3 Under-the-Radar GARP Stocks That Could Beat Big Tech

With mega-cap tech names dominating many equities conversations in recent quarters, investors might be seeking an alternative with a bit more breadth. So-called GARP stocks—named because of their potential to provide “growth at a reasonable price”—aim to combine elements of value and growth names in a single investment.

Unlike the dominant tech names that have soared even further in the last year, GARP stocks tend to be more modestly sized, with lower valuations but strong potential for growth across different fundamental metrics. Investors searching for GARP names might start with the three companies below, combining value and growth traits.

Big Growth at a Decent Value for Interactive Brokers

Interactive Brokers Group Inc. (NASDAQ: IBKR) provides brokerage and trading services and products to both retail and professional investors and advisors. With a price-to-earnings (P/E) ratio of 31.22, IBKR falls more on the growth side than the value side for our purposes.

Still, the company offers a competitive P/E ratio compared with the broader market, which sits at 37.72 on average, meaning that IBKR may still appeal to investors keen to get in on its growth potential, particularly in moments in which the stock price dips.

And when it comes to growth potential, IBKR does indeed have a lot to offer. Besides a projected 9% in earnings growth in the coming year and 11% in near-term upside potential, Interactive Brokers achieved a fifth consecutive quarter of more than $1 billion in adjusted pre-tax income for the latest period, with total annual revenues reaching a record above $6 billion for last year.

A lot of this growth is thanks to the company adding about 1 million net new accounts, but it’s also due to larger investments from clients—client equity climbed by 37% year-over-year (YOY) in 2025 to $780 billion. With additional product launches likely to come in 2026, as well as the continued rollout of recent offerings like AI features and expansion into new markets, IBKR could be on track to continue its strong growth trajectory. At the same time, investors will want to keep an eye on interest rates, considering the outsized impact rate changes may have on trading behaviors and, therefore, IBKR stock.

Major Cash Flow and a Dividend Bonus for a Natural Gas Winner

An upstream energy company focused on natural gas, EQT Corp. (NYSE: EQT) may already be a draw for income-focused investors thanks to its dividend yield of 1.08% and rock-solid sub-20% dividend payout ratio.

It supports this giveback to shareholders with a combination of ramping production—in particular, strength in its compression projects and falling well costs—exceptional cash generation, and strategic acquisitions, all at a time when data center energy demand is fueling growth among natural gas producers.

With $2.5 billion in free cash flow in the latest quarter, EQT could boost its stake in strong operational centers like the Mountain Valley Pipeline and funnel $600 million into updating certain compression and water systems to improve operations. With additional cash on hand, EQT can continue to reduce its debt.

The company’s P/E ratio is 18.52, below the average for the energy sector, which is impressive given that shares have risen by nearly 23% in the last year. Its price-to-book ratio (P/B) is also competitive at 1.38. Given that Wall Street expects earnings to climb by a third in the coming year, alongside an additional 8% upside for EQT shares, investors may conclude that the company’s Moderate Buy rating is justified.

TJX Posts Strong Earnings, But Slowdown in Comps Sales Created Momentary Dip Opportunity

TJX Companies Inc. (NYSE: TJX) is an off-price retailer of various apparel and items for the home through shops including T.J. Maxx, Marshalls, and HomeGoods. The company presented a strong Q4 fiscal 2026 earnings report (for the period ending Jan. 31, 2026), including a 16% YOY increase in adjusted earnings per share (EPS), and plans to open about 146 net new stores in the coming fiscal year.

However, shares fell briefly on management’s expectation that comparable sales growth might slow to a rate of 2-3% in fiscal 2027, compared to 5% in the most recent year.

Still, TJX has many compelling growth factors. Its inventory management is very strong, as it has been successful in navigating tariff concerns. Besides that, analysts are looking for about 10% in earnings growth and a few more percentage points in upside after a 33% improvement in the past year. TJX’s price-to-sales (P/S) ratio of 2.97 suggests it may have upside potential, particularly for investors looking to buy on a dip.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.