4 Mid Cap Growth at Reasonable Price Stocks – Feb 2025

Ultimately GARP amounts to a measure of quality that you can buy at a good price. As Buffett is fond of saying, try to buy wonderful businesses selling at a good price. This Growth at Reasonable Price screen considers the 5 year sales growth, operating income growth and earnings growth and filters for companies that are expected to continue growing earnings in the next year. Additionally, it limits the stock universe to those who meet a reasonably strong valuation criteria based on earnings yield and PEG ratio.

This is a quick way to filter for quality and profitability. You are not really checking for a sustainable competitive advantage at this point, but once you dig deeper, many of these stocks may end up exhibiting some moat.

Here are the main screening criteria:

• 5 year EPS growth > 15%
• Next year EPS growth > 15%
• 5 year Operating Income growth > 15%
• 5 year Sales growth > 8%
• Earnings Yield > 5
• PEG ratio < 1.2, both forward and trailing
• Is a mid cap, meaning the market cap is between $2 B and $5 B

Additionally we require a US listing.

These 4 stocks all come from different sectors and industries such as utilities, banks, energy and commodity. They are all available at great valuations today because of a temporary discounting of the stock price, as as the earnings growth materializes for the next year, likely the stock price will appreciate.

If any of these stocks sound interesting to you, please do your own research before you buy or sell these stocks. I will review these stocks and add them to the watchlist for deeper review. Once I complete the reviews, I will make it available on the website in the shop for purchase (or you can subscribe to my Premium service on Substack to be automatically sent these reviews to you as soon as they are available at no additional charge.)