Everything you know about growth and value stocks is about to flip

[NewsFeeder]

Everything you know about growth and value stocks is about to flip

Is Walt Disney Co. a value stock? Prior to the pandemic, for example, Disney’s forward-looking P/E ratio was around 16— below that of the S&P 500 (SPX) . Fast forward 12 months, and “Disney’s financial and valuation picture [will be turned] upside down,” according to Kathleen Houssels, who until the end of March was Global Chief Investment Officer at AXA Rosenberg Investment Management.

https://finance.yahoo.com/m/0a65a4f...0059/everything-you-know-about.html?.tsrc=rss

 

[Bullitt]

In 2009 many stocks had nosebleed PE and forward PE ratios. That's just how it goes in a bear market.

Disney has a hand in everything from resorts, film, cruises, theme parks and internet streaming, serving as a good barometer of the return to normalcy.

Given reasonable assumptions about its price and earnings, Houssels says, it’s entirely possible that Disney’s forward-looking P/E will be a sky-high 110 a year from now.

 

[Bullitt]

Value has caught up to growth.

VOOG = Vanguard Growth
IVE = iShares S&P Value

 

[Bullitt]

So much for that trend. Value as a whole hasn't done much since June.

Energy and bank companies are two major sectors dragging on the economic recovery. Depressed oil prices and near zero interest rates don't help, but neither does the fact that there isn't a high flyer in either sector. (Though who can complain about low gas prices which lower the prices we pay for everything?)

Consumer discretionary is still doing very well in surpassing it's early 2020 highs, but most of that is because of a small handful of companies that were well positioned for internet sales. Take those high flyers out and it's a different story.

I've got nothing against the rich, but the rich have definitely gotten richer during the shutdown.