Mark Hulbert, a MarketWatch columnist and stock market analyst with decades of experience, published an article that takes a balanced look at recent evidence that growth strategies may be replaced by value.
If you expect the outperformance of growth stocks to continue, you may be interested in this interview with Justin White, the manager of the T. Rowe Price New America Growth Fund.
Getting back to value, Hulbert compared the recent performance of the S&P 500 Value Index against that of the S&P 500 Growth Index. These are overlapping subsets of the benchmark S&P 500. Here’s how all three indexes have performed during September.
FactSet
The S&P 500 Value Index is made up of 382 stocks, drawn from the S&P 500 by S&P Dow Jones Indices, based on price-to-book-value, price-to-earnings and price-to-sales ratios.
These ETFs track the S&P 500 Value Index:
• SPDR Portfolio S&P 500 Value ETF— annual expenses are 0.04% of assets.
• Vanguard S&P 500 Value ETF— expense ratio: 0.15%.
• iShares S&P 500 Value ETF — expense ratio: 0.18%.
• The Invesco S&P 500 Enhanced Value ETF takes a more ”aggressive” approach to value, concentrating the portfolio in 100 stocks among the S&P 500 with the highest value scores. Its expense ratio is 0.13%.
Among stocks in the S&P 500 Value Index, Apple has, by far, the heaviest weighting, making up 8.7% of SPYV. But Apple doesn’t make the list below, as only 52% of analysts polled by FactSet rate the shares a “buy” or the equivalent. The next largest holding is J.P. Morgan Chase, with 44% “buy” ratings, and the third is AT&T, which also has 44% “buy” ratings.
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Here are the 20 stocks in the S&P 500 Value Index with the highest percentage of “buy” or equivalent ratings among analysts polled by FactSet:
| Company | Ticker | Share ‘buy’ ratings | Share neutral ratings | Share ‘sell’ ratings | Closing price – Oct. 21 | Consensus price target | Implied 12-month upside potential |
| Assurant Inc. | AIZ, -1.03% | 100% | 0% | 0% | $127.56 | $143.25 | 12% |
| Marathon Petroleum Corp. | MPC, +0.79% | 95% | 5% | 0% | $64.67 | $78.74 | 22% |
| L3Harris Technologies Inc. | LHX, +0.51% | 94% | 6% | 0% | $199.66 | $241.67 | 21% |
| Pioneer Natural Resources Co. | PXD, +4.01% | 93% | 7% | 0% | $125.39 | $175.45 | 40% |
| Cigna Corp. | CI, +2.18% | 92% | 8% | 0% | $166.74 | $210.32 | 26% |
| FLIR Systems Inc. | FLIR, -0.39% | 90% | 10% | 0% | $53.43 | $58.89 | 10% |
| Equinix Inc. | EQIX, -1.29% | 88% | 8% | 4% | $577.35 | $578.27 | 0% |
| Centene Corp. | CNC, +1.33% | 88% | 12% | 0% | $45.77 | $68.35 | 49% |
| Norwegian Cruise Line Holdings Ltd. | NCLH, -1.92% | 88% | 12% | 0% | $50.95 | $64.56 | 27% |
| Jacobs Engineering Group Inc. | JEC, +0.44% | 88% | 12% | 0% | $93.11 | $94.93 | 2% |
| LKQ Corp. | LKQ, +0.76% | 87% | 13% | 0% | $31.65 | $35.83 | 13% |
| Valero Energy Corp. | VLO, +1.03% | 86% | 14% | 0% | $93.21 | $99.79 | 7% |
| Quanta Services Inc. | PWR, +0.79% | 86% | 14% | 0% | $40.54 | $44.14 | 9% |
| UnitedHealth Group Inc. | UNH, +2.28% | 85% | 15% | 0% | $243.92 | $285.88 | 17% |
| Baker Hughes Co. Class A | BKR, +2.31% | 85% | 15% | 0% | $22.12 | $29.13 | 32% |
| TechnipFMC PLC | FTI, +1.12% | 85% | 12% | 3% | $23.25 | $30.89 | 33% |
| PVH Corp. | PVH, +3.40% | 84% | 11% | 5% | $89.35 | $100.89 | 13% |
| Lennar Corp Class A | LEN, +0.97% | 84% | 16% | 0% | $61.02 | $64.50 | 6% |
| IQVIA Holdings Inc. | IQV, -0.20% | 84% | 11% | 5% | $143.14 | $176.06 | 23% |
| Mondelez International Inc. Class A | MDLZ, -1.61% | 84% | 16% | 0% | $53.57 | $61.67 | 15% |
| Source: FactSet | |||||||
I hope all of this information was helpful. Have a great day!
