Even though growth stocks haven't been performing as well recently, there's still a lot of upside left for many companies. This is especially true of growth stocks with attraction valuations such as G-III Apparel Group, LTD. (NASDAQ:GIII), Alkermes plc (NASDAQ:ALKS), and Methanex Corporation (NASDAQ:MEOH).Many growth stocks have not fared well over the past week, judging by the SPDR Portfolio S&P 500 Growth ETF's (SPYG) recent performance. These losses can be attributed to higher interest rates and concerns over the new COVID variant. However, that's no reason to stop investing in growth stocks. You just need to be more selective.
A growth strategy that typically performs better in volatile periods such as this is Growth at a Reasonable Price or GARP. The strategy essentially combines growth and value investing. Instead of ignoring a company's valuation, which many investors do with high-growth stocks, we only invest in growth stocks that look cheap.
This is very easy to accomplish with our POWR Ratings system. All we need to do is run a search for stocks that have an overall grade of A or B, a Growth Grade of A or B, and a Value Grade of B. This makes sure we're checking all the boxes. G-III Apparel Group, LTD. (GIII), Alkermes plc (ALKS), and Methanex Corporation (MEOH) are three stocks that fit the bill.