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.
12. Humana Inc. (NYSE:HUM)
On February 25, Barclays lowered its price recommendation on Humana Inc. (NYSE:HUM) to $176 from $245. The firm reiterated an Equal Weight rating on the shares. It said it is “incrementally cautious” about the company’s expectation that Individual Medicare Advantage margins will double.
A February 14 Bloomberg report said Humana acquired Florida-based clinic operator MaxHealth. The company plans to integrate MaxHealth into its CenterWell Senior Primary Care division. This move expands Humana’s footprint in primary care for seniors. Financial terms were not disclosed. Reports suggested the deal was valued at around $1 billion.
MaxHealth operates more than 80 clinics across West and South Florida. It serves over 120,000 patients. The acquisition supports Humana’s broader effort to expand its primary care network. This comes at a time when its Medicare Advantage business faces pressure from rising care costs and tighter government reimbursement rates.
Humana Inc. (NYSE:HUM) provides insurance services and healthcare services through its CenterWell platform. The company operates through two main segments: Insurance and CenterWell.
11. The Carlyle Group Inc. (NASDAQ:CG)
On February 24, BofA raised its price recommendation on The Carlyle Group Inc. (NASDAQ:CG) to $54 from $52. It reiterated an Underperform rating on the shares. The firm said it is updating EPS estimates for several brokers, asset managers, and exchanges it covers following their recent earnings reports.
A February 10 Reuters report said Carlyle plans to invest 21 billion rupees ($232 million) in the housing finance arm of India’s Edelweiss Financial. The deal includes acquiring a 45% stake and injecting 15 billion rupees in fresh equity into the unit, Nido Home Finance. After the transaction, investment funds linked to Carlyle Asia Partners are expected to hold about 73% of Nido. The company manages assets totaling 48.04 billion rupees.
This move places Carlyle alongside other global investors such as Blackstone and Sumitomo Mitsui Financial Group, which are also expanding into India’s growing housing finance market. It also reflects Carlyle’s continued involvement in India’s financial sector. Last year, the firm exited its long-standing investments in PNB Housing Finance and Yes Bank.
The Carlyle Group Inc. (NASDAQ:CG) is a global investment firm. It operates through three main segments: Global Private Equity, Global Credit, and Carlyle AlpInvest.
10. Blackstone Inc. (NYSE:BX)
On February 24, RBC Capital analyst Bart Dziarski initiated coverage of Blackstone Inc. (NYSE:BX) with an Outperform rating and a $179 price target. He told investors that Blackstone has a “first-mover advantage” as the first alternatives firm to launch a private wealth team. The analyst added that the company is well-positioned to benefit from long-term retail investor growth. He also pointed to an improving real estate cycle, which is starting to gain momentum and could support future performance.
On February 17, Blackstone announced that funds managed by its perpetual private equity strategy, BXPE, entered into a definitive agreement to acquire Champions Group from Odyssey Investment Partners, LLC. Odyssey and the company’s management will retain a significant minority stake alongside Blackstone. Champions Group provides essential home services focused on residential repair and replacement. The company operates an integrated platform across major metropolitan areas. It employs more than 1,800 field technicians and serves over 150,000 active members.
Its business model centers on membership-based services. The company has built its position by maintaining long-term customer relationships and focusing on consistent service delivery.
Blackstone Inc. (NYSE:BX) is an alternative asset manager with global investment strategies. Its platform spans real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries, and hedge funds.
9. KeyCorp (NYSE:KEY)
On February 24, Baird upgraded KeyCorp (NYSE:KEY) to Neutral from Underperform and kept its price target at $19. The firm said the upgrade reflects valuation following the previous day’s selloff. Regional bank stocks declined amid concerns tied to AI. The analyst noted that fears intensified after a blog post published over the weekend. Baird said the scenarios described in the post, including 11% unemployment and possible credit stress tied to a weaker US consumer, “seem excessive.”
The firm pointed out that KeyCorp shares trade at about 1.5-times tangible book value. At that level, it sees a “generally balanced risk/reward trade-off.” Baird also said banks are more likely to benefit from AI over time rather than face “meaningful disruption.”
During the Q4 2025 earnings call, Chairman, President, and CEO Christopher Gorman reported earnings of $0.43 per share. He said revenue exceeded $2 billion and increased 12% year-over-year on an adjusted basis. Expenses rose by just 2%. He also noted that both net interest margin and net interest income came in above the company’s earlier targets. Gorman pointed to improving asset quality during the quarter. He highlighted declines in net charge-offs, nonperforming assets, criticized loans, and delinquencies.
