This year has seen growth stocks trounce their value peers, in a sharp reversal of 2022’s pattern. But it hasn’t always been smooth: Momentum has shifted on a dime more than once this year, with technology, energy, banks, and other sectors in and out of favor.
Perhaps stocks that show attributes of growth, value, and momentum investing styles can sail through the turbulence. Barron’s screened the Russell 1000 index for stocks that are meaningfully cheaper than the index, are expected to grow earnings faster next year, and have outperformed the market this year and since the summer.
Finally, the companies must be expected to beat the Russell 1000’s 11% forecast earnings growth in 2024. That reduced the screen to just eight stocks.Value, Growth, and Momentum Source: FactSet, Bloomberg The screen produced four upstream oil-and-gas companies: Diamondback Energy , Targa Resources , Range Resources , and Southwestern Energy .
Newsletter Sign-up Celanese also passes the screen. It’s a big player in plastics and other chemical raw materials used in a range of industries and end markets, including automotive, industrial, medical, and consumer products. The company has been dealing with a tough market in Europe and China this year, and it’s undoubtedly an economically sensitive business.