Chart: There are more opportunities for value strategies

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Value stocks have lagged growth stocks for much of the past 10 years. But our latest chart points to value strategy opportunities.

Valuations suggest value strategies may outperform

 

  • Value has underperformed growth. Value has lagged growth 75% of the time over the past five years by an average of 5.8% per year.*

 

  • There are more opportunities for value now. The differences in the valuation ratios between “cheap" stocks and the “most expensive” stocks, measured on both a forward earnings yield (i.e., PE inverted) and Book/Price ratio, suggest that there’s an opportunity in utilizing value strategies today.

 

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