In this article, we will take a look at the 14 Best GARP Stocks to Buy According to Analysts.
Innovation and rapid technological change, driven by the rise of artificial intelligence, are reshaping markets. AI is increasingly seen as a source of profits and productivity gains, and that has shifted how investors think about growth and valuation. Markets have experienced similar booms before. Many of them ended with volatility. This time, though, the belief that AI represents a lasting shift has allowed sentiment and narrative to play a larger role in driving stock performance.
According to a report by T. Rowe Price, some companies that have been overlooked still offer steady earnings, reliable cash flow, and growth at reasonable valuations. These growth at a reasonable price, or GARP, companies have the potential to deliver strong long-term returns. They tend to rise steadily and compound over time. They often perform well in weaker or flat markets, even if they do not lead during the most speculative rallies.
Ashley Woodruff, portfolio manager for the US Mid-Cap Growth Equity Strategy at T. Rowe Price Investment Management, said the approach has proven effective over time. She made the following comment:
“Over the long-term, GARP has been a good approach. The price matters for anything you buy. Momentum only works as long as there is someone on the other side willing to pay more for an asset you know is overvalued.”
She added that GARP does not require a full market reversal to regain attention. She further said:
“It doesn’t need to be a full market reversal that will bring GARP back into favor. We expect broadening to occur going forward, with the spread of earnings growth between the Tech+ and ex-tech sectors of the S&P 500 Index at the end of September at its narrowest since the first quarter of 2023.”
This shift could bring renewed investor interest in companies with durable fundamentals. These businesses are often well-managed and generate consistent cash flow. They operate with strong competitive advantages and maintain solid growth prospects across different sectors.
Given this, we will take a look at some of the best GARP stocks.
Our Methodology:
We used screeners to identify stocks with a PEG ratio of less than 1, with positive analyst sentiment. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
14. Global Payments Inc. (NYSE:GPN)
On February 23, Cantor Fitzgerald analyst Ramsey El-Assal raised the price recommendation on Global Payments Inc. (NYSE:GPN) to $88 from $80. The analyst reiterated a Neutral rating on the stock. He told investors that the company’s Q4 results acted as a clearing event. He noted that FY26 guidance points to 5% adjusted net revenue growth excluding dispositions. The outlook also includes 150 basis points of adjusted operating margin expansion, adjusted EPS of $13.80 to $14.00, and adjusted free cash flow conversion exceeding 90%, according to his research note.
During the Q4 2025 earnings call, CEO Cameron Bready said the company had completed the Worldpay acquisition and divested the Issuer Solutions business in January. He described this as a major milestone in the strategic transformation that has been underway for the past 18 months.
He said the company delivered 6% constant currency adjusted net revenue growth in the fourth quarter, excluding dispositions. Adjusted operating margins improved by 80 basis points. Adjusted EPS increased by 12%. For the full year, Bready indicated that adjusted net revenue growth gained momentum. It rose from 5% in the first half to 6% in the second half. Adjusted operating margins expanded by 100 basis points during the year. Adjusted EPS climbed by 11%.
He also said the company achieved more than 100% adjusted free cash flow conversion in 2025. This allowed Global Payments to return $1 billion to shareholders. The company generated another $1.2 billion through portfolio divestitures. He added that Global Payments approved a $2.5 billion share repurchase program. This includes an immediate accelerated buyback of $550 million.
Global Payments Inc. (NYSE:GPN)provides payments technology, software, and related services to customers worldwide. Through its Merchant Solutions segment, the company delivers payments technology and software mainly to small and medium-sized businesses, along with select mid-market and enterprise clients.
13. Centene Corporation (NYSE:CNC)
On February 25, Truist raised its price recommendation on Centene Corporation (NYSE:CNC) to $49 from $47. The firm maintained a Buy rating on the shares. The analyst told investors that the firm remains bullish on the stock following positive meetings with management. Truist said it sees meaningful margin opportunities across the company’s segments. The firm also noted that current initiatives are supporting steady improvement. It expects continued progress as Centene works toward unlocking more of its earnings potential.
During the Q4 2025 earnings call, CEO Sarah London reported an adjusted diluted loss per share of ($1.19) for the fourth quarter. For the full year 2025, adjusted diluted EPS totaled $2.08. She acknowledged that 2025 had been a difficult year. Still, she said disciplined execution helped the company finish slightly ahead of the expectations it had shared during the third quarter call.
London said profitability in the Medicaid segment improved during the period. She also noted that the Marketplace and Medicare businesses performed in line with or slightly better than expectations for the quarter. She added that enrollment results for 2026 created a strong foundation to support earnings growth in the year ahead.
Looking forward, London said the company expects full-year 2026 adjusted EPS to exceed $3. She noted that this would represent more than 40% year-over-year growth. She described the outlook as an important step in rebuilding the company’s underlying earnings strength. She explained that the forecast assumes stable Medicaid margins. It also reflects meaningful margin recovery in the Marketplace segment and continued progress toward breakeven in Medicare Advantage.
Centene Corporation (NYSE:CNC) is a healthcare company that provides integrated services to government-sponsored and commercial healthcare programs. Its focus is on underinsured and uninsured individuals. The company operates through Medicaid, Medicare, Commercial, and Other segments.
