Summary

• Many value stocks are trading well below historical norms, with valuations at a meaningful discount to the S&P 500 Index.
• Energy, financials, healthcare, and industrials are typical value sectors and can help reduce exposure to concentrated growth or AI-centric stocks.
• Companies with solid balance sheets, consistent earnings, and tangible cash flows may be positioned to benefit from renewed economic momentum.

By Kevin Holt & Tracy Fielder

Value stocks can play an important role in building a diversified portfolio across different market environments. Here are five key points to keep in mind about large-cap value investing.