Zacks.com featured highlights include Carnival, Micron Technology, Synchrony Financial and Ericsson

For Immediate ReleaseChicago, IL – October 24, 2025 – Stocks in this week’s article areCarnival Corp. CCL, Micron Technology MU, Synchrony Financial SYF and Ericsson ERIC.4 Low-PEG GARP Stocks That Perfectly Balance Growth with Value Over the past few months, the market cacophony has made hybrid investment particularly relevant. While volatility remains elevated amid global policy uncertainty and uneven sectoral growth, the broader earnings picture has strengthened. For example, the blended earnings growth rate for the S&P 500 in the third quarter of 2025 is 13.7%, with 86.9% of companies beating EPS estimates (Zacks Earnings Analysis).Meanwhile, expectations of a gradual shift in Federal Reserve policy toward rate easing have begun to stabilize discount-rate pressure, improving the risk-reward balance for fundamentally strong companies.In this environment, 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 Carnival Corp., Micron Technology, Synchrony Financial and Ericsson.A Few More Words on GARPGARP 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 RateIt 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.Say, 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 four stocks that qualified the screening:Carnival: Headquartered in Miami, FL, the company operates as a cruise and vacation company. As a single economic entity, Carnival Corporation & Carnival plc forms the largest cruise operator in the world. Carnival is the world's leading leisure travel firm and carries nearly half of the global cruise guests. The company operates in North America, Australia, Europe and Asia.CCL stock can be an impressive value investment pick with its Zacks Rank #1 and a Value Score of A. Apart from a discounted PEG and P/E, Carnival also has an impressive long-term historical growth rate of 28.5%.Micron: Idaho-based Micron Technology has established itself as one of the leading worldwide providers of semiconductor memory solutions. Micron's latest quarterly performance underscores its strategic positioning in the rapidly expanding AI-driven memory and storage markets. The positive impact of inventory improvement across multiple end markets is adding to top-line growth.Micron can be an impressive GARP investment pick with its Zacks Rank #1 and a Value Score of B. Apart from a discounted PEG and P/E, the stock has an impressive long-term expected growth rate of 28.5%.You can see the complete list of today's Zacks #1 Rank stocks here.Synchrony Financial: As one of the nation's premier consumer financial services companies, Synchrony Financial offers a wide range of credit products through a diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and health and wellness providers. Synchrony Financial focuses on generating financial flexibility for its customers through offerings like private label credit cards, Dual Card and many more.SYF stock can also be an impressive GARP investment pick with its Zacks Rank #2 and a Value Score of A. Apart from a discounted PEG and P/E, Synchrony Financial has a solid long-term historical growth rate of 13.1%.Ericsson: Headquartered in Stockholm, Sweden, Ericsson is a leading provider of communication networks, telecom services and support solutions. The company is a leader in telecommunications and is now expanding its role into an ICT (Information and Communications Technology) solutions provider.ERIC stock can be an impressive value investment pick with its Zacks Rank #2 and a Value Score of B. Apart from a discounted PEG and P/E, Ericsson also has an impressive long-term expected growth rate of 8.4%.The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.Click here to sign up for a free trial to the Research Wizard today.For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2775755/4-low-peg-garp-stocks-that-perfectly-balance-growth-and-valueDisclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.About Screen of the WeekZacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.Strong Stocks that Should Be in the NewsMany are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. 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Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carnival Corporation (CCL): Free Stock Analysis Report Ericsson (ERIC): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report Synchrony Financial (SYF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks