Brian Mulberry, portfolio manager at Zacks Investment Management, stated that he prefers value stocks over growth stocks, believing that the valuation of US tech stocks is too high. He pointed out that the expected P/E ratio of the S&P 500 index is around 22 times, while the P/E ratios of the seven tech giants exceed 30 times. In contrast, the expected P/E ratios of industries such as utilities are only 9 or 10 times, indicating more attractive investment opportunities. He advised investors to focus on traditional value sectors for better returns
According to the information obtained by Zhitong Finance, Brian Mulberry, a portfolio manager at Zacks Investment Management, stated that he prefers value stocks over growth stocks. Mulberry explained, "The 'Big Seven' are making valuation a bit top-heavy." He pointed out, "In terms of earnings, the current expected valuation of the S&P 500 index is around 22 times. If we focus on the Big Seven, it is still around 30 times. When you see the expected earnings growth in industries like utilities, and their expected P/E ratios are only around 9 or 10 times, you will find that the valuation discussions for these specific industries are much more intense."
Mulberry noted that in these industries, stocks with better performance will see "sustained earnings growth," providing better investment opportunities. Using banks as an example, he said, "Therefore, we really feel that if you now turn to some more traditional value sectors, you can do better at the current valuation levels."