AZ - Jefferies names 18 cheap stocks to play a GARP comeback

Stocks that offer Growth at a Reasonable Price have had a rough Q2, lagging by one of their biggest margins even, Jefferies says. GARP is "defined by FY1 P/E divided by the long-term forecasted growth rate, strategist Steven DeSanctis wrote in a note. "We prefer the Q2 basket over the cheapest, as it has had solid performance over time with its annual return coming in at 13.4%. However, YTD this group is down 24.4% and to put the weakness into perspective, the rolling 12-month spread stands at -2.3% and is in the 3rd percentile." "The last time this factor was this bad was in March '20, and prior to that '18. Over its history, this factor has been in the red less than 14% of the rolling 12-month periods we have data on, and we think the factor is due to snap back." "If we are right and GARP does

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Jefferies names 18 cheap stocks to play a GARP comeback