Bank of Montreal (BMO) strategist Brian Belski believes that a value-oriented investment strategy can still deliver favorable returns, despite the underperformance of value stocks. Belski recommends an investment strategy that focuses on stocks with next twelve months (NTM) price-to-earnings (P/E) multiples of less than 15x, which has historically produced attractive risk-adjusted returns over the long term. He argues that in the current market conditions, a value-focused investment strategy can outperform. The current list of BMO's value stock picks includes at least 10 stocks from seven sectors, including the Technology sector. Some of the S&P 500 stocks with NTM P/E ratios below 15x that BMO rates as outperform include AbbVie, American International Group, Bunge Global, Baker Hughes, ConocoPhillips, Devon Energy, EOG Resources, Gilead, Marathon Petroleum, Morgan Stanley, Pfizer, PPG Industries, Phillips 66, and Valero Energy [0e1950b9].
Bank of Montreal (BMO) is known for its value-oriented investment strategies. BMO's value stock picks offer investors an opportunity to add portfolio diversity and potentially benefit from favorable returns. By focusing on stocks with lower NTM P/E multiples, investors can identify undervalued stocks that have the potential for future growth. BMO's list of value stocks spans across various sectors, providing investors with a range of options to diversify their portfolios. The inclusion of stocks from the Technology sector indicates that BMO recognizes the potential for value in this sector, which has traditionally been associated with growth stocks. Overall, BMO's value stock picks present an attractive investment opportunity for investors looking to enhance their portfolio performance [0e1950b9].