He said the company repurchased $200 million of common stock during the period. This was twice the original plan. He added that KeyCorp plans to accelerate buybacks, with at least $300 million in repurchases expected in the first quarter of 2026 and similar levels planned throughout the year. He described 2025 as a year of meaningful progress and said the company met or exceeded all previously stated financial goals.
On the strategic side, Gorman said the company expanded its frontline banker workforce by nearly 10%. This included hiring across wealth management, commercial payments, middle market banking, and investment banking. He also said the company invested an additional $100 million in technology, focusing on tools designed to improve customer experience.
He noted the launch of a mass affluent wealth platform. Since 2023, the platform has added 54,000 new households. Gorman also announced the nomination of two new board members, Tony DeSpirito and Chris Henson. He said there would be a leadership change in the lead independent director role, with Sandy Cutler stepping down and Todd Vasos assuming the position.
KeyCorp (NYSE:KEY) is a bank-based financial services company. It operates through its primary subsidiary, KeyBank National Association.
8. Omnicom Group Inc. (NYSE:OMC)
On February 23, Barclays raised its price recommendation on Omnicom Group Inc. (NYSE:OMC) to $90 from $82. The firm maintained an Equal Weight rating on the shares. It said the company’s Q4 results came in largely in line with expectations.
During the Q4 2025 earnings call, Chairman and CEO John Wren discussed plans to divest or exit noncore and underperforming businesses. These operations generate about $2.5 billion in annual revenue. He said the company had already completed asset sales totaling more than $800 million. It also moved to minority ownership positions in certain smaller markets, which represent about $700 million in revenue.
Wren said the company increased its expected annual run-rate synergies. It now projects $1.5 billion in synergies over the next 30 months. This is double the initial estimate of $750 million. He added that $900 million of these savings is expected to be realized in 2026. He also announced a $5 billion share repurchase authorization. The company has already begun an accelerated buyback program valued at $2.5 billion.
Omnicom Group Inc. (NYSE:OMC) provides marketing and sales solutions to clients worldwide. Its services include advertising, media planning and buying, precision marketing, retail and digital commerce, branding, experiential marketing, public relations, healthcare marketing, and other specialized services. The company serves more than 5,000 clients across over 70 countries.
7. Workday, Inc. (NASDAQ:WDAY)
On February 25, Baird analyst Mark Marcon lowered the price target on Workday, Inc. (NASDAQ:WDAY) to $190 from $195 and maintained an Outperform rating on the shares. The firm updated its model following the company’s Q4 results, which included reduced guidance for 2027.
On February 25, Workday issued a softer sales forecast. This raised concerns among investors about the company’s ability to remain competitive as AI adoption accelerates. The stock fell 8.3% in early trading and dropped to its lowest level in more than five years.
The decline added to a broader selloff. Shares were already down about 40% this year. Investors reacted to fears that artificial intelligence tools developed by companies such as Anthropic could reduce demand for traditional software products. The recent performance has made Workday one of the weakest-performing U.S. software stocks this year. CEO and co-founder Aneel Bhusri addressed these concerns during the post-earnings call. He emphasized the company’s ongoing investments in AI.
He told analysts, “Just for what it is worth, Anthropic, Google and OpenAI all run Workday.” Bhusri recently returned as chief executive this month after stepping down as co-CEO in 2024. The company also said some large deals were taking longer to close. This was particularly true in government and healthcare, where sales cycles tend to move more slowly.
Workday, Inc. (NASDAQ:WDAY) provides an artificial intelligence platform designed to help organizations manage their workforce, finances, and digital agents. The company serves more than 11,000 organizations with cloud-based solutions that use AI to support daily operations and address complex business challenges.
6. United Airlines Holdings, Inc. (NASDAQ:UAL)
On February 19, Jefferies analyst Sheila Kahyaoglu lowered the price recommendation on United Airlines Holdings, Inc. (NASDAQ:UAL) to $148 from $154. The analyst reiterated a Buy rating on the shares. After reviewing the company’s 10-K filing, the firm said first-quarter performance appears to be tracking toward the high end of its adjusted EPS guidance range of $1.00 to $1.50. The analyst pointed to strong travel demand, including economy class. At the same time, Jefferies reduced its full-year 2025 EPS estimate to $13.65 to reflect higher expected fuel costs.
In late January, United announced its largest-ever summer schedule at Chicago O’Hare International Airport. The expansion marks a deeper push in its competition with American Airlines for airport gates and higher-paying passengers in Chicago. United said it plans to operate a record 750 daily departures from O’Hare during the summer season. This represents an increase of nearly 170 flights compared with the prior year. The move came shortly after CEO Scott Kirby said the airline would add “as many flights as are required” to prevent American from gaining more gates at United’s expense in 2026.
