The world according to GARP
Not the 1982 Robin Williams film but Growth at A Reasonable Price, the methodology devised by investment guru Jim Slater, has long been a reliable strategy for picking stocks that can outperform. Our GARP screen has thrown up three very different stocks, each beating positive paths through their respective end markets. A reasonable price does not always mean a low PE or EV/Ebitda if the fundamentals are strong, re-orientation or reinvention can augment the market drivers, large distributions can be foreseen, risk is very well-contained or the ESG case is very positive. Our three picks all have a strong investment backstory, but strong recent share price rallies have consumed much of the near-term value or sought to overlook risk.