GARP Stocks: Growth at a Reasonable Price

34 Growth Companies Trading at a Fair Price.

Anish DasCurated by Anish Das
Refreshed Jun 14, 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 VitalsLive Metrics
Companies
34
Avg PEG Ratio
Avg EPS Growth
35.52%
Avg ROE
33.14%
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 31.1x P/E (as of 2026-06-12). S&P 500 Valuation Dashboard →
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Compare Top 3 Open Screener
TickerCompanyPEGEPS G TTMP/ERev G TTMRev G 3Y
Collegium Pharmaceutical, Inc.1.168.1%20.019.9%18.9%
IRadimed Corporation0.718.1%53.514.8%16.3%
UFP Technologies, Inc.0.715.4%26.819.5%19.4%
Blue Bird Corporation0.326%18.410.1%22.7%
Paymentus Holdings, Inc.0.846.2%40.633%34%
Cal-Maine Foods, Inc.0.084.2%3.136.6%33.9%
ExlService Holdings, Inc.0.818.9%18.713.4%13.9%
Boot Barn Holdings, Inc.0.825.4%23.217.9%10.8%
Primoris Services Corporation1.119.8%19.713.4%19.7%
Paylocity Holding Corporation1.016.5%27.114.7%23.2%
Federal Signal Corporation1.328.7%27.223.3%15%
Brinker International, Inc.0.340.8%19.111.8%12.3%
Zurn Elkay Water Solutions Corporation1.428.9%43.210%9.8%
Sprouts Farmers Market, Inc.1.016.9%16.310.2%11.2%
Argan, Inc.1.559.6%65.914.5%27.6%
Universal Health Services, Inc.0.433.7%6.310.4%9%
Encompass Health Corporation1.320.5%18.310%10.9%
Five Below, Inc.1.366%30.725.9%15.7%
Moog Inc.0.637.6%53.913.7%8.3%
Medpace Holdings, Inc.1.021.5%30.624.2%20.1%
Dycom Industries, Inc.0.932.7%49.129.8%13.3%
Gen Digital Inc.1.451.9%15.527.1%14.7%
IES Holdings, Inc.1.056.1%49.916.5%15.9%
Super Micro Computer, Inc.0.340.7%18.156.2%61.7%
ResMed Inc.1.216%20.510.3%12.9%
First Solar, Inc.0.631.6%18.827.3%25.8%
EMCOR Group, Inc.0.531.6%29.218.3%15.3%
Intuit Inc.1.433.9%20.215.1%14%
Howmet Aerospace Inc.1.440.4%71.314.2%13.4%
Arista Networks, Inc.1.523.7%59.430.6%27.1%
COLL logoCOLL
Collegium Pharmaceutical, Inc.
1.1PEG
EPS G TTM68.1%
P/E20.0
Rev G TTM19.9%
Rev G 3Y18.9%
IRMD logoIRMD
IRadimed Corporation
0.7PEG
EPS G TTM18.1%
P/E53.5
Rev G TTM14.8%
Rev G 3Y16.3%
UFPT logoUFPT
UFP Technologies, Inc.
0.7PEG
EPS G TTM15.4%
P/E26.8
Rev G TTM19.5%
Rev G 3Y19.4%
BLBD logoBLBD
Blue Bird Corporation
0.3PEG
EPS G TTM26%
P/E18.4
Rev G TTM10.1%
Rev G 3Y22.7%
PAY logoPAY
Paymentus Holdings, Inc.
0.8PEG
EPS G TTM46.2%
P/E40.6
Rev G TTM33%
Rev G 3Y34%
CALM logoCALM
Cal-Maine Foods, Inc.
0.0PEG
EPS G TTM84.2%
P/E3.1
Rev G TTM36.6%
Rev G 3Y33.9%
EXLS logoEXLS
ExlService Holdings, Inc.
0.8PEG
EPS G TTM18.9%
P/E18.7
Rev G TTM13.4%
Rev G 3Y13.9%
BOOT logoBOOT
Boot Barn Holdings, Inc.
0.8PEG
EPS G TTM25.4%
P/E23.2
Rev G TTM17.9%
Rev G 3Y10.8%
PRIM logoPRIM
Primoris Services Corporation
1.1PEG
EPS G TTM19.8%
P/E19.7
Rev G TTM13.4%
Rev G 3Y19.7%
PCTY logoPCTY
Paylocity Holding Corporation
1.0PEG
EPS G TTM16.5%
P/E27.1
Rev G TTM14.7%
Rev G 3Y23.2%
FSS logoFSS
Federal Signal Corporation
1.3PEG
EPS G TTM28.7%
P/E27.2
Rev G TTM23.3%
Rev G 3Y15%
EAT logoEAT
Brinker International, Inc.
0.3PEG
EPS G TTM40.8%
P/E19.1
Rev G TTM11.8%
Rev G 3Y12.3%
ZWS logoZWS
Zurn Elkay Water Solutions Corporation
1.4PEG
EPS G TTM28.9%
P/E43.2
Rev G TTM10%
Rev G 3Y9.8%
SFM logoSFM
Sprouts Farmers Market, Inc.
1.0PEG
EPS G TTM16.9%
P/E16.3
Rev G TTM10.2%
Rev G 3Y11.2%
AGX logoAGX
Argan, Inc.
1.5PEG
EPS G TTM59.6%
P/E65.9
Rev G TTM14.5%
Rev G 3Y27.6%
UHS logoUHS
Universal Health Services, Inc.
0.4PEG
EPS G TTM33.7%
P/E6.3
Rev G TTM10.4%
Rev G 3Y9%
EHC logoEHC
Encompass Health Corporation
1.3PEG
EPS G TTM20.5%
P/E18.3
Rev G TTM10%
Rev G 3Y10.9%
FIVE logoFIVE
Five Below, Inc.
1.3PEG
EPS G TTM66%
P/E30.7
Rev G TTM25.9%
Rev G 3Y15.7%
MOG-A logoMOG-A
Moog Inc.
0.6PEG
EPS G TTM37.6%
P/E53.9
Rev G TTM13.7%
Rev G 3Y8.3%
MEDP logoMEDP
Medpace Holdings, Inc.
1.0PEG
EPS G TTM21.5%
P/E30.6
Rev G TTM24.2%
Rev G 3Y20.1%
DY logoDY
Dycom Industries, Inc.
0.9PEG
EPS G TTM32.7%
P/E49.1
Rev G TTM29.8%
Rev G 3Y13.3%
GEN logoGEN
Gen Digital Inc.
1.4PEG
EPS G TTM51.9%
P/E15.5
Rev G TTM27.1%
Rev G 3Y14.7%
IESC logoIESC
IES Holdings, Inc.
1.0PEG
EPS G TTM56.1%
P/E49.9
Rev G TTM16.5%
Rev G 3Y15.9%
SMCI logoSMCI
Super Micro Computer, Inc.
0.3PEG
EPS G TTM40.7%
P/E18.1
Rev G TTM56.2%
Rev G 3Y61.7%
RMD logoRMD
ResMed Inc.
1.2PEG
EPS G TTM16%
P/E20.5
Rev G TTM10.3%
Rev G 3Y12.9%
FSLR logoFSLR
First Solar, Inc.
0.6PEG
EPS G TTM31.6%
P/E18.8
Rev G TTM27.3%
Rev G 3Y25.8%
EME logoEME
EMCOR Group, Inc.
0.5PEG
EPS G TTM31.6%
P/E29.2
Rev G TTM18.3%
Rev G 3Y15.3%
INTU logoINTU
Intuit Inc.
1.4PEG
EPS G TTM33.9%
P/E20.2
Rev G TTM15.1%
Rev G 3Y14%
HWM logoHWM
Howmet Aerospace Inc.
1.4PEG
EPS G TTM40.4%
P/E71.3
Rev G TTM14.2%
Rev G 3Y13.4%
ANET logoANET
Arista Networks, Inc.
1.5PEG
EPS G TTM23.7%
P/E59.4
Rev G TTM30.6%
Rev G 3Y27.1%
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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.

