Growth at a reasonable price (GARP) may be an overlooked multi-factor investment strategy, but this combination of growth and value factors is nonetheless compelling. GARP stocks can be at a disadvantage during periods when a strong bull run rewards the most growth-oriented stocks, regardless of their valuations. However, during economic transition periods when high-growth names lose momentum, GARP names can offer a healthy balance of return potential and value.
Applied Materials Inc. (NASDAQ: AMAT), Progressive Corp. (NYSE: PGR), and PulteGroup, Inc. (NYSE: PHM) are all defensible GARP stocks for the second half of 2026, but for a variety of different reasons. As such, they may each appeal to investors seeking a different balance of value and growth characteristics—or an investment in all three could provide diversification across not only industries and sectors, but also fundamental strengths.
