Core Viewpoint - Growth stocks are exhibiting stronger fundamentals compared to value stocks, with higher earnings growth and healthier balance sheets despite concerns over tariffs and deficits [1] Group 1: Earnings Growth and Financial Health - Growth indices show a projected long-term earnings per share growth of 14.4%, while value indices show only 10.2% [1] - Growth companies maintain healthier debt levels, with net debt at 0.4 times earnings before interest, taxes, depreciation, and amortization, compared to 2.2 times for value companies [1] - Approximately $10 trillion in announced private fixed investment in the U.S. supports these fundamentals, enhancing productivity and industrial capacity [1] Group 2: Investment Cycle and Valuation Metrics - The $10 trillion investment pipeline spans various sectors, including artificial intelligence infrastructure and manufacturing capacity, expected to boost productivity and industrial capacity in the coming years [1] - Traditional valuation metrics may become less effective in assessing companies whose value is increasingly driven by intangible assets, such as software and intellectual property [1] - A research-driven approach is essential to identify companies positioned for long-term innovation-led growth, as modern growth businesses often do not fully reflect their value in traditional accounting measures [1] Group 3: Growth Investing Strategy - The Alger 35 ETF takes a focused approach to growth investing, holding 35 companies identified through fundamental research as having promising growth potential [1] - The fund, launched in May 2021, currently has assets of $124 million and carries a 0.55% expense ratio [1] - The combination of superior earnings growth, stronger balance sheets, and a developing capital investment cycle suggests that growth stocks may be better positioned than traditional metrics indicate [1]

Investors looking for stocks in the Building Products - Miscellaneous sector might want to consider either Jacobs Solutions (J) or Advanced Drainage Systems (WMS) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zack ...

Why the Stock Market's Shift to Value Could Mean Lower Returns - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# Why the Stock Market's Shift to Value Could Mean Lower ReturnsBy [Teresa Rivas]ShareResize---ReprintsIn this article[SPX]A rotati ...

A rotation into value stocks might make the market look cheaper. History suggests it could also bring weaker returns and more volatility. ...

Investors with an interest in Medical - Instruments stocks have likely encountered both Coloplast A/S Sponsored ADR (CLPBY) and Penumbra (PEN) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts a ...

Warren Buffett is a legendary investor widely recognized for his ability to consistently deliver massive returns to Berkshire Hathaway (BRK.A) (BRK.B) shareholders. His reputation isn’t built on chasing the latest market obsessions, but on a signature investment style: identifying value stocks that offer high dividends and hold durable competitive advantages. However, as the modern market grapples with high valuations and the “growth at any cost” mentality of the artificial intelligence era, one of Buffe ...

Core Viewpoint - Kamada (KMDA) is currently viewed as a better value opportunity compared to Techne (TECH) based on various financial metrics and rankings [1]. Group 1: Zacks Rank and Earnings Outlook - Kamada has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while Techne has a Zacks Rank of 3 (Hold) [3]. - The Zacks Rank system is designed to identify companies with improving earnings outlooks, which is favorable for investors [2]. Group 2: Valuation Metrics - Kamada's forward P/E ratio is 18.08, significantly lower than Techne's forward P/E of 30.35, suggesting that Kamada may be undervalued [5]. - Kamada has a PEG ratio of 0.72, while Techne's PEG ratio is 3.44, indicating that Kamada's expected earnings growth is more favorable relative to its price [5]. - Kamada's P/B ratio is 1.84, compared to Techne's P/B of 4.66, further supporting the notion that Kamada is a better value investment [6]. Group 3: Value Grades - Kamada has received a Value grade of A, while Techne has a Value grade of D, highlighting the significant difference in their valuation attractiveness [6].

Core Viewpoint - Carrefour SA (CRRFY) and Wal-Mart de Mexico SAB de CV (WMMVY) are both attractive options for value investors, but Carrefour appears to be the superior choice based on valuation metrics [1][7]. Valuation Metrics - CRRFY has a forward P/E ratio of 9.87, while WMMVY has a forward P/E of 19.08, indicating that Carrefour is potentially undervalued compared to Wal-Mart de Mexico [5]. - The PEG ratio for CRRFY is 1.80, suggesting a more favorable earnings growth expectation relative to its price, whereas WMMVY has a PEG ratio of 5.55, indicating less attractive growth prospects [5]. - CRRFY's P/B ratio is 1.11, which is significantly lower than WMMVY's P/B of 4.95, further supporting the notion that Carrefour is undervalued [6]. Earnings Outlook - Both companies currently hold a Zacks Rank of 2 (Buy), reflecting an improving earnings outlook due to positive analyst estimate revisions [3].

Market Overview - Rotation and diversification have been key strategies in the market recently, with yield plays and value stocks outperforming the flat S&P 500 year-to-date through Valentine's Day 2026 [1] Fund Performance - A specific fund has benefited from the influx of money into these outperforming sectors, indicating a shift in investor preferences towards yield and value investments [1] Investment Strategy - The focus on thematic investing and macro drivers of various asset classes such as stocks, bonds, commodities, currencies, and crypto is emphasized, showcasing a comprehensive approach to market analysis [1] Content Creation - The importance of creating engaging and educational financial content is highlighted, with a focus on using empirical data and charts to communicate investment narratives effectively [1]

Core Viewpoint - The article highlights the resilience of the US equity market, driven by a strong economy, solid earnings, and accommodative monetary policies, while emphasizing the potential of high-growth stocks despite premium valuations [1]. Economic Outlook - Wall Street strategists expect continued corporate earnings growth in 2026, with S&P 500 company earnings projected to rise by 15.5% in 2026, compared to 13.2% in 2025 and 12.1% in 2024, indicating a positive market outlook [2]. - Some economists predict muted economic growth in 2026, suggesting a focus on growth stocks with low valuations may be beneficial [6]. Investment Strategy - The methodology for selecting high-growth low-PE stocks involved identifying companies with over 20% sales growth and more than 10% upside potential, while focusing on those with a forward P/E of less than 15 and popularity among hedge funds [8]. Company Highlights - **Coterra Energy Inc. (NYSE:CTRA)**: - 5-Year Revenue Growth: 22.43% - Forward P/E: 13.19 - Stock Upside Potential: 11.11% - Recently announced a merger with Devon Energy Corp., creating the largest US shale operator with an enterprise value of approximately $58 billion [11][12]. - **Delta Air Lines, Inc. (NYSE:DAL)**: - 5-Year Revenue Growth: 29.96% - Forward P/E: 10.32 - Stock Upside Potential: 11.20% - The company has approved a quarterly dividend and plans to modernize its fleet with new Airbus wide-body jets to meet strong demand [15][16][18].