By Michael Kaye, CFA Companies with the potential for solid earnings growth can be attractive investment candidates. But amid a richly valued stock market, investors may balk at paying above-market price-earnings multiples for those names. That's where this week's screen comes in. S&P's investing methodology features as one of its cornerstones GARP -- growth at a reasonable price.
Taking that as our guide, we looked for companies with promising prospects: growth rate estimates in the top 10% of S&P 500 companies, according to research firm I/B/E/S. Then we took care of the "reasonable price" part by screening for issues with a p-e ratio below that of the S&P 500.
These six names emerged:
GARP, according to S&P
Freeport McMoRan Copper & Gold (FCX)
Big Lots (BLI)
Express Scripts (ESRX)
EOG Resources (EOG)
Kaye is a portfolio services analyst for Standard & Poor's