GARP
Business & Finance abbreviation · Stock Market & Investing
| Stands for | Growth at a reasonable price |
|---|---|
| Categories | Business & Finance |
GARP stands for Growth at a reasonable price, a stock market & investing abbreviation.
Stock-picking style that seeks companies with consistent earnings growth whose shares are not excessively expensive, blending growth and value investing. GARP investors often use the PEG ratio as a screen.
Example: The GARP fund avoids both deep-value turnarounds and high-flying stocks trading at 80 times earnings.
Usage notes
Peter Lynch, who managed the Fidelity Magellan Fund from 1977 to 1990, is the best-known practitioner. Typical GARP screens look for PEG ratios near or below 1 and steady revenue growth. Pronounced as the word "garp."
Related abbreviations
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