GARP
Definition
Growth At a Reasonable Price — an investment strategy that seeks companies with above-average growth trading at reasonable valuations.
Explanation
GARP combines elements of growth and value investing, seeking stocks with strong earnings growth that aren't priced at extreme multiples. Peter Lynch popularized GARP through his management of the Fidelity Magellan Fund. The PEG ratio (P/E divided by earnings growth rate) is the classic GARP metric — a PEG below 1.0 suggests the stock is cheap relative to its growth rate. GARP avoids the extremes of pure value (often stale companies) and pure growth (often overpriced).
How Stoquity Uses This
Stoquity incorporates garp analysis across its portfolio management platform, providing real-time monitoring and AI-powered insights for every portfolio.