Market analysts expect 'quality, growth' stocks to make comeback in 2024

Value investing expected to lag after close to three years of outperformance

Most market analysts are expecting the momentum to shift towards ‘quality’ and ‘growth’ stocks in 2024 after the outperformance of ‘value’ stocks over the past three years.

‘Value’ stocks are generally well-established companies with steady profits that are trading at a discount to what they are intrinsically worth.

Companies in sectors such as commodities, industrials, commercial vehicles and public sector units (PSUs) fall in this bracket. Stocks that consistently generate high return on equity (RoE) and have low cyclicality are considered ‘growth’ stocks. ‘Quality’ is similar to growth except that here investors take a more conservative approach.

Most fund managers