Growth stocks have become quite expensive, but some of them still trade at reasonable prices. It seems to be a wise strategy to look for these stocks in a high price market.

Nowadays, it seems that everyone prefers to invest in "growth-oriented" companies, which are companies that have the potential to grow their returns faster than their peers. No index is more growth-oriented than the technology-heavy Nasdaq 100 Index, which has risen 13% this year. Some of the reasons for this increase are that tech companies' earnings in the first quarter exceeded analysts' expectations, and their expected profits continue to increase. Some examples of companies in the filter include some common names, such as [company name not provided]. Non-technology stocks include Progressive and Texas Roadhouse. The list also includes a chip manufacturer that will report revenue on Wednesday. Analysts expect its earnings per share to grow by 17% annually between this year and 2025 and have raised this year's expectations by 1% in the past three months. Due to increased investment in employees and research by Broadcom, profit margins have declined, so earnings growth may be slower than sales growth. Pinterest, a website platform that helps shoppers find outfits, trinkets, and housewares, has also made the list. Analysts expect its earnings to grow by 28% annually this year and next year, and have raised this year's profit forecast by 6%. They expect sales to grow by 19% annually to $4.3 billion by 2026. The platform has about 500 million users worldwide, and although the number of users will grow at a mid-single-digit rate, Pinterest will drive growth by getting users to spend more, and average user income will increase significantly.$NASDAQ 100 Index (.NDX.US)$The Nasdaq 100 Index, which is more growth-oriented than any other index, has risen by 13% this year. This is due in part to tech companies' earnings in the first quarter exceeding analysts' expectations, and their expected profits continue to increase.

Unfortunately, these stocks are also very expensive. The expected earnings multiple for the Nasdaq 100 index over the next 12 months remains slightly above 26 times this year. This is an elevated level since the Federal Reserve began raising rates in early 2022 and well above the S&P 500's 20 times.

Although growth stocks usually trade at a premium, the entire market is expensive, putting all stocks at risk. Therefore, Jefferies' strategist screens for "reasonably priced growth" stocks. Through these stocks, investors can enjoy strong profit growth while avoiding overvaluation, thereby taking on less downside risk than the most expensive stocks.

The strategist is looking for companies with a market capitalization of at least $2 billion and expected earnings growth of more than 10% per year on average over the next two years. These companies' earnings expectations have also been raised in the past three months, and their PEG ratio (price-to-earnings ratio divided by expected earnings growth) is 1.5 or lower, about two times lower than the S&P 500. This means that GARP investors pay less for each percentage point of earnings growth.

Please use your Futubull account to access the feature.$NVIDIA (NVDA.US)$, $Alphabet-A (GOOGL.US)$, $Meta Platforms (META.US)$ and $Netflix (NFLX.US)$company name not provided$Progressive (PGR.US)$ and $Texas Roadhouse (TXRH.US)$a chip manufacturer that will report revenue on Wednesday$Broadcom (AVGO.US)$Analysts expect its earnings per share to grow by 17% annually between this year and 2025 and have raised this year's expectations by 1% in the past three months. Due to increased investment in employees and research by Broadcom, profit margins have declined, so earnings growth may be slower than sales growth.

Nevertheless, the expected growth is still strong, and analysts predict that annual sales will grow by 24% to $58 billion by 2025. Infrastructure software business, including its recent $69 billion acquisition of VMware, is expected to double in the next two years because it enables Broadcom to provide solutions for data centers, which are in demand due to the increasing need for AI. Sales of chips and hardware related to AI should also increase. The stock trades at a slightly lower 27 times next 12 months' earnings, about 1.5 times expected earnings growth.

$Pinterest (PINS.US)$Pinterest, a website platform that helps shoppers find outfits, trinkets, and housewares, has also made the list. Analysts expect its earnings to grow by 28% annually this year and next year, and have raised this year's profit forecast by 6%. They expect sales to grow by 19% annually to $4.3 billion by 2026. The platform has about 500 million users worldwide, and although the number of users will grow at a mid-single-digit rate, Pinterest will drive growth by getting users to spend more, and average user income will increase significantly.

As people find reasons to trade, advertisers will pay more to advertise on the site, particularly because the company's revenue per user is still only a small part of Meta's. It is expected that revenue will grow by about 25% per year by 2025. The stock's P/E ratio is about 28 times and its PEG ratio is about 1. This looks quite reasonable.

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