The airline also said it plans to offer nonstop service from O’Hare to 222 destinations in 2026. This includes 47 international cities and 175 cities across the United States. The additions cover a mix of business routes and leisure destinations. The expansion reflects United’s broader strategy to strengthen its presence in the Midwest, including Illinois, Michigan, and Wisconsin. It also supports its position in key coastal and business markets such as Boston, Nashville, Los Angeles, San Francisco, and Dallas.
United Airlines Holdings, Inc. (NASDAQ:UAL) is a holding company that provides air transportation services. The company carries passengers and cargo across North America and to destinations in Asia, Europe, Africa, the Pacific, the Middle East, and Latin America.
5. MercadoLibre, Inc. (NASDAQ:MELI)
On February 25, Wedbush analyst Scott Devitt lowered the price recommendation on MercadoLibre, Inc. (NASDAQ:MELI) to $2,400 from $2,600. The analyst reiterated an Outperform rating on the shares. The firm said the company reported mixed results compared with expectations. Wedbush noted that ongoing spending will likely continue to weigh on the stock. It also said operating income upside may remain limited in the near term as the company moves through its current investment cycle.
During the Q4 2025 earnings call, CEO and President Ariel Szarfsztejn pointed to strong commerce momentum in Brazil and Mexico. He said both markets delivered 35% growth in gross merchandise volume. He added that the number of items sold in Brazil increased by 45%, driven by targeted investments, including efforts to lower the free shipping threshold. He also highlighted the growing role of artificial intelligence across the platform. He said the company’s value proposition continued to strengthen in Mexico, where GMV also rose by 35%. He added that AI investments were clearly helping accelerate overall revenue growth.
CFO Martin de Los Santos said the company’s focus on improving customer experience supported its financial performance. Net revenues increased 45% year-over-year in the fourth quarter. He also noted strong growth in the advertising business, where AI-driven improvements contributed to 67% growth. He pointed to continued strength in the fintech segment. Monthly active users have grown at nearly 30% for ten consecutive quarters. He added that the credit portfolio nearly doubled from the prior year, reaching $12.5 billion. The company also issued almost 3 million new credit cards during the fourth quarter alone.
MercadoLibre, Inc. (NASDAQ:MELI) is a Uruguay-based e-commerce company with roots in Argentina. Its platform enables retail and wholesale transactions through online marketplaces and provides tools and services designed to help users complete and manage commercial transactions.
4. Bank of Montreal (NYSE:BMO)
On February 26, National Bank analyst Gabriel Dechaine raised the price recommendation on Bank of Montreal (NYSE:BMO) to C$205 from C$186. The analyst reiterated a Sector Perform rating on the shares.
On February 25, the bank reported first-quarter profit that exceeded analyst expectations. The results were supported by lower provisions for potential loan defaults. BMO also reported record revenue across all of its business segments. Growth was driven in part by strong fee income from wealth management and capital markets. Adjusted earnings in those divisions increased by 16% and 11%, respectively.
The bank has also taken steps to strengthen its US operations. It reduced exposure to bad loans to ease pressure on loan loss provisions. It closed some branches following the acquisition of Bank of the West and shifted its loan portfolio toward higher-margin commercial lending. These actions supported performance in the U.S. segment, which reported 13% growth in adjusted net income. In Canada, earnings increased 8% as the bank focused on expanding deposits and growing new lending areas. CEO Darryl White made the following comment:
“By the end of next quarter, we will be effectively complete with our balance sheet optimization efforts and expect to see positive commercial loan growth in the second half of the year, supported by currently strong pipelines. With the U.S. economy expected to outpace Canada for a fourth straight year, and with our business mix, we’re well-positioned to capture growth opportunities as business activity expands.”
BMO reported adjusted profit of C$2.55 billion ($1.86 billion) for the quarter ended January 31. This compares with C$2.29 billion in the prior period. On a per-share basis, adjusted earnings came in at C$3.48, above the analyst estimate of C$3.20.
Bank of Montreal (NYSE:BMO) is a North American financial institution that provides personal and commercial banking, wealth management, global markets, and investment banking products and services.
