Stocks

5 Top GARP Stocks with Attractive PEG Ratios

Published September 11, 2024

Investors often search for stocks that offer growth at a reasonable price (GARP), which combines elements of value and growth investing. A popular metric for identifying GARP stocks is the price/earnings to growth (PEG) ratio, as it measures a stock's valuation against its expected earnings growth. PEG ratios below 1 are typically considered to indicate undervalued stocks with growth potential. With this in mind, we have selected five stocks that exemplify strong GARP attributes, supported by discounted PEG ratios. The stocks in focus are HRB, KT, and ZIM, each bringing unique business strengths to the table.

H&R Block, Inc. HRB

H&R Block, Inc., prevalent in the tax preparation industry, offers both DIY and assisted services for tax return preparation. Operating primarily across the United States, Canada, and Australia, the Kansas City-based firm is well-rooted in delivering robust tax-related solutions. HRB's growth and potential, coupled with its favorable PEG ratio, make it a standout GARP pick in the financial sector.

KT Corporation KT

KT Corporation is a powerhouse in telecommunications, providing a vast spectrum of integrated services and platforms. With headquarters in Seongnam, South Korea, KT extends its reach globally, showcasing a strong potential for growth balanced by attractive valuation metrics, making it an appealing choice for GARP investors interested in tech and communications.

ZIM Integrated Shipping Services Ltd. ZIM

ZIM Integrated Shipping Services Ltd. operates as a prominent player in the container shipping industry. With its base in Haifa, Israel, ZIM extends its shipping and associated services across the globe. Investment in ZIM is backed by promising growth prospects in international trade and a discounted PEG ratio, signaling a notable opportunity for those seeking GARP stocks within the global shipping domain.

GARP, PEG, Investment