Growth Investing Screen
A popular growth investing screen is based on the concept of GARP, or growth at a reasonable price. This screen seeks to identify companies with long-term growth prospects that are in the early stages before they become "glamor stocks". T. Rowe Price originated this idea back in the 1930s.
He found success by departing from what was then conventional wisdom that all stocks were cyclical, arguing instead that most companies passed through stages of a life-cycle which were a predictable growth, maturity and decline. By looking for those companies just entering the growth phase of the cycle and holding them for a long time, he was able to realize superior returns. It's not that easy to screen mechanically for one of Rowe's main criteria, which is to look for companies where EPS is increasing at the peak of each successive major business cycle, in order to rule out non-growth cyclicals.
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