Unlock Handsome Returns with These 4 GARP Stocks Today
Discover how the growth at a reasonable price (GARP) strategy blends value and growth investing to identify promising stocks like GE Aerospace and The Cheesecake Factory for balanced, risk-adjusted returns.
Key Takeaways
- GARP blends value and growth investing for balanced returns
- Ideal GARP stocks show 10%-25% earnings growth with reasonable valuations
- GE Aerospace, Howmet, Cencora, and Cheesecake Factory are top GARP picks
- Strong ROE and positive cash flow signal superior GARP stocks
- Zacks Rank #1 or #2 stocks fit well within GARP criteria
Investing often feels like choosing between growth’s thrill and value’s safety. Enter GARP—growth at a reasonable price—a strategy that marries both worlds. It hunts for stocks that aren’t just flying high but are priced smartly, avoiding the pitfalls of overhyped “story stocks.”
This balanced approach focuses on companies with steady earnings growth between 10% and 25%, solid fundamentals, and valuations that don’t make your wallet wince. Think of it as finding the sweet spot where opportunity meets prudence.
In this article, we’ll explore four standout GARP stocks—GE Aerospace, Howmet Aerospace, Cencora, and The Cheesecake Factory—that embody this strategy. We’ll unpack what makes them tick and how GARP investing can reshape your portfolio with handsomely rewarding picks.
Blending Growth and Value
Imagine trying to catch a shooting star without burning your fingers. That’s the challenge pure growth investors face—high returns often come with sky-high prices. On the flip side, value investors hunt bargains but sometimes get stuck with slow growers. GARP investing is the savvy middle ground.
It seeks companies growing earnings steadily—think 10% to 25%—but trading at prices that don’t make you cringe. This means looking beyond flashy stories to fundamentals like P/E ratios and return on equity (ROE). A GARP stock isn’t just about growth; it’s about growth you can trust at a price that makes sense.
This approach helps investors avoid the trap of overpaying for hype or missing out on growth. It’s like picking a reliable car that’s both fast and fuel-efficient, rather than a flashy sports car that guzzles gas or a clunky sedan that barely moves.
Spotlight on GE Aerospace
GE Aerospace designs and builds jet engines and integrated systems for military and commercial aircraft. Its strength lies in robust demand for commercial engines and rising defense budgets worldwide. Picture a company riding the tailwinds of geopolitical tensions and airline recovery.
In 2025, GE Aerospace expects organic revenue growth in the low double digits—a steady climb, not a rollercoaster. The stock has surged nearly 64% year-to-date, backed by a 16% average earnings surprise over the past four quarters. Investors have noticed, pushing 2025 earnings estimates up to $5.87 per share.
GE Aerospace’s portfolio reshaping and additive technologies hint at unlocking shareholder value. It’s a textbook GARP stock: solid growth, reasonable valuation, and strong fundamentals. For those wary of sky-high valuations but hungry for growth, GE Aerospace offers a grounded yet promising flight path.
Howmet Aerospace’s Momentum
Howmet Aerospace engineers solutions for transportation and aerospace sectors, including defense and commercial markets. The company benefits from a commercial aerospace rebound and robust defense spending, especially with programs like the F-35 fighter jet.
Howmet’s liquidity and shareholder-friendly moves, like a 20% dividend hike announced in August 2025, signal confidence. The stock’s 60.6% year-to-date surge and a 7% average earnings surprise reflect this momentum.
With 2025 earnings estimates climbing to $3.57 per share, Howmet Aerospace exemplifies GARP’s sweet spot: steady growth paired with reasonable valuation. It’s a story of engineering success meeting smart investing discipline.
Cencora’s Specialty Edge
Cencora stands as a giant in pharmaceutical services, focusing on drug distribution to cut healthcare costs and improve outcomes. Its specialty products—biologics, gene therapies, and plasma medicines—are high-value, complex treatments driving growth.
The company’s expanding distribution network ensures efficient delivery, supporting revenue and margin growth. Demand for GLP-1 therapies, used in diabetes and weight management, fuels this momentum.
With a 29.3% year-to-date gain and a 6.2% average earnings surprise, Cencora fits the GARP mold: growth with reasonable valuation. Its 2025 earnings estimate nudged up to $15.88 per share, reflecting steady confidence in its pharmaceutical niche.
The Cheesecake Factory’s Growth Recipe
The Cheesecake Factory isn’t just about desserts; it’s a restaurant powerhouse with a growing portfolio, including Fox Restaurant Concepts brands like Flower Child and North Italia. These unique dining experiences fuel long-term growth.
Higher consumer demand, new restaurant openings, and tech upgrades like contactless menus boost operational efficiency. The stock’s 30.5% year-to-date rise and 15% average earnings surprise highlight strong execution.
With 2025 earnings estimates raised to $3.76 per share, CAKE blends steady growth with reasonable valuation—classic GARP traits. It’s a tasty example of how value and growth can coexist on your plate.
Long Story Short
GARP investing isn’t about chasing fireworks or settling for slow movers. It’s the art of blending growth’s promise with value’s discipline, crafting a portfolio that aims for steady, handsome returns without reckless risk. The four stocks we spotlight—GE Aerospace, Howmet Aerospace, Cencora, and The Cheesecake Factory—showcase how this strategy plays out in real markets. Each company boasts strong earnings growth, solid ROE, and valuations that respect your capital. Their recent performance, with year-to-date gains ranging from nearly 30% to over 60%, underscores the power of GARP’s balanced lens. The relief of investing in firms with robust cash flows and shareholder-friendly policies can’t be overstated. For investors seeking a middle path between growth’s excitement and value’s caution, GARP offers a compelling roadmap. By focusing on reasonable prices and sustainable growth, you’re not just chasing returns—you’re building a resilient portfolio that stands the test of market cycles.