By Michael J. Fleisher
Value stocks have lagged growth stocks for some time, but the disparity has become particularly acute this year. Growth stocks have rebounded from their March lows, while value stocks generally remain below the breakeven point as measured by the Russell 1000 Growth and Russell 1000 Value Indices.
Still Room to Catch the Deep Value Wave
Furthermore, within value, the cheapest-quartile stocks generally remain up to nearly 20% below breakeven from their March lows. Certain sectors, including energy and financials, have lagged significantly. This disparity suggests a shift may be yet to