4 High-Growth GARP Stocks With Discounted PEG Ratios for 2026

In the equity market, investments need to be prudently hedged to overcome uncertainties and limit losses related to external shocks. A question that often arises is whether one should resort to a value strategy that seeks discounted stocks or opt for growth investing in times of extreme market instability.

The investing track of the Oracle of Omaha over the past few decades and his gradual shift from being a pure-play value investor to a GARP (growth at a reasonable price) investor might give us all the answers.

Per the GARP theory, the strategic mingling of growth and value-investing principles gives us a hybrid strategy, offering an ideal investment by utilizing the best features of both. What GARPers look for is whether or not the stocks are somewhat undervalued and have solid, sustainable growth potential (Investopedia).

Several stocks that have surged significantly in recent years have demonstrated the overwhelming success of this hybrid investing strategy over pure-play value and growth investments. Here, we will discuss the success of four such stocks. These are Enersys ENS, Globus Medical GMED, DoubleVerify Holdings DV and Match Group MTCH.

A Few More Words on GARP

GARP investing gives priority to one of the popular value metrics, the price/earnings growth (PEG) ratio. Although it is categorized under value investing, this strategy follows the principles of both growth and value investing.

The PEG ratio is defined as (Price/ Earnings)/Earnings Growth Rate

It relates the stocks’ P/E ratios to the future earnings growth rates.

While P/E alone gives an idea of stocks that are trading at a discount, PEG, while adding the growth element to it, helps identify stocks with solid future potential.

A lower PEG ratio, preferably less than 1, is always better for GARP investors.

For example, if a stock's P/E ratio is 10 and the expected long-term growth rate is 15%, the company's PEG will come down to 0.66, a ratio indicating both undervaluation and future growth potential.

Unfortunately, this ratio is often neglected due to investors' limitations in calculating the future earnings growth rate of a stock.

There are some drawbacks to using the PEG ratio, though. It does not consider the very common situation of changing growth rates, such as the forecast of the first three years at a very high growth rate, followed by a sustainable but lower growth rate over the long term.

Hence, PEG-based investing can be even more rewarding if some other relevant parameters are also taken into consideration.

Here are the screening criteria for a winning strategy:

PEG Ratio Less Than X Industry Median

P/E Ratio (using F1) less than X Industry Median (For more accurate valuation purposes)

Zacks Rank of 1 (Strong Buy) or 2 (Buy) (Whether good market conditions or bad, stocks with a Zacks Rank #1 or #2 have a proven history of success.)

Market Capitalization greater than $1 Billion (This helps us to focus on companies that have strong liquidity.)

Average 20-Day Volume greater than 50,000: A substantial trading volume ensures that the stock is easily tradable.

Percentage Change F1 Earnings Estimate Revisions (4 Weeks) greater than 5%: Upward estimate revisions add to the optimism, suggesting further bullishness.

Value Score of less than or equal to B: Our research shows that stocks with a Value Style Score of A or B, when combined with a Zacks Rank #1, 2 or 3 (Hold), offer the best upside potential.

Growth Score of less than or equal to B: Our research shows that stocks with a Growth Style Score of A or B, when combined with a Zacks Rank #1, 2 or 3, offer the best upside potential.

Our PEG-Driven Picks

Here are four stocks that qualified the screening:

Enersys: Headquartered in Pennsylvania, EnerSys manufactures and distributes industrial batteries, chargers, power equipment and related accessories across more than 100 countries. Its three segments, Energy Systems, Motive Power and Specialty, serve telecommunications, material handling, industrial, transportation, military and other critical applications.

ENS can be an impressive GARP investment pick with its Zacks Rank #2, a Value Score of B and a Growth Score of A. Apart from a discounted PEG and P/E, the stock has an impressive long-term expected growth rate of 15%.

Globus Medical: Audubon, PA-based Globus Medical develops and commercializes medical devices and healthcare solutions for patients with musculoskeletal disorders, selling through direct representatives and independent distributors across 65 countries. Its portfolio includes more than 209 products featuring differentiated technologies designed to treat various conditions affecting the spine, extremities and pelvis.

GMED sports a Zacks Rank #1 at present, along with a Value Score of B and a Growth Style Score of A. Globus Medical also has an impressive five-year historical growth rate of 18.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.

DoubleVerify: New York City-based DoubleVerify provides AI-powered digital media measurement, advertising verification and campaign optimization solutions, helping advertisers assess fraud, brand suitability, viewability, geography and campaign effectiveness. Serving more than 2,500 customers across diverse industries, the company generated $748.3 million in 2025 revenues, up 14% year over year, with operations spanning the Americas, EMEA and APAC.

DoubleVerify stock can be an impressive GARP investment pick with its Zacks Rank #2, a Value Score of B and a Growth Score of A. Apart from a discounted PEG and P/E, DV has an impressive long-term historical growth rate of 15.7%.

Match Group: Dallas, TX-based Match Group operates more than 45 dating brands, including Tinder, Hinge, Match, Meetic, OkCupid and Plenty of Fish, serving users in 190+ countries and 42 languages. Since the second quarter of 2026, it reports three segments — Tinder, Hinge and Everyone Everywhere — generating revenues primarily from subscriptions, à la carte purchases and advertising across diverse user communities.

MTCH can also be an impressive GARP investment pick with its Zacks Rank #1, a Value Score of A and a Growth Score of B. Apart from a discounted PEG and P/E, the stock also has a solid long-term expected growth rate of 20.7%.

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This article originally published on Zacks Investment Research (zacks.com).

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