DEEP - Rediscovering The Potential Of Downtrodden Value Stocks
By Avi Lavi and James MacGregor
The coronavirus crisis and recession have pummeled value stocks as investors shun riskier parts of the market. Yet these conditions have left some higher-quality companies trading at valuations that underestimate their ability to withstand shorter-term stress—and their longer-term recovery potential.
Value stocks have been unloved by investors for years. After about a decade of underperformance, the economic damage from the coronavirus crisis has been especially painful. With the world reeling from a global health crisis and economic shock, global and US value stocks fell harder than the broader market