The post Can Value Stocks Rebound in 2025? appeared on BitcoinEthereumNews.com.

Key points Growth outperformed value by a wide margin in 2024. However, over the past six months, mid cap value stocks have beaten growth. There are several reasons why value stocks should bounce back in 2025. Investors may find more value in value stocks this year. The last two years have seen growth stocks go on an incredible ride, pushing the Nasdaq some 85% higher to almost 20,000 since the end of 2022. Further, growth stocks like NVIDIA (NASDAQ: NVDA) have propelled the S&P 500 to two straight years of 20%-plus gains. That’s the first time that has happened since 1998. The technology and growth-heavy Nasdaq finished 2024 up about 30%, while the S&P 500 gained 23% last year. Most of the gains came from the growth stocks, as the S&P 500 Growth index gained 35% last year, while the S&P 500 value index rose just 9.5%. If you add mid caps to the mix, you see that it was nearly as lopsided. The Russell 1000 Growth Index rose 32% last year, while the Russell 1000 Value index climbed just 12%. But after two years of incredible growth, should investors be looking for more value? Growth stocks are overvalued There was a lot of talk about the broadening of the market in 2024, as experts anticipated that investors would move more into smaller cap stocks from overpriced large caps. That happened, to an extent, as smaller cap stocks rallied in the second half. But large cap valuations have remained high. While a summer swoon brought the S&P 500’s P/E ratio down a bit, a fall rally spurred by interest rate cuts, among other factors, sent large caps soaring. With that, valuations increased again, rising back toward a P/E of 30 for the S&P 500. A negative December for the S&P…

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Filed under: News - @ January 3, 2025 6:19 am