Value Stock Gains Need Fresh Catalyst With Earnings a Wild Card
Analysts expect earnings for value companies to fall by 12% in the first quarter from a year earlier.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Value stocks are having a rare moment in the face of this year’s equity selloff. The upcoming earnings season will help determine whether the group’s outperformance against the market’s high-flyers can persist.
The S&P 500 Value Index — home to shares of banks, consumer staples, health care and other companies that appear cheap compared to fundamentals — is up 0.4% this year, versus a 6.5% decline for its flashier, growth-focused counterpart. If that holds through the end of March, it would be the value gauge’s best quarterly run against its rival since the market meltdown of 2022.