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:
Results are sorted by:
And limited to the first 200 Results
| Returns |  |
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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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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 |
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