/E30.1

Rev G TTM24.2%

Rev G 3Y20.1%

COLL

Collegium Pharmaceutical, Inc.

1.1PEG

EPS G TTM68.1%

P/E19.4

Rev G TTM19.9%

Rev G 3Y18.9%

PRIM

Primoris Services Corporation

1.1PEG

EPS G TTM19.8%

P/E20.2

Rev G TTM13.4%

Rev G 3Y19.7%

GOOG

Alphabet Inc.

1.1PEG

EPS G TTM46.2%

P/E34.0

Rev G TTM17.5%

Rev G 3Y12.5%

GOOGL

Alphabet Inc.

1.1PEG

EPS G TTM46.2%

P/E34.0

Rev G TTM17.5%

Rev G 3Y12.5%

RMD

ResMed Inc.

1.1PEG

EPS G TTM16%

P/E19.8

Rev G TTM10.3%

Rev G 3Y12.9%

AMZN

Amazon.com, Inc.

1.2PEG

EPS G TTM36.2%

P/E34.1

Rev G TTM14.2%

Rev G 3Y11.7%

EHC

Encompass Health Corporation

1.2PEG

EPS G TTM20.5%

P/E17.7

Rev G TTM10%

Rev G 3Y10.9%

FIVE

Five Below, Inc.

1.2PEG

EPS G TTM66%

P/E30.0

Rev G TTM25.9%

Rev G 3Y15.7%

INTU

Intuit Inc.

1.3PEG

EPS G TTM33.9%

P/E19.5

Rev G TTM15.1%

Rev G 3Y14%

GEN

Gen Digital Inc.

1.4PEG

EPS G TTM51.9%

P/E15.4

Rev G TTM27.1%

Rev G 3Y14.7%

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Learn more about GARP Stocks: Growth at a Reasonable Price

How We Build This List

PEG Ratio ≤ 1.5 (The GARP Test)P/E ÷ EPS growth rate. Paying ≤1.5× for each point of growth = fair price. Automatically requires positive earnings.
EPS Growth TTM: 15%–100% (The "G" in GARP)Must be genuinely growing (15%+), not just cheap. 100% ceiling kills base-effect artifacts where EPS recovered from near-zero.
Revenue Growth TTM: 10%–200% (Revenue Confirms Earnings)Revenue is harder to manipulate than EPS. Confirms earnings growth comes from real demand, not buybacks or cost-cutting.
Revenue Growth 3Y ≥ 8% (Persistence Gate)Eliminates one-quarter spikes on flat businesses. TTM must be acceleration on top of multi-year compounding.
Net Margin ≥ 0% (Profitability Gate)PEG requires positive earnings. No loss-making companies can be evaluated on a GARP basis.
ROE ≥ 12% (Capital Efficiency Gate)Earnings must be meaningful relative to capital deployed — not growth via excessive dilution or debt.
Excludes Financial Services and Real Estate SectorsBanks and REITs have rate-driven P/E and earnings — PEG reflects rate cycles, not business quality.
Market Cap ≥ $1B (Liquidity and Scale)GARP discipline works best on companies with durable positions and institutional coverage.
Excludes ADRsCurrency translation makes ADR EPS growth unstable across periods. US-domiciled only for consistent PEG math.

Open Screener

What Makes a Stock a Peter Lynch GARP Stocks constituent?

The GARP (Growth at a Reasonable Price) strategy identifies companies growing earnings at 15%+ while maintaining a PEG ratio below 1.5. This screen filters for high-quality compounders like Microsoft in the early 2010s, which offered steady growth without the extreme valuation premiums seen in speculative tech.

PEG 1.5

Valuation Filter

PEG Ratio <= 1.5

ROE 12%

Quality Filter

ROE >= 12%

EPS 15%

Growth Filter

EPS Growth 15%-100%

Filter for Sustainable Growth

We target 15%+ EPS growth to avoid stagnant value traps like IBM in 2015, where lack of growth led to years of share price underperformance.

Validate with Revenue

Revenue growth of 10%+ ensures earnings aren't just accounting tricks, similar to how Amazon's 20%+ revenue growth in 2018 validated its massive scale.

Apply the PEG Discipline

By capping PEG at 1.5, we avoid overpaying for growth, a mistake investors made with Zoom in 2020 when its P/E exceeded 500x.

Performance Dynamics: When Does This Strategy Outperform?

