BALTIMORE ( Stockpickr) -- Have you been "going GARP" in this market?
Don't let the less-than-catchy name fool you. GARP, which stands for "growth at a reasonable price," is one of the most attractive strategies in most investors' playbooks right now. The GARP approach combines the two major fundamental schools of thought: growth investing and value investing. The goal is to spot stocks that can achieve significant growth but still have a fundamental backstop in their current balance sheet or earnings numbers.
To be clear, the GARP approach isn't about looking for a bargain. High-P/E stocks aren't off limits to a GARP investor as long as those higher earnings multiples are justified by hefty growth rates.GARP really shines in markets like the one we're in now. With stock prices climbing steadily higher, growth stocks are enjoying a full-blown rally this spring. Keeping a value component to your stock picking ensures that you can grab onto the market's highest-momentum names without nearly as much risk to the downside in the buying sputters out. That's why today we're taking a closer look at four GARP names that sport double-digit annual revenue growth rates without breaking the value rules. Here's why these four stocks are worth buying this summer. >>5 Stocks the Smart Money Hates -- But Should You?