Stocks such as Oracle and Micron Technology are among several growth plays left in a market that recently soared to records. The S & P 500 has reached new highs heading into 2025, leaving the broad market index expensive according to some Wall Street firms. Wells Fargo, for instance, recently said the S & P 500 is trading at a historically expensive price-to-earnings ratio of 22.3, and even last month , Bank of America said the index is “statistically expensive on almost every metric.” Yet, there are still fairly priced stocks left in the market. Using FactSet, we found several companies that are considered to offer ” growth at a reasonable price ,” or GARP. These stocks have strong growth prospects and are trading at an attractive valuation relative to their peer group, offering an alternative lens through which to look for buying opportunities, beyond simple growth and value screens. The stocks below are forecast to post earnings per share and sales growth of more than 10% over the next 12 months and are trading at a discount to their S & P sector. Several semiconductor makers — including Micron Technology, Advanced Micro Devices and Broadcom — are forecast to see strong growth levels next year, according to the screen. AMD shares have been battered this year, losing 7.6% this month alone and sliding roughly 14% year to date. The stock was downgraded by Bank of America on Dec. 9 to neutral from buy on concerns of potential market share losses driven by hyperscalers’ preference for Nvidia and other semiconductor makers. But analysts surveyed by FactSet expect a turnaround, seeing about 50% and 26% earnings per share and sales growth over the next year, respectively. Broadcom has recently been on a tear but still offers a reasonable valuation. The company saw its market cap soar beyond $1 trillion for the first time on Friday after reporting strong fourth-quarter results reflecting rapid revenue growth due to artificial intelligence demand. Goldman Sachs analysts raised their price target on Broadcom on Monday, saying they have “higher conviction” on the company’s forward revenue and earnings growth outlook and continue to view it as “one of the key enablers” of generative AI. AVGO YTD mountain Broadcom performance this year. Investor sentiment also remains positive on Micron. The stock, up nearly 27% this year, jumped 5.6% on Monday ahead of its quarterly earnings due later this week. According to FactSet, Micron has the highest expected earnings per share growth over the next 12 months at nearly 598%. Teradyne , another semiconductor play, also turned up on the screen. JPMorgan analyst Samik Chatterjee on Tuesday upgraded the stock to overweight from neutral and lifted his price target by $13 to $158, suggesting 22% potential upside. Its shares are up about 19% this year. “This growth is anticipated to be driven by a recovery in smartphone units, increased adoption of leading-edge nodes, and rapid expansion in the VIP ASIC market. … In the context of shares trading at a relatively low multiple compared to historical averages, we see significant room for appreciation,” Chatterjee wrote. Other GARP stocks include software maker Adobe , Taco Bell owner Yum! Brands and cloud company Oracle . Adobe last week saw its sharpest stock decline in more than two years after its latest revenue guidance fell short of analysts’ estimates.
