{"id":3276,"date":"2018-11-05T09:00:28","date_gmt":"2018-11-05T03:30:28","guid":{"rendered":"http:\/\/capitalante.com\/?p=3276"},"modified":"2019-05-11T23:39:19","modified_gmt":"2019-05-11T18:09:19","slug":"how-to-pick-quality-stocks-by-garp-investing-method","status":"publish","type":"post","link":"https:\/\/capitalante.com\/how-to-pick-quality-stocks-by-garp-investing-method\/","title":{"rendered":"How to Pick Quality Stocks by GARP Investing Method"},"content":{"rendered":"

Although there are various factors to pick a quality stock such as fundamental analysis, technical analysis etc. fruitful stock picking strategy is Growth at a Reasonable Price or GARP investing Method. The mechanism works on the principle of picking such stocks whose fundamentals are intact, but undervalued. In this column, we will discuss how to pick quality stocks by GARP investing method.<\/span><\/p>\n

How to pick quality stocks by GARP investing method<\/span><\/strong><\/span><\/h6>\n

In the share market, there are more than 1500 companies or stocks listed. So, to pick such stocks which are capable of giving the better return is quite a difficult task. GARP investing method emphasizes the price to earnings ratio as well as price to book price. Let\u2019s make it clear with an example. You should analyze the compounded sales growth, compounded profit growth, debt ratio. You should find that all the numbers are satisfactory. Now, you need to analyze the P\/E ratio as well as the P\/B ratio. Generally, GARP investors are in search of such companies or stocks which are somewhat undervalued i.e., with a lower valuation. But these companies or stocks hold solid sustainable growth in terms of sales margin or profit growth etc.<\/span><\/p>\n