With Vaccines Arriving, Value Investors Try for a Comeback
After years of lagging performance, practitioners of an old approach to investing are hoping their time is nigh.
A Banner Health employee prepares a dose of the Pfizer-BioNTech Covid-19 vaccine at the Arizona State Fairgrounds in Phoenix.Credit.Adriana Zehbrauskas for The New York Times
Value investors have had a tough decade, with growth stocks stealing the investing show.
Overall, this year has offered little encouragement. In 2020, the Russell 1000 Growth Index returned 38.49 percent, while the Russell 1000 Value Index returned 2.8 percent, according to Morningstar.
But with vaccinations underway and the possibility of a return to something resembling normality rising, overlooked so-called value stocks have begun to show some signs of life. These are generally stocks that trade at lower price-to-earnings and price-to-book-value ratios than some investors think the companies are worth. And since Oct. 28, for example, t