US value stocks offer opportunities for bargain-hunters, BofA's Subramanian says

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Savita Subramanian News

Growth Stocks,Value Stocks,Equity Market

Value stocks offer some of the most compelling valuations in the U.S. equity market after badly lagging their growth-focused counterparts this year, Bank of ...

- Value stocks offer some of the most compelling valuations in the U.S. equity market after badly lagging their growth-focused counterparts this year, Bank of America Global Research equity and quant strategist Savita Subramanian said on Wednesday.

Subramanian argues the underperformance of value stocks has made them more attractively priced compared with their growth peers. The S&P 500 growth index trades at 28.3 times forward earnings, while the S&P 500 value index has a forward P/E of 15.8, according to LSEG Datastream. Prices for services pushed the annual rate of inflation up to 2.9 per cent in May, according to Statistics Canada.Still, it expects the central bank to pick up the pace of rate cutting in 2025, with the benchmark rate reaching 2.75% by the end of next year.High-quality REITs can give you high-yielding dividends monthly to earn a good passive income. The post 2 REITs on My Radar as Interest Rates Drop appeared first on The Motley Fool Canada.

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