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2 Stocks to Buy for Growth Without Overpaying

2 Stocks to Buy for Growth Without Overpaying

Morningstar, Inc.
Analyzed Watch on YouTube Requested On
Video return
-21.12%
Calls
2
Buy / Sell
2 0
Published

Recommendations

Entry is the asset's closing price on the publication date. Current is the last close on record.

  1. 01 ONON NYSE BUY -29.69%
    Entry $38.19 05 Aug 2026
    Current $26.85 10 Sep 2026
    Result −$11.34
    vs. index −28.7% SPY −1.0% over the same days

    Cite this call Watch source video * †

    Surrounding source transcript
    …arnings growth rate. Companies with PEG ratios below one can be good GARP candidates. Dave's GARP stock picks were Nvidia, Broadcom, LPL Financial, T-Mobile, and CNH Industrial. Today, we're focusing on two more good GARP stock candidates. Our first GARP stock to buy is on holding. An has been the fastest growing sportsware company in the world since the pandemic and is best known for its running shoes. We think the company has carved out a narrow economic moat based on brand and tangible asset. We project 17% sales …

    Our first GARP stock to buy is on holding.

    AI-extracted context “Our first GARP stock to buy is on holding. An has been the fastest growing sportsware company in the world since the pandemic and is best known for its running shoes.”

  2. 02 CHWY NYSE BUY -12.28%
    Entry $24.03 05 Aug 2026
    Current $21.08 10 Sep 2026
    Result −$2.95
    vs. index −11.3% SPY −1.0% over the same days

    Cite this call Watch source video * †

    Surrounding source transcript
    …ny has carved out a narrow economic moat based on brand and tangible asset. We project 17% sales growth in 2026 and over the next decade we forecast a total compound average annual sales growth rate of 11%. We think the stock is worth $48. Our second GARP stock to own is Chewy. Chewy is a leading e-commerce retailer of pet food, toys, supplies, and medication. The company's leveraging its leading online pet retail offering to construct a wide-ranging integrated pet care ecosystem. We think Chewy has carved out a …

    Our second GARP stock to own is Chewy.

    AI-extracted context “Our second GARP stock to own is Chewy. Chewy is a leading e-commerce retailer of pet food, toys, supplies, and medication.”

Full Transcript
Hi, I'm Susan Chabinsky, co-host of the Morning Filter podcast. On a recent episode, Morning Star's chief US market strategist Dave Sakara talked about GARP investing. GARP stands for growth at a reasonable price. Rather than buying the fastest growing companies regardless of their stock valuations, GARP investors look for businesses that are growing at a healthy clip, but whose stock prices look reasonable. How can investors find GARP stocks to buy? Look to PEG ratios. The PEG ratio compares a company's PE ratio to its expected earnings growth rate. Companies with PEG ratios below one can be good GARP candidates. Dave's GARP stock picks were Nvidia, Broadcom, LPL Financial, T-Mobile, and CNH Industrial. Today, we're focusing on two more good GARP stock candidates. Our first GARP stock to buy is on holding. An has been the fastest growing sportsware company in the world since the pandemic and is best known for its running shoes. We think the company has carved out a narrow economic moat based on brand and tangible asset. We project 17% sales growth in 2026 and over the next decade we forecast a total compound average annual sales growth rate of 11%. We think the stock is worth $48. Our second GARP stock to own is Chewy. Chewy is a leading e-commerce retailer of pet food, toys, supplies, and medication. The company's leveraging its leading online pet retail offering to construct a wide-ranging integrated pet care ecosystem. We think Chewy has carved out a narrow economic moat underpinned by intangible assets. We're forecasting revenue to compound at a 6.5% annual growth rate over the next decade. We think Chewy stock is worth $32. For more stock ideas, be sure to tune in to the Morning Filter wherever you get your podcasts and visit morningstar.com, too.

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