Value vs growth investing consensus forward EPS growth for value

Consensus forward EPS growth for value sectors is now tracking at 8%, while growth sectors hover at 12%, yet risk-adjusted returns favor value due to lower volatility and stronger dividend backing. This risk-return trade-off is a central element in value vs growth investing strategy assessments in current markets. When it comes to value, Synchrony Financial's numbers look quite compelling. Using our six-point valuation framework, where each check a company passes for being undervalued adds a point, the company racks up a score of 5 out of 6. That is a strong signal for anyone looking for stocks trading below their intrinsic worth. Of course, not all valuation approaches are created equal, and before we explore the unique insight that ties it all together at the end of this article, let’s break down how Synchrony stacks up using a variety of traditional methods. The story of market concentration, starring the Magnificent 7 mega-stocks as the primary drivers of return, is not a new one. But it did feature a plot twist in the second half of 2024 when market breadth began to expand and allowed some new winners to emerge. Among the beneficiaries were value stocks. Value stocks in energy and financials rallied as higher-for-longer rates favor asset-backed earnings over leveraged expansion models. This split defines current positioning in the value vs growth investing debate across asset managers.