Growth
stocks
have
often
been
investor
darlings
—
the
S
&
P
500
is
driven
by
stocks
in
sectors
like
tech.
Value
stocks
are
less
popular.
They
usually
experience
slower
growth,
with
lower
price-to-earnings
or
price-to-book
ratios
but
also
higher
dividend
yields.
Such
stocks
are
usually
in
sectors
such
as
financials,
industrials
or
consumer
staples.
But
many
growth
stocks
are
also
becoming
expensive,
prompting
some
investors
to
turn
to
value
stocks.
“The
S
&
P
500
at
5,075
with
expected
earnings
growth
of
10%
for
2024
gives
us
$243
a
share
and
puts
us
at
21X
earnings
–
its
pricey,
plain,
and
simple,”
said
Brian
Szytel,
senior
managing
director
of
The
Bahnsen
Group
in
late
February.
The
S
&
P
500
closed
around
5,078
on
Tuesday.
He
said
he
wouldn’t
own
the
index
at
that
level.
“I
would
however,
own
parts
of
the
market
shift
to
more
value-oriented
names
and
believe
that
rotation
that
started
in
2022
from
growth
to
value
will
resume.
This
is
a
time
to
earn
‘carry’,
income,
and
dividends,”
he
said.
Szytel
says
this
is
his
main
message
for
investors:
Now’s
a
time
for
value
rather
than
growth,
and
for
stock-picking
instead
of
passive
management.
Goldman
Sachs
also
recently
highlighted
value
stocks
that
stand
out
for
their
cheap
valuations
compared
with
earnings
growth
prospects.
Those
interested
in
value
stocks
can
consider
the
following
from
CNBC
Pro’s
screen
of
the
Vanguard
Value
ETF.
All
have
20%
or
more
upside
and
a
buy
rating
of
at
least
50%.
The
stocks
that
appeared
are
from
sectors
ranging
from
health
care
to
energy
and
real
estate.
Analysts
gave
three
stocks
more
than
30%
upside
–
AES
Corporation
,
Baker
Hughes
and
Halliburton
Company
.
AES
also
had
one
of
the
highest
dividend
yields
in
the
list
(4.3%).
Royalty
Pharma
had
the
highest
potential
upside
at
47%,
a
good
buy
rating
of
87.5%,
and
a
decent
2.9%
for
dividend
yields.
VICI
Properties
had
the
highest
dividend
yield
in
the
list
(5.7%).
