Are value stocks more attractive than growth stocks? This expert says US tech stocks are too "top-heavy"
1min read Zacks Investment Management portfolio manager Brian Mulberry said he prefers value stocks over growth stocks, according to Zacks Investment Management. Mulberry explained that the "Big Seven" is making valuations "a little bit top-heavy." He noted: "The S&P 500 is currently trading at about 22 times earnings. If we concentrate that to the Big Seven, it's still in the 30s. When you see sectors like utilities where the expected earnings growth is there, but the expected P/E is in the 9s or 10s, you find a lot more discussion about the valuations of those specific sectors." Mulberry noted that in those sectors, the stocks that are performing well will see "continuing earnings growth" and provide better investment opportunities. He said: "So we really feel like if you were to turn to some of the more traditional value sectors right now, you can do better at the current valuations."
