As the second half starts next week, undervalued stocks present growth opportunities

At Extreme Investor Network, we understand the challenges investors face when trying to find growth stocks that are priced reasonably. With the S & P 500 up 15% in the first half of the year and near all-time highs, adjusting your portfolio strategy may be crucial for success in the second half of the year.

One strategy to consider is GARP investing, which combines elements of both value and growth investing. This approach looks for companies with expanding bottom lines that are not overly priced. CNBC Pro recently screened for stocks in the S & P 500 that fit the GARP approach, identifying companies with 12-month earnings per share growth of 15% or more, 12-month revenue growth of 15% or more, and a forward price-earnings ratio below the S & P 500’s 22.6 multiple.

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Among the GARP candidates identified, Royal Caribbean Group stood out with a 24% rally this year. With positive analyst sentiment from Citigroup and JPMorgan, the cruise operator is seen as well-positioned for market share gains. First Solar, a photovoltaic solar panel maker, also made the list with a 45% rally and bullish ratings from multiple investment banks. Emerson Electric, an electric company with an 11% year-to-date rally, was highlighted as well, with a catalyst call from Deutsche Bank ahead of its upcoming earnings report.

If you’re looking for growth stocks at a reasonable valuation, GARP investing could be a strategy to consider. Stay updated with the latest investment opportunities and market trends by visiting Extreme Investor Network for more valuable insights.

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