3. Advanced Micro Devices, Inc. (NASDAQ:AMD)
On February 25, Advanced Micro Devices, Inc. (NASDAQ:AMD) and Nutanix announced a multi-year strategic partnership to develop an open, full-stack AI infrastructure platform. The platform is designed to support agentic AI applications across a wide range of environments. The agreement reflects both companies’ focus on building an open AI ecosystem. Their goal is to give customers flexible and easy-to-deploy solutions that are ready for production. These systems are designed to deliver high performance and efficiency for agentic AI workloads at the edge, within enterprises, and across cloud environments.
As part of the partnership, AMD will invest $150 million in Nutanix common stock. The shares will be purchased at $36.26 per share. AMD also committed up to $100 million to support joint engineering efforts and go-to-market initiatives. These efforts are intended to speed up the adoption of the combined AMD and Nutanix agentic AI platform.
The equity investment is expected to close in the second quarter of 2026. It remains subject to regulatory approvals and standard closing conditions. Dan McNamara, senior vice president and general manager of Compute and Enterprise AI at AMD, made the following comment:
“Enterprise customers need the freedom to run the models and workloads that matter most to their business, without compromise. Through our partnership with Nutanix we’re building a scalable, full-stack AI platform rooted in openness, designed to give enterprises and service providers the flexibility to innovate, extend and grow AI deployments across Enterprises.”
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company focused on high-performance computing, graphics, and visualization technologies. The company operates through its Data Center, Client and Gaming, and Embedded segments.
2. Oracle Corporation (NYSE:ORCL)
On February 25, Oppenheimer upgraded Oracle Corporation (NYSE:ORCL) to Outperform from Perform and set a price target of $185. The firm said the call may be early, as it will take time for Oracle to show financial results from its shift toward a more capital-intensive business model. Oppenheimer noted that the stock’s valuation multiples have fallen by more than half since September. At current levels, the firm sees a favorable risk and reward balance. It also said Oracle remains a strong EPS compounder and is positioned to benefit from AI as sentiment improves and risks become clearer.
On February 1, Oracle said it expects to raise $45 billion to $50 billion in 2026 to expand its cloud infrastructure capacity. The company, chaired by Larry Ellison, plans to use a mix of debt and equity financing to meet this goal. Oracle expects to raise about half of the funding through equity-linked and common equity issuances. This includes mandatory convertible preferred securities and a new at-the-market equity program worth up to $20 billion. The company plans to raise the remaining amount through senior unsecured bond offerings early in 2026.
Investors have closely followed Oracle’s AI infrastructure expansion in recent weeks. The company’s debt levels have increased, and its future growth is becoming more closely tied to OpenAI. OpenAI is not profitable and has not provided details on how it plans to fund its infrastructure expansion.
Oracle Corporation (NYSE:ORCL) provides integrated software applications and secure cloud infrastructure through Oracle Cloud. The company operates across three main segments: cloud and license, hardware, and services.
1. Eli Lilly and Company (NYSE:LLY)
On February 25, RBC Capital initiated coverage of Eli Lilly and Company (NYSE:LLY) with an Outperform rating and a $1,250 price target. The firm said Lilly’s obesity franchise is positioned to dominate the market through 2030. The analyst noted that investor sentiment remains broadly positive. At the same time, there “remains some nervousness on elevated expectations” as the company approaches a $1 trillion market value. RBC added that current consensus estimates “materially undervalue” Lilly’s future growth potential, particularly given what it described as “transformative catalysts on the horizon.”
A recent Reuters report said Lilly’s experimental weight-loss pill, orforglipron, showed stronger effectiveness but also more side effects compared with Novo Nordisk’s oral semaglutide, Rybelsus, in a head-to-head diabetes trial. About 58% of patients taking the 36 mg dose of orforglipron reported mild-to-moderate side effects. This compares with 45% of patients taking the 14 mg dose of Rybelsus. Around 10% of patients taking orforglipron stopped treatment due to side effects, compared with 5% for Rybelsus. The drug was also associated with an increase in pulse rate.
Despite this, orforglipron delivered stronger results in controlling blood sugar and reducing weight. It lowered blood sugar levels by 2.2%, compared with 1.4% for Rybelsus. Patients taking orforglipron lost an average of 8.9 kg, while those on Rybelsus lost about 5 kg. Both treatments work by mimicking the GLP-1 hormone, which helps regulate appetite and blood sugar levels. Lilly said patients may accept the higher rate of side effects because of the greater improvements in blood sugar control and weight loss.
Eli Lilly and Company (NYSE:LLY) is a pharmaceutical company that focuses on discovering, developing, manufacturing, and marketing medicines for human health.
While we acknowledge the potential of LLY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LLY and that has 100x upside potential, check out our report about this cheapest AI stock.
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