10 Best GARP Stocks to Buy Now

4. KLA Corp. (NASDAQ:KLAC)

Fwd. P/E: 15

Expected EPS Growth Next FY: 21%

Number of Hedge Fund Holders: 58

Upside Potential: 20%

KLA Corp. (NASDAQ:KLAC) is a leading provider of process control and yield management solutions for the semiconductor industry. Its extensive portfolio of tools helps semiconductor manufacturers in inspecting and measuring chips, along with data analysis technology, to ensure better production and performance.

KLA Corp. (NASDAQ:KLAC) has delivered strong performance in 2025, outperforming broader indices with a 13% return year-to-date. This momentum has been supported by robust Q2 FY 2025 results, announced on January 30. The company reported 23.7% year-over-year revenue growth, reaching the upper end of its guidance, while adjusted EPS surged 33% year-over-year, reflecting strong profitability. KLA is also a consistent cash flow generator, having produced approximately $3.0 billion in free cash flow (FCF) annually over the past three years. Notably, the company plans to return over 85% of its FCF to shareholders through dividends and share repurchases in the long term.

The company’s impressive performance has reinforced analyst confidence in its future growth. Following the earnings report, Vedvati Shrotre of Evercore ISI reiterated a Buy rating with a $900 price target. Likewise, a BofA analyst maintained a Buy rating while raising the price target from $840 to $900.