Value Stocks Are Seen Having Their Day in U.S. Small Caps
Favoring cheaper stocks is bound to pay off with smaller U.S. companies as it has with larger peers, according to Eduardo Lecubarri, a JPMorgan Chase & Co. equity strategist. Lecubarri recommended buying investments tied to the Russell 2000 Value Index and betting against its growth-stock counterpart in a report Thursday. The value-growth ratio closed at an almost 14-year low in August and rose just 4.6% from there through Friday, according to data compiled by Bloomberg. A comparable ratio for the Russell 1000 value and growth indexes, tracking the largest companies, climbed 12% through Friday from a September low.