These value stocks will ‘catch up’ to growth stocks once economy improves, Goldman says

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Value investing has long gone out of style for many investors after years of underperformance, but Golman Sachs is calling a revival of this classic factor strategy after the historic coronavirus sell-off pushed the valuation dispersion to near record levels.

The valuation gap between expensive and cheap stocks is now the widest on record outside of the tech bubble of 1999, according to Goldman’s chief U.S. equity strategist, David Kostin. The market’s highest flyers have been driving stocks’ rebound, setting the stage for cheap names to take the leadership role when the economy growth starts to pick up again, Goldman said.

Here are the bank’s top value picks.

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