Value stocks have taken the lead over growth stocks in 2026, a trend driven by the overvaluation of growth stocks following a three-year bull market. Investors are increasingly rotating into safer, undervalued options, with the Russell 1000 Value Index returning approximately 8% year-to-date, while the Russell 1000 Growth Index remains flat. This trend is even more pronounced in mid-caps and small-caps, where the Russell 2000 Value Index has surged by 12% compared to an 8% gain for its growth counterpart.
Notable value investor Bill Miller, through his firm Miller Value Partners, has recently added Bloomin’ Brands and Crescent Energy to its Deep Value strategy. Bloomin’ Brands, trading around $6.00 per share, is in a turnaround phase after significant management changes and a new strategic focus, despite its recent struggles. Meanwhile, Crescent Energy has seen a 61% increase this year, benefiting from rising oil prices and operational improvements following its acquisition of Vital Energy.
For market professionals, the shift toward value stocks highlights the potential for significant upside in companies like Bloomin’ Brands and Crescent Energy, which may be undervalued relative to their future earnings potential.
Source: fool.com