Challenging times for value investors

Despite lacklustre performance so far this year, U.S. market is "not cheap" says Beutel's Glenn Fortin.

Sonita Horvitch 20 June, 2018 | 5:00PM

Glenn Fortin, vice-president and U.S. equity specialist at Beutel, Goodman & Co., says that the U.S. market has been focused on growth and momentum stocks, and that this has made it most challenging for value investors. Essentially a bottom-up stock selector, Beutel Goodman uses strict value criteria in making its equity investments.

The broad U.S. equity market, says Fortin, as measured by the S&P 500 Index, has put on a lacklustre showing so far this year. This benchmark index produced a total return of 2% in U.S.-dollar terms from the beginning of the year to the end of May. The technology sector put up the strongest performance over that period, and the consumer discretionary sector also did well.

As modest as the S&P 500 Index's performance has been in the first five months of 2018, he notes, that it is still better than that of the Russell 1,000 Value Index, which had a negative total return of -1.9%. "This index is our benchmark for the performance of U.S. value stocks."

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Security NamePriceChange (%)Morningstar Rating Inc3,184.94 USD-1.00
AutoZone Inc1,178.12 USD-0.04
Baxter International Inc81.74 USD0.74
CVS Health Corp59.23 USD0.51
Facebook Inc A278.73 USD4.17
Harley-Davidson Inc29.18 USD0.76
Kellogg Co65.97 USD-0.42
Omnicom Group Inc51.50 USD0.68
Teradyne Inc92.07 USD4.70
Verizon Communications Inc56.75 USD-0.87

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Sonita Horvitch

Sonita Horvitch  

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