Given the current market reality that there are swings on practically a daily basis between value and growth (value on the days recovery looks good, growth when it doesn't), this week's edition of U.S. News Invested seems to be just what the doctor ordered. To be properly diversified, buy both. And here is a list of the best of each. Hope everyone enjoyed this beautiful weekend. More of the wet stuff on the way this coming week.
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Happy Friday, investors! Stocks fell Thursday despite initial unemployment claims reaching a new pandemic low. TODAY'S FEATURED STOCK STORY 4 Growth Stocks, 4 Value Stocks to BuyFor the first time in recent memory, value stocks are mostly keeping pace with growth stocks so far this year. Growth stocks have led the market charge for more than a decade, but value stock investors argue that elevated inflation levels and the potential for higher interest rates could soon shift the market's preference back in favor of value. The good news for investors is that a well-balanced portfolio should include both growth and value stocks, so there's no need to choose sides. These growth and value stocks should add balance to your investing strategy, according to Bank of America. 1. Growth stock: Alphabet Inc. (ticker: GOOG, GOOGL). Google and YouTube parent company Alphabet has been one of the growth stock stars of the past decade. Over that period, Alphabet shares are up about 1,000%, and its revenue is up 516%. Despite the company's immense $1.9 trillion market cap, Alphabet is still growing at an impressive clip. In the second quarter, the tech giant reported 62% year-over-year revenue growth. Analyst Justin Post says Alphabet is his top megacap tech stock pick for 2021 and believes Alphabet has room for earnings multiple expansion. Bank of America has a "buy" rating and a $3,150 price target for GOOGL stock. 2. Value stock: Morgan Stanley (MS). Morgan Stanley is one of the largest U.S. investment banks and asset managers. The stock is up more than 50% year to date thanks to a strong environment for both financial markets and banks. But even after the rally, Morgan Stanley shares still trade at an attractive forward earnings multiple of just 14.4. Analyst Ebrahim Poonawala says the bull case for Morgan Stanley is driven by the company's track record of solid execution and its potential to unlock value and earnings upside following recent acquisitions. Bank of America has a "buy" rating and a $105 price target for MS stock. Click here to continue.
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