Strategy performance behaves differently based on market conditions. Let's analyze when this strategy outperforms and when it lags:

When GARP Outperforms

✓ During the 2000-2002 dot-com crash, GARP stocks outperformed high-multiple tech by 20% as investors fled to companies with actual earnings.
✓ In 2022, when the Fed hiked rates 11 times, GARP stocks held value better than pure growth stocks, which saw multiples compress by 40%.
✓ During the 2009 recovery, companies with strong ROE and moderate PEG ratios beat the broader S&P 500 index by 12%.

When GARP Trails

✗ In the 2020 liquidity-fueled rally, speculative growth stocks with no earnings beat GARP stocks by 30% as investors ignored valuation.
✗ During the 1999 bubble, GARP stocks lagged as investors chased companies with 0% margins but 100% revenue growth.
✗ In periods of extreme market euphoria, like early 2021, the discipline of a 1.5 PEG ratio causes investors to miss out on momentum-driven parabolic moves.

How to Use the Screener Results Table

To build a resilient portfolio, do not buy stocks on simple statistics alone. Use the key columns in our table to audit the durability, safety, and returns of each stock:

PEG Ratio Multiplier

Measures price relative to growth; a PEG of 1.0 like Home Depot in 2012 suggests a fair price for its 15% growth rate.

ROE Percentage

Indicates capital efficiency; Apple's consistent 30%+ ROE over the last decade proves it generates massive returns on invested capital.

EPS Growth Percentage

Shows bottom-line momentum; Nvidia's 50%+ EPS growth in 2023 justified its premium valuation compared to slower-growing peers.

Revenue Growth Percentage

Confirms demand; Netflix's 20% revenue growth in 2019 provided the necessary foundation for its long-term earnings expansion.

Risk Factors & Warning Signs to Track

The Cyclical Earnings Trap

The biggest risk is mistaking a cyclical peak for permanent growth. For example, Intel in 2000 showed high growth and low P/E, but it was a cyclical peak; the stock fell 80% over the next two years as the semiconductor cycle turned.

What are GARP Stocks?

Finds growth companies trading at reasonable valuations using Peter Lynch's PEG ratio framework. It identifies stable growth businesses where future growth isn't overpriced.

PEG Ratio ≤ 1.5 (Fair Valuation)
EPS Growth TTM ≥ 15% (Genuine Growth)
Revenue Growth TTM ≥ 10% (Top-line confirmation)
Return on Equity (ROE) ≥ 12%

Why Invest in GARP Stocks?

Margin of Safety

Protects against valuation crashes by limiting PEG

Proven Compounding

Ensures solid compounding with 15%+ EPS growth

Quality First

Filters for efficient profit generation and margins

Peter Lynch's Metric

Replicates the classic Magellan Fund investment strategy

SCREEN CURATED BY

Anish Das

MBA, IIM Kozhikode · Founder & Individual Investor

5+ years experience

Methodology Verified

Review: Jun 2026

Founder of VCP Scanner, former Flipkart Brand Manager, and active US equity investor focused on transparent research workflows.

Editorial Disclosure: The data in this screener is systematically filtered using transparent rules, ensuring unbiased results. Reviewed for E-E-A-T standards. Not financial advice.

Frequently Asked Questions

Why exclude banks and REITs?

Banks and REITs rely on debt and interest rate spreads, which distort P/E and PEG ratios, making them incomparable to operating companies like Nike.

Is a PEG of 1.5 too high?

Peter Lynch famously preferred a PEG of 1.0, but 1.5 allows for high-quality compounders like Microsoft to remain in the screen during bull markets.

Why the 100% EPS growth cap?

Growth above 100% is often a base-effect artifact from a previous year's loss, such as Ford's earnings recovery in 2021.

How does this differ from Value investing?

Value investing looks for low P/E regardless of growth, whereas GARP requires growth, like buying Starbucks in 2010 when it was growing 20%.

Why require $1B market cap?

Small-cap stocks under $1B often have volatile earnings that make PEG ratios unreliable, as seen in the 2021 meme stock craze.

What if a company has a 0% PEG?

A 0% PEG implies zero growth or negative earnings, which violates the GARP requirement for consistent, positive earnings growth.

Does this screen work in a recession?

In 2008, GARP stocks with strong balance sheets and positive cash flow, like Walmart, significantly outperformed the broader market.

Can I use this for day trading?

No, GARP is a fundamental strategy for holding companies for 3-5 years, similar to how Buffett held Coca-Cola to capture long-term compounding.

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