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Growth at a Reasonable Price Screen 180 Qualifying

Growth at a Reasonable Price (GARP) is a strategy that aims to highlight companies that are growing but still reasonably priced by the market. It's an approach suggested by journalist and investor David Stevenson in his book, Smarter Stock Picking. It uses a combination of value, growth, quality and momentum measures. They include earnings-per-share growth, a below average price-to-earnings ratio, a high return on capital employed and a share price with positive relative strength. David Stevenson says: "At the core of GARP is is a simple desire: to benefit from a double whammy of growing earnings and a growing PE ratio that reflects this growth of earnings."

Smarter Stock Picking: Using Strategies from the Professionals to Improve Your Returns

by David Stevenson

This screen implements the generic GARP approach outlined in David Stevenson's excellent book, "Smarter Stock Picking".

This screen uses the following criteria:

  • Mkt Cap £m > 200
  • EPS 3y CAGR % > 10
  • EPS 5y CAGR % > 10
  • P/E < Median P/E
  • P/E < 20
  • EPS > 0
  • ROCE % > 12
  • ROCE % > 1 * ROCE % PTTM
  • Net Mgn % > 1 * Net Mgn % 1y Ago
  • RS 1y > 0

Results are sorted by:

  • RS 1y in descending order


And limited to the first 200 Results


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Performance Tracking


Returns FTSE 100
1 week -2.0% -0.8% -0.9% -6.8% -2.7% -4.7% -0.9% -2.7%
1 month -2.6% -4.5% -1.5% -8.1% -3.7% -2.6% 0.5% -3.9%
3 months 6.8% -3.7% 1.6% -23.6% 12.0% 6.1% 12.1% 7.4%
6 months 3.4% -4.4% -0.7% -35.9% 6.3% 10.2% 0.6% -0.6%
1 year 20.0% 2.1% 13.1% -26.2% 13.6% 17.4% 10.6% 1.5%
2 years 85.7% 66.2% 38.3% 49.1% 30.8% 79.3% 51.8% 21.4%
Annualised 25.8% 21.4% 10.6% 30.9% 6.5% 30.9% 16.3%
 
Risks
Max Drawdown -29.3% -15.0% -22.2% -42.2% -18.9% -11.7% -15.7%
Avg Holdings 8.5 22.9 19.2 9.8 2.9 25 4.6
Diversification Moderate Good Good Moderate Low Good Low

 Studies based on equal weighted portfolios of max 25 stocks rebalanced quarterly. Qualifying shares below updated daily. Past performance not indicative of future returns.



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180 Qualifying

Ticker Name Mkt Cap £m Sector EPS 3y CAGR % EPS 5y CAGR % P/E ROCE % ROCE % PTTM Net Mgn % Net Mgn % 1y Ago RS 1y Flag
Subscriber Subscriber Industrials India
Subscriber Subscriber Technology Hong Kong
Subscriber Subscriber Basic Materials Singapore
Subscriber Subscriber Financials United Kingdom
Subscriber Subscriber Basic Materials United Kingdom
Subscriber Subscriber Industrials Hong Kong
Subscriber Subscriber Consumer Cyclicals