While a soft landing from the Fed is necessary, it is not enough, said strategists led by David Kostin.Īs a result, these conditions - low real rates and a growing economy - would make growth stocks an attractive investment game. Two ideal conditions for that conspiracy to drive would be stable or falling interest rates and a slow but growing economy. However, there is a scenario where growth stocks can outperform value. The so-called growth score is a combination of one-year and three-year growth in sales. This suggests that the value will outperform in the coming years. Below is a list of 29 stocks from the S&P 500 that JPMorgan says are cheap but have strong growth potential. This supports the argument in favor of value.Ī September 6 note from Goldman reviews the relationship between value and growth stocks in the current environment. Goldman Sachs believes that economic growth will be slow but positive and interest rates will rise marginally during the coming year. The S&P 500 price index of relatively cheap stocks is down about 9% year-over-year, while the S&P 500 growth index of fast-growing names is down 22% over the same period. While the broader market has taken an overall hit, investors historically migrate to value growth stocks in times of economic crisis. Despite inflation cooling slightly in July, the Federal Reserve has maintained its aggressive stance in the fight to contain it. Credit Ambev SA (ticker: ABEV) Ambev is the Latin American operating division of global beer powerhouse Anheuser-Busch Inbev SA ( BUD ). Within the growth sector, the investment bank favors firms with high profitability. Here are nine such cheap stocks to buy now for less than 5.The plot would require stable or falling interest rates and a slow but growing economy.

Goldman Sachs’ September 6 note shares one scenario in which growth stocks may outperform.

Cheap stocks to buy now