Some investors place themselves in either the growth camp — focusing on the most rapidly growing companies, no matter how high their stock prices may be — or the value camp, going with slow growers that are trading on the cheap. Today we’re screening a group of hundreds of growth stocks to highlight 10 trading at forward price-to-earnings valuations that are less than half that of the S&P 500.
Meanwhile, there were 845 companies in the Russell 1000 Value Index RLV as of July 31. These companies have relatively low price/book ratios, with lower growth forecasts and slower increases in sales per share over the past five years.
Here are comparisons of average annual returns for the three Russell 1000 indexes, the three iShares exchange-traded funds that track them, and similar index ETFs run by Vanguard:Screening the Russell 1000 Growth Index for value The iShares Russell 1000 ETF trades at a weighted forward price-to-earnings ratio of 18.9, based on consensus earnings estimates among analysts polled by FactSet.
First, we’ll limit the list to 432 companies that are covered by at least five analysts polled by FactSet, to ensure some variety of opinion behind the earnings estimates.