T. Rowe Price's McPherson sees green light for value stocks

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Economic uncertainty has held back value stocks, but fund manager Heather McPherson of T. Rowe Price Group Inc sees plenty of opportunity to ...

NEW YORK: Economic uncertainty has held back value stocks, but fund manager Heather McPherson of T. Rowe Price Group Inc sees plenty of opportunity to scoop up undervalued shares, including in the financial and utilities sectors.

Though some of her holdings have underperformed, she sees the tide turning as the industrial sector of the U.S. economy improves and the Federal Reserve's monetary policy remains accommodative. For McPherson, one such bet is Wells Fargo, the top holding in her fund as of Sept. 30. She said the San Francisco-based bank is well-positioned to finally move beyond a sales practices scandal.Shares of Wells Fargo were at US$54.20 in afternoon trading on Thursday, below the US$65 range they reached in early 2018 but above their close of US$43.38 on Aug. 15, before Chief Executive Charlie Scharf took over.

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