QUICK SPARK: Growth Beats Value for the Longest Streak in Stock Market History
Value stocks are lagging growth stocks for the longest stretch on record, underscoring how persistent the market’s preference for higher-multiple growth has become. Barchart flagged the milestone in a post on X, saying value has underperformed growth for “the longest period in history.”
Retail Investors Target Select Stocks
Retail investors are showing a selective approach in the current market environment., retail investors continued to buy the dip in July, focusing on stocks that had pulled back while taking profits in others. The Schwab Trading Activity Index rose to 59.80 in July, up from 59.12 in June, indicating a cautious yet opportunistic stance among investors. Schwab clients were particularly interested in companies like Micron Technology and Tesla, which saw significant buying activity.
Sandisk and Micron’s Valuation Concerns
Amidst the ongoing preference for growth stocks, some tech companies are trading at historically low valuations. As of Thursday, SanDisk and Micron are trading near six times forward earnings. Despite significant rallies earlier this year, these stocks are valued like businesses in decline, raising questions about the sustainability of their earnings. Analysts have increased their forward earnings estimates for both companies, yet their stock prices remain well below all-time highs.
Read also
- Top 3 Tech Stocks That Could Lead To Your Biggest Gains This Quarter
- Terrible Jobs Report Sparks Rally In AI and Tech: 10 Stocks Leading Friday’s Surge
- Top 3 Tech And Telecom Stocks That May Crash In Q3
Photo: Shutterstock