Here's one way to rotate to value with 4 'out-of-favor' stocks and ETFs that hold them
'Investors should be prepared for the likelihood that the gap narrows (a reversion to the mean) and seek out attractive securities within the value style,' CFRA's Rosenbluth says
It has been a tough slog for value tradersover the past few years, with growth strategies ascendant, but many analysts continue to believe value will make a comeback.
"The gap between growth and value strategies is wider than during the tech bubble of the late 1990s," observed Todd Rosenbluth, head of mutual fund and ETF research at CFRA.
"Investors should be prepared for the likelihood that the gap narrows (a reversion to the mean) and seek out attractive securities within the value style," the analyst said.
(Here's a little primer on factors (https://www.marketwatch.com/story/investors-should-get-smart-about-factors-2019-09-27?mod=article_inline) like value and growth, and a more recent update on how to apply that thinking to the current environment (https://www.marketwatch.com/story/here-are-the-factors-and-the-stocks-that-will-help-you-play-the-covid-19-market-2020-06-24).)
Rosenbluth recommends a handful of stocks that he calls "attractive, yet out-of-favor": Cardinal Health (CAH), Cisco Systems Inc., (CSCO) PepsiCo Inc. (PEP), and Walmart Inc. (WMT) If investors want exposure to those securities within a fund, several ETFs that have large holdings of each stock are noted below.
Read next:Forget value vs. growth. We're in a quarantine vs. recovery paradigm now, this analyst says (https://www.marketwatch.com/story/forget-value-vs-growth-were-in-a-quarantine-vs-recovery-paradigm-now-this-analyst-says-11599750206)
-Andrea Riquier; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
September 22, 2020 15:37 ET (19:37 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.