Downward Growth Revisions Show Growth Stocks' Weakness

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Rupert Hargreaves
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Updated on

This time last year, it looked as if value was making a comeback after several years of underperformance. From January to mid-September 2016, the iShares Russell 1000 Value Index outperformed its growth counterpart by 3% and went on to finish the year nearly 10% higher. Unfortunately, this year the index has struggled to hold on to its gains. Year-to-date the value index has underperformed growth by nearly 15% as the so-called FANG stocks have surpassed all expectations. However, according to a new research report from analysts at Jefferies, there are underlying signs that growth outperformance may be built on shaky…

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk