AlphaScreens: GARP serving up strong leads

AlphaScreens: GARP serving up strong leads

Some companies score well on our growth at the right price (GARP) screen, despite being in sectors that face challenges. Possibly they are still not rated expensive by our screen because their share prices are tempered by nervousness about headwinds faced by other firms in the same or similar industries. When evaluating the results of mechanical screens, it’s good to apply qualitative analysis alongside empirical evidence and think why a company which a screen has highlighted may (or may not) have potential to outperform. In other words, are there reasons the growth side of the GARP calculation may come unstuck?

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