Growth stocks got hot this summer, but -- like the season -- the tide will soon turn again in favor of value, says a slew of top value managers.
Year-to-date the iShares S&P 500 Value Index (IVE) has returned 3.7% versus 2.3% for the iShares S&P 500 Growth Index (IVW). Over the past three months, however, growth has made a strong comeback as traders have jumped back into higher-multiple stocks and overall economic expansion has stalled, leading fund managers to search high and low for growth.
Despite this summer's turnaround, value managers remain confident cheap stocks will outperform higher-priced ones through the rest of this year and into next. And they say that there are plenty of underappreciated stocks still out there. Here are a few of their favorites: