Historically, GARP stocks (Growth at a Reasonable Price) traded at a premium to the broader market, while cyclical industrials often traded at a discount. Today, that relationship has largely flipped. Quality growth companies are out of favor and trading at discounts, while many cyclicals tied to the AI buildout command premium valuations.
Large Cap Portfolio Manager Joe Maginot joined BNN Bloomberg to discuss why this GARP is cheap, how many high-quality, “asset light” companies have been swept up in an indiscriminate selloff, and why investors should tread carefully when evaluating today’s semiconductor and memory stock valuations.