Investing in growth companies profitable with Aptiv, Allstate, Barrick showing strong growth potential

From Nasdaq: 2024-11-14 10:50:00

Investing in growth companies has been profitable, with growth stocks outperforming value stocks since 2009. The idea of growth at a reasonable price (GARP) involves finding undervalued stocks based on metrics like the PEG ratio, P/E ratio, ROE, and projected earnings growth.

Aptiv, a maker of automotive components, shows strong upside potential. Despite a three-year stock slide, it is undervalued with a low forward P/E ratio, high earnings growth projections, and a PEG ratio of 0.6. Analysts see a 40% upside with some concerns about its high debt.

Allstate Insurance is considered a GARP stock with projected earnings growth exceeding its low forward P/E ratio. Analysts predict increased profitability in the non-life US insurance industry due to declining combined ratios and slowing inflation impacting claims costs.

Barrick Gold, traditionally not a GARP stock, is now showing potential due to rising gold prices. With strong earnings growth projections, low forward P/E ratio, and improved production at key facilities, analysts forecast a 42% upside in the stock. Gold futures are up 25% in 2024, boosting the company’s prospects.



Read more at Nasdaq:: 3 GARP Stocks Offering Strong Growth: Aptiv, Allstate, Barrick