It may be hyperbole to say that growth is the new value, but it’s also accurate to say that plenty of once richly valued growth stocks are now trading at more attractive multiples than they were a year ago.
Some of those names reside in the Goldman Sachs Future Consumer Equity ETF (GBUY). The $318.31 million GINN follows the Solactive Innovative Global Equity Index, and while it’s not a dedicated technology exchange traded fund, it offers investors strong exposure to a slew of growth stocks across multiple sectors that are less expensive today than they have been in quite a while.
“After bearing the brunt of the bear market, many once high-flying technology shares are now trading at deep discounts relative to their past valuations. It’s gotten so bad that the benchmark for value stocks, the Russell 1000 Value Index, will be adding one-time growth bellwethers Meta, Netflix and PayPal to its membership during a rebalance on Friday,” reported John Melloy for CNBC.
Facebook parent Meta Platforms (NASDAQ:META), streaming entertainment giant Netflix (NASDAQ:NFLX), and PayPal are all members of the GINN portfolio.
“The shares are certainly unloved at this point, with just 25% of analysts that cover the stock saying it’s a buy. Analysts also expect earnings to decline this year as Netflix attempts a turnaround strategy to win back investors,” according to CNBC.
However, GINN is home to 468 stocks, meaning its exposure to now-cheap growth stocks doesn’t begin or end with Meta, Netflix, and PayPal. A variety of other GINN holdings now fit the bill as inexpensive, including semiconductor behemoth Advanced Micro Devices (NASDAQ:AMD) and Autodesk (NASDAQ:ADSK).
Speaking of discounted semiconductor stocks, Micron Technology (NASDAQ:MU), Qualcomm (NASDAQ:QCOM), and Skyworks Solutions (NASDAQ:SWKS) also fit that bill, and all three are GINN member firms.
PTC Inc. (NASDAQ:PTC) and Salesforce (NYSE:CRM) are two more examples of growth names with alluring valuations, and both are also GINN components.
“Still, value investing is about the long game, and investors buying these shares now believe the earnings power of these names will return one day, which makes the prices today very cheap,” added CNBC.
GINN surged 9% last week and is higher by 2.15% over the past month.
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.