What Makes a Stock a Peter Lynch GARP Stocks constituent?

Growth At a Reasonable Price (GARP) is an investment strategy popularized by Peter Lynch. It targets growth stocks with reasonable valuations, filtering for PEG ratios under 1.5 and ROE above 12%.

PEG
Valuation Gate
PEG Ratio <= 1.5
GROWTH
EPS Growth
TTM EPS Growth >= 15%
ROE
Capital Efficiency
ROE >= 12% Minimum
1

Establish the Valuation Cap

Ensure the PEG ratio is 1.5 or lower, protecting your capital from growth valuation compression.

2

Verify Growth Floor

Require trailing 12-month EPS growth above 15% to confirm active business expansion.

3

Check Capital Return

Confirm Return on Equity is 12% or higher to verify management capital efficiency.

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 Leads

  • Late-cycle markets when high growth valuations compress.
  • Steady expansion phases when margins and sales grow.
  • Volatile sideways markets with solid earnings support.

When GARP Trails

  • Speculative tech runs when unprofitable growth leads.
  • Deep value rotations when cyclical commodity names surge.
  • Deflationary periods when low-risk growth is scarce.

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

P/E divided by EPS growth rate. Focus on ratios under 1.5x.

EPS Growth (TTM) Percentage

Measures trailing earnings growth. Aim for >15%.

Return on Equity (ROE) Percentage

Gauges capital efficiency. ROE above 12% is required.

Net Margin Percentage

Requires positive margins to filter out unprofitable growth.

Risk Factors & Warning Signs to Track

Watch for Cyclical Value Traps

Commodity-driven sectors can show artificially low PEG ratios due to cyclical price spikes. Verify that growth is supported by multi-year structural trends, not temporary commodity shortages.

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

Frequently Asked Questions

What is GARP investing?
GARP (Growth At a Reasonable Price) is an investment strategy that looks for companies with strong, consistent earnings growth, but only buys them if their valuation is reasonable compared to that growth rate.
Who popularized the GARP strategy?
Peter Lynch, the legendary manager of the Fidelity Magellan Fund, popularized the strategy in his book 'One Up on Wall Street.'
What is the PEG ratio?
The Price-to-Earnings-to-Growth (PEG) ratio is calculated by dividing a stock's P/E ratio by its earnings growth rate. A PEG of 1.0 indicates fair value.
What is a good PEG ratio?
A PEG ratio under 1.0 is considered cheap; under 1.5 is considered reasonable. Ratios above 2.0 imply growth is fully priced in.
How is GARP different from value investing?
Value investing buys cheap stocks regardless of growth. GARP is willing to pay a moderate premium for strong, consistent growth.
Which sectors have the most GARP stocks?
Technology, Healthcare, and Consumer Discretionary contain the most GARP stocks.
How does interest rate policy affect GARP stocks?
Rising interest rates compress multiples, making GARP's valuation floor attractive compared to high-P/E growth stocks.
Should I use the PEG ratio on cyclical stocks?
No. Cyclical firms (like steel or auto) can show low PEG ratios during peak earnings cycles that are unsustainable. Focus on companies with recurring, non-cyclical sales.

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