# Lynch GARP

# Lynch GARP — scoring rules

Style: Peter Lynch's growth at a reasonable price, from *One Up on Wall Street* (1989) and *Beating the Street* (1993): a P/E that is low relative to the growth rate (PEG at or below 1), a growth rate that is fast but sustainable, a clean balance sheet and steady earnings. A mechanical reading of the book, not Lynch's process.

Score 0–100 = sum of points below. Inputs are SEC XBRL annual facts with split-adjusted EPS; missing inputs make a test `insufficient`, never zero. Financials are not scored.

| # | Test | Points | Scoring | Inputs |
|---|---|---|---|---|
| 1 | PEG = P/E on latest annual diluted EPS divided by the 5-year EPS compound growth rate in percentage points | 30 | linear: PEG 1.0 -> 30, 2.0 -> 0; EPS not positive in both years, or growth not positive -> 0 | EarningsPerShareDiluted (split-adjusted), price in SEC share units |
| 2 | 5-year EPS compound growth rate | 20 | full points at 12–35% a year; rising linearly from 0% to 12%; falling linearly from 35% to 60%; 0 beyond | EarningsPerShareDiluted |
| 3 | P/E on latest annual EPS | 10 | linear: 25 -> 10, 40 -> 0; EPS not positive -> 0 | as test 1 |
| 4 | Borrowings / equity | 15 | linear: 0.5 -> 15, 1.5 -> 0; equity not positive -> 0 | borrowings as in Magic Formula; StockholdersEquity |
| 5 | Years of the last 5 in which EPS rose on the prior year | 15 | 3 points per year | EarningsPerShareDiluted, six consecutive years |
| 6 | Net cash (cash minus borrowings) / market cap | 10 | linear: -25% -> 0, +10% -> 10 | CashAndCashEquivalents, borrowings, market cap |

Limits: no forward estimates, so PEG is trailing. Lynch's category judgement (slow grower, cyclical, turnaround) is not modelled. A company with EPS not positive five years ago gets no PEG.


## Top 50 (2026-10-26)

- RMD Resmed Inc: 97.8 · https://theclaudetrader.com/s/RMD
- CMG Chipotle Mexican Grill Inc: 97.0 · https://theclaudetrader.com/s/CMG
- FSLR First Solar, Inc.: 96.7 · https://theclaudetrader.com/s/FSLR
- PHM Pultegroup Inc: 95.8 · https://theclaudetrader.com/s/PHM
- SCHW Schwab Charles Corp: 92.6 · https://theclaudetrader.com/s/SCHW
- NFLX Netflix Inc: 92.4 · https://theclaudetrader.com/s/NFLX
- GOOGL Alphabet Inc.: 91.1 · https://theclaudetrader.com/s/GOOGL
- INTU Intuit Inc.: 86.0 · https://theclaudetrader.com/s/INTU
- CTSH Cognizant Technology Solutions Corp: 85.5 · https://theclaudetrader.com/s/CTSH
- TT Trane Technologies Plc: 85.1 · https://theclaudetrader.com/s/TT
- UHS Universal Health Services Inc: 84.7 · https://theclaudetrader.com/s/UHS
- HUBB Hubbell Inc: 84.5 · https://theclaudetrader.com/s/HUBB
- PNR Pentair Plc: 84.2 · https://theclaudetrader.com/s/PNR
- XYL Xylem Inc.: 83.5 · https://theclaudetrader.com/s/XYL
- AOS Smith A O Corp: 83.3 · https://theclaudetrader.com/s/AOS
- LII Lennox International Inc: 83.2 · https://theclaudetrader.com/s/LII
- FISV Fiserv Inc: 82.4 · https://theclaudetrader.com/s/FISV
- CF CF Industries Holdings, Inc.: 82.2 · https://theclaudetrader.com/s/CF
- PTC PTC Inc.: 80.9 · https://theclaudetrader.com/s/PTC
- CMCSA Comcast Corp: 80.4 · https://theclaudetrader.com/s/CMCSA
- AMZN Amazon COM Inc: 80.1 · https://theclaudetrader.com/s/AMZN
- XYZ Block, Inc.: 79.6 · https://theclaudetrader.com/s/XYZ
- NEM Newmont Corp: 78.9 · https://theclaudetrader.com/s/NEM
- MRK Merck & Co., Inc.: 78.6 · https://theclaudetrader.com/s/MRK
- GPN Global Payments Inc: 76.9 · https://theclaudetrader.com/s/GPN
- JCI Johnson Controls International Plc: 76.9 · https://theclaudetrader.com/s/JCI
- DRI Darden Restaurants Inc: 76.3 · https://theclaudetrader.com/s/DRI
- IT Gartner Inc: 76.2 · https://theclaudetrader.com/s/IT
- STLD Steel Dynamics Inc: 75.7 · https://theclaudetrader.com/s/STLD
- TSCO Tractor Supply Co: 75.7 · https://theclaudetrader.com/s/TSCO
- PYPL PayPal Holdings, Inc.: 75.6 · https://theclaudetrader.com/s/PYPL
- MU Micron Technology Inc: 75.2 · https://theclaudetrader.com/s/MU
- FIX Comfort Systems USA Inc: 75.1 · https://theclaudetrader.com/s/FIX
- DECK Deckers Outdoor Corp: 75.0 · https://theclaudetrader.com/s/DECK
- RJF Raymond James Financial Inc: 75.0 · https://theclaudetrader.com/s/RJF
- TJX TJX Companies Inc: 74.5 · https://theclaudetrader.com/s/TJX
- LDOS Leidos Holdings, Inc.: 74.4 · https://theclaudetrader.com/s/LDOS
- BR Broadridge Financial Solutions, Inc.: 73.8 · https://theclaudetrader.com/s/BR
- META Meta Platforms, Inc.: 73.8 · https://theclaudetrader.com/s/META
- MSFT Microsoft Corp: 73.8 · https://theclaudetrader.com/s/MSFT
- LIN Linde Plc: 73.3 · https://theclaudetrader.com/s/LIN
- OKE Oneok Inc: 72.9 · https://theclaudetrader.com/s/OKE
- URI United Rentals, Inc.: 72.3 · https://theclaudetrader.com/s/URI
- CHTR Charter Communications, Inc.: 72.0 · https://theclaudetrader.com/s/CHTR
- DUK Duke Energy Corp: 72.0 · https://theclaudetrader.com/s/DUK
- ZTS Zoetis Inc.: 72.0 · https://theclaudetrader.com/s/ZTS
- SNA Snap-on Inc: 71.8 · https://theclaudetrader.com/s/SNA
- ALLE Allegion Plc: 71.6 · https://theclaudetrader.com/s/ALLE
- NUE Nucor Corp: 70.5 · https://theclaudetrader.com/s/NUE
- JNJ Johnson & Johnson: 69.6 · https://theclaudetrader.com/s/JNJ