John Rogers Jr., President and CIO of Aerial Investments
Adam Jeffery | cnbc
According to John Rogers of Aerial Investments, now is the time to focus on value stocks as 2024 will be tough in terms of growth.
“I think the top of growth stocks is coming,” Rogers told CNBC’s Scott Wapner at the CNBC CFO Council Summit in Washington, D.C. “I really, really do.”
In fact, Rogers, chairman of Aerial Investments, expects mega-cap tech stocks to outperform this year and potentially face challenges in 2024.
Instead, investors are bullish on value names as the performance gap between growth and value continues to widen. For example, the Russell 3000 is up nearly 34% this year, while the Russell 3000 is up more than 2% in value.
“It’s one of the largest gaps in recorded history, I think, looking at those indices,” Rogers said. “So that gives me a lot of confidence that there’s going to be a small value space, and as we go into next year, growth stocks are going to have a very tough time.”
Certainly, the value manager said growth stocks may continue to outperform in a falling interest rate environment. But he believes the gap between growth and value is so large that there will be few big winners that growth investors may ignore.
“I think there will be a real opportunity to pick out some of those orphans, the really outperformers, as we go through ’24 and ’25, even the growth stocks,” Rogers said. “There will also be headwinds for lower rates.”
Investors are enthusiastic about shares related to housing sector. names include ADTHome security company that is down 35% this year, or Mohawk IndustriesThe flooring company is down 14%.
Rogers is also exploring opportunities in the media sector, which has been hit by advertising concerns this year. he favors Paramount Global Based on the merits of its vast content library and portfolio of global brands, as well as a “mindset shift” among the leadership there.
“We think the stock is worth more than $40 a share. We think there’s a real opportunity here,” Rogers said.
Paramount shares, which are down 14% this year, closed at $14.41 on Wednesday.
Elsewhere, investors like Madison Square Garden Entertainment, He also said his team is more “bullish” on Cruise shares than ever. Royal CaribbeanWhich has been “our kind of anchor stock” given consumer appetite for experiences.
(TagstoTranslate) Madison Square Garden Company (T) Paramount Global (T) Mohawk Industries Inc. (T) ADT Inc. (T) Royal Caribbean Cruises Ltd. (T) Business News