Investors advised to focus on undervalued small-cap stocks for potential returns
From Yahoo Finance: 2025-04-09 11:23:00
- Growth stocks are overvalued in 2025, leading Morningstar to advise investors to focus on undervalued stocks, which are trading at a 13% discount to fair value. Small-cap stocks are a standout, trading at an 18% discount compared to large and mid-cap equities.
- Value investor William C. Nygren sees a unique opportunity for value investors due to the market’s concentration on tech giants, with attractive valuations in various industries like consumer durables and healthcare.
- Joel Greenblatt of Gotham Asset Management believes that despite underperformance, value stocks can prevail, with his fund returning a positive spread for the last three years.
- iShares Russell 1000 Value ETF (IWD) aims to replicate the Russell Value Index, holding nearly $62 billion in net assets with a 1.79% yield and an expense ratio of 0.19%.
- Berkshire Hathaway Inc. (NYSE:BRK-B) is a top holding in IWD, with 131 hedge funds reporting stakes in the company, and Bill & Melinda Gates Foundation Trust being the largest stakeholder.
- IWD ranks 10th among Deep Value Stocks ETFs, with potential in AI stocks for higher returns within a shorter timeframe. An AI stock with promising returns is highlighted in the article for investors to consider.
Read more at Yahoo Finance: Among the Top Deep Value Stocks ETFs