Value vs growth investing sector-level price targets from Goldman

Sector-level price targets from Goldman Sachs put S&P Energy stocks at 12% upside potential versus only 5% for Information Technology. Analysts attribute this to higher free cash flow yields and capital discipline among energy producers. Such quantitative forecasts feed into the value vs growth investing allocation models for institutional portfolios. It's hard to believe that Warren Buffett's time as CEO of Berkshire Hathaway is coming to an end. The legendary investor took the holding company from a textile manufacturer in 1965 to become one of the largest companies on the planet today, owning more than 100 businesses and with an equity portfolio worth more than $300 billion. As we noted in our recent equity market outlook , the market broadening put growth and value stocks in a neck-and-neck race in the latter half of the year. This followed two exceptional years for growth and more than a decade of leadership over value. Historical correlation analysis reveals that in periods of yield curve steepening, value stocks tend to outperform growth by an average of 2.7% annually. In 2024, yield spreads have widened slightly, supporting the argument for overweight positions in financials and energy. Value vs growth investing in such cycles tends to reward cash flow stability over narrative-driven multiples.