Growth at a reasonable price (GARP) is an investment strategy that blends growth and value investing methodologies. Given the uncertainties surrounding the pace of economic recovery because of the resurgence of COVID-19 cases, the stock market is expected to be turbulent. So, we think investors looking to dodge short-term market fluctuations could consider these GARP stocks: Rio Tinto (NYSE:RIO), HCA Healthcare (NYSE:HCA), and Southern Copper (NYSE:SCCO). Read ahead to learn more.The growth at a reasonable price (GARP) strategy aims to deliver ideal investment bets by combining the best features of value and growth investing methodologies. GARP investors seek to gain from stocks that are valued below the market, or any reasonable target determined by fundamental analysis. These stocks also have promising growth expectations in terms of cash flow, revenue, EPS, and other metrics.
Following a smooth ride so far this year, the stock market now seems somewhat vulnerable due to weak economic recovery forecasts and the Fed’s policy meeting next week. Many analysts predict a “bumpy September-October” for the market. As such, GARP stocks could be ideal for investors that are looking to dodge short-term market fluctuations and gain from long-term trends.
Given this backdrop, we think Rio Tinto Group (RIO), HCA Healthcare Inc. (HCA), Southern Copper Corporation (SCCO), and ArcelorMittal (NYSE:MT), which possess GARP features, could be great additions to one’s portfolio now.