Value, Growth Stocks Trade At Record Highs But Long-Term Leadership Lies With One: Analyst
Portfolio Pulse from Piero Cingari
Bank of America's technical analyst, Stephen Suttmeier, analyzed the performance of the iShares Russell 1000 Growth ETF (IWF) and the iShares Russell 1000 Value ETF (IWD), highlighting a significant divergence in their paths. Over the past year, growth stocks, represented by IWF, have outperformed value stocks, represented by IWD, by 20 percentage points, a gap that has widened to nearly 100 percentage points over seven years. The analysis suggests that growth stocks, with top holdings like Microsoft, Apple, and Nvidia, are likely to maintain their market leadership due to their strong performance and sector concentration. Conversely, value stocks, with top holdings like Berkshire Hathaway, JPMorgan Chase, and ExxonMobil, show a more diversified portfolio but lag in performance.
March 25, 2024 | 8:16 pm
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NEGATIVE IMPACT
The iShares Russell 1000 Value ETF (IWD) faces a long-term lagging trend compared to growth stocks, despite potential for gains.
IWD's lagging trend and technical analysis indicating resistance levels and declining MAs suggest a negative short-term impact on its stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 90
POSITIVE IMPACT
Apple Inc. (AAPL) significantly contributes to the iShares Russell 1000 Growth ETF's (IWF) outperformance as a top holding.
AAPL's position as a major holding in IWF and its market dominance suggest a positive short-term impact on AAPL's stock price.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
The iShares Russell 1000 Growth ETF (IWF) is highlighted for its strong performance and potential for further gains, backed by top holdings in tech sectors.
IWF's strong performance and bullish technical indicators, such as breakout point supports and upward pattern counts, suggest a positive short-term impact on its stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Microsoft Corp. (MSFT) is one of the top holdings in IWF, contributing to its strong performance and growth stock leadership.
As a leading holding in IWF, MSFT's strong market performance is a key factor in the ETF's success and suggests a positive short-term impact on MSFT's stock price.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Nvidia Corp. (NVDA) plays a crucial role in the iShares Russell 1000 Growth ETF's (IWF) performance, being one of its top holdings.
As a key holding in IWF, NVDA's performance is integral to the ETF's success, indicating a positive short-term impact on NVDA's stock price.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70