AMAT, PGR, PHM Stocks: 3 GARP Picks for the Second Half of 2026

Growth at a reasonable price (GARP) may be an overlooked multi-factor investment strategy, but this combination of growth and value factors is nonetheless compelling. GARP stocks can be at a disadvantage during periods when a strong bull run rewards the most growth-oriented stocks, regardless of their valuations. However, during economic transition periods when high-growth names lose momentum, GARP names can offer a healthy balance of return potential and value.

Applied Materials Inc. NASDAQ: AMAT, Progressive Corp. NYSE: PGR, and PulteGroup, Inc. NYSE: PHM are all defensible GARP stocks for the second half of 2026, but for a variety of different reasons. As such, they may each appeal to investors seeking a different balance of value and growth characteristics—or an investment in all three could provide diversification across not only industries and sectors, but also fundamental strengths.

Applied Materials’ Massive Growth Prospects May Outweigh Its Not-So-Cheap Valuation

Applied Materials has been in a comfortable growth position in recent quarters thanks to massive spending on AI chips. This company doesn’t make chips; however, it is not in direct competition with major semiconductor names like NVIDIA Corp. NASDAQ: NVDA—rather, it sells the equipment and software needed to build them, making it a key pick-and-shovel play.

The company’s latest quarter brought record performance across multiple metrics: revenue climbed by 25% year over year (YOY), non-GAAP earnings per share (EPS) reached $3.50, ahead of estimates, and management raised guidance. Analysts see 43% in earnings growth for Applied Materials in the coming year, as the stock enjoys strong bullish support across Wall Street.

With EPS growth well above the market average, compelling free cash flow as part of a strengthening balance sheet, and a solid recent history of share repurchases, Applied Materials checks many boxes for GARP investors, although its valuation is not as competitive as that of some other companies investors might consider. Trading at more than 41x earnings, Applied Materials is not “cheap,” but it is arguably reasonably priced given its massive growth expectation. Of course, investors making a bet on AMAT are also wagering that AI hardware demand will stay strong in the coming quarters—or that the company’s pick-and-shovel status will insulate it from some turbulence as it comes.

Progressive Grows on Multiple Fronts

Insurance companies may not be the most natural growth stock candidates, but Progressive may be bucking the trend by continually taking market share through its superior underwriting, pricing discipline, and innovative telematics approach. What’s more, it has been able to grow while also maintaining underwriting profitability over sustained periods.

Major growth in the company’s policies in force has led Progressive to top 40 million for the first time in the latest quarter, despite increased competition and elevated shopping activity. At the same time, as the company moves most of its eligible insurance entities to a 3.5x premium-to-surplus ratio by the end of this year, it should have greater capital flexibility, which it can then use to fund more underwriting growth and, potentially, dividends or share buybacks.

While Progressive’s valuation is unlikely to be considered “cheap,” its sustainable, compounding growth makes it a compelling option. Nonetheless, investors might want to watch for a potential slowdown in pricing or investment income, or changes in catastrophe losses—all of which could impact the company’s competitiveness.

A Different Value/Growth Trade-Off, But in a Turbulent Industry

PulteGroup may be the most controversial GARP candidate on this list. On one hand, homebuilders like this one can generate impressive cash flow. Pulte’s strong balance sheet, high return on equity (ROE), and history of aggressive buybacks make it a compelling option even if housing demand isn’t booming. At the same time, housing is highly dependent on mortgage rates, affordability, employment trends, and other metrics that could all be worsening for the industry.

This company’s valuation is likely more competitive than the two firms above, but it may sacrifice some of its growth potential as a trade-off. At the same time, an investment in a homebuilder is a contrarian move for many at this stage—but Wall Street is generally very optimistic about PHM shares, based on 13 Buy ratings compared to only five Holds and a recent spate of upgradings and bullish reiterations.

Pulte’s significant reliance on the macro housing market may make it an attractive choice only for investors expecting that this market will either remain static or potentially improve, which may be a tall order. As a value-with-some-growth potential option, though, and in the right housing scenario, Pulte could outperform expectations.

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