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