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Investors paying too much for growth, overlooking challenged stocks: Strategist

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U.S. stocks are modestly overvalued, but investors can find opportunities in broad swaths of some sectors that are currently underappreciated, Glenmede Trust Director of Investment Strategy Jason Pride said Monday.

In a slow-growth environment, investors tend to pay too much for shares of companies that are growing, he said. That leads them to overlook companies that have experienced some difficulty in the same spaces as those high-fliers, he said.

This is happening to a "dramatic degree" in the tech sector, Pride told CNBC's "Squawk Box." While names like Facebook and Amazon have run up this year, the rest of the sector is relatively reasonably valued, providing an opportunity for stock pickers to invest in a number of cheaper equities, he said.

The S&P 500 information technology sector is up about 0.9 percent this year, making it the third-worst performing group in the index.

"It's not really a stock-by-stock story. There's entire groups of stocks that are just underappreciated," Pride added.

Pride said he also sees this trend playing out in the energy and industrials sectors.

Glenmede also favors health-care stocks for their "reasonable valuations" and defensive characteristics, which provide a buffer against some of the risks in the back half of the business cycle, according to Pride.

On Monday, the National Association for Business Economics reported business economists now expect U.S. growth of 1.8 percent in 2016, down from an earlier estimate of 2.2. percent. Respondents to the NABE survey also lowered their expectations for business investment, consumer spending, corporate profits and industrial production.

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