Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Zacks.com Featured Highlights: CBRE Group, Canadian Pacific Railway, East West Bancorp, Hasbro And Masimo

Published 08/11/2017, 08:18 AM
Updated 07/09/2023, 06:31 AM

For Immediate Release

Chicago, IL –August 11, 2017 - Stocks in this week’s article include CBRE Group Inc.(NYSE: (NYSE:CBG) – Free Report), Canadian Pacific Railway Limited (NYSE: (NYSE:CP) – Free Report), East West Bancorp Inc. (NASDAQ: (NASDAQ:EWBC) – Free Report), Hasbro Inc. (NASDAQ: (NASDAQ:HAS) – Free Report) and Masimo Corporation (NASDAQ: (NASDAQ:MASI) – Free Report).

Top 5 GARP Stocks to Scoop Up Now

Investors following the growth or value strategy have always been on the lookout for stocks that are poised to see strong growth and available at a discount. Growth at a reasonable price or GARP investing is a strategy that takes care of these criteria.

However, one should not confuse GARP investing with the blend strategy. While the blend strategy promotes investment in both value and growth stocks, GARP investing requires both value and growth features in a single stock.

As the GARP strategy employs the principles of both value and growth, returns are more consistent and predictable irrespective of the market condition.

GARP Metrics – Mix of Growth & Value Metrics

The GARP approach prefers stocks that are priced below the market or any reasonable target determined by fundamental analysis. These stocks also have solid prospects in terms of cash flow, revenues and earnings per share (EPS).

Growth Metrics

Strong earnings growth history and impressive earnings prospects are the main concepts that GARP investors borrow from the growth investing strategy. However, instead of super-normal growth rates, picking stocks with a more stable and reasonable growth rate is a preferred tactic of GARP investors. Hence, growth rates between 10% and 20% are considered ideal under the strategy.

Another growth metric that is considered by both growth and GARP investors is return on equity (ROE). GARP investors look for strong and higher ROE compared to the industry average to identify superior stocks. Moreover, stocks with positive cash flow find precedence under the GARP plan.

Value Metrics

GARP investing gives priority to one of the popular value metrics – price-to-earnings (P/E) ratio. Though this investing style picks stocks with higher P/E ratios compared to value investors, it avoids companies with extremely high P/E ratios. Moreover, the price-to-book value (P/B) ratio is another value metric that is considered.

Using the GARP principle, we have run a screen to identify stocks that are poised to offer solid returns in the near term.

Screening Parameters

Along with the criteria discussed in the above section, we have considered a favorable Zacks Rank #1 (Strong Buy) or 2 (Buy).

Last 5-year EPS & projected 3–5 year EPS growth rates between 10% and 20% (Strong EPS growth history and prospects ensure improving business.)

ROE (over the past 12 months) greater than the industry average (Higher ROE compared to the industry average indicates superior stocks.)

P/E and P/B ratios less than M-industry average (P/E and P/B ratios less than that of the industry indicates that the stocks are undervalued.)

These few criteria have narrowed down the universe of over 7,700 stocks to only 11.

Here are five stocks that made it through the screen:

Los Angeles CA-based CBRE Group Inc. (NYSE:CBGFree Report) operates as a commercial real estate services and investment company. It has an average four-quarter positive earnings surprise of 18.71% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Headquartered in Calgary, Canada, Canadian Pacific Railway Limited (NYSE:CPFree Report) operates a transcontinental railway network in Canada and the U.S. The company focuses on providing logistics and supply chain expertise services. The company sports a Zacks Rank #1.

Pasadena, CA-based East West Bancorp Inc. (NASDAQ:EWBCFree Report) is the holding company for East West Bank, East West Capital Trust I, East West Capital Trust II and Risk Services Inc. The company has an average four-quarter positive earnings surprise of 8.63% and carries a Zacks Rank #2.

Pawtucket, RI-based Hasbro Inc. (NASDAQ:HASFree Report) is engaged in the design, manufacture and marketing of games and toys. The company has a Zacks Rank #2 and an average four-quarter positive earnings surprise of 19.06%.

Irvine, CA-based Masimo Corporation (NASDAQ:MASIFree Report) develops, manufactures and markets a family of non-invasive monitoring systems. The company has an average four-quarter positive earnings surprise of 8.11% and carries a Zacks Rank #2.

Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back testing software.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here https://at.zacks.com/?id=112

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time!Click here for your free subscription to Profit from the Pros.

Get the full Report on CBG - FREE

Get the full Report on CP - FREE

Get the full Report on EWBC - FREE

Get the full Report on HAS - FREE

Get the full Report on MASI - FREE

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook (NASDAQ:FB): https://www.facebook.com/ZacksInvestmentResearch

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Contact: Jim Giaquinto

Company: Zacks.com

Phone: 312-265-9268

Email: pr@zacks.com

Visit: https://www.zacks.com/performance

Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.



Canadian Pacific Railway Limited (CP): Free Stock Analysis Report

East West Bancorp, Inc. (EWBC): Free Stock Analysis Report

Masimo Corporation (MASI): Free Stock Analysis Report

CBRE Group, Inc. (CBG): Free Stock Analysis Report

Hasbro, Inc. (HAS): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.