Growth stocks, after trailing value for most of last year, are on the move, pushing the Nasdaq 100 index to a record this week. Many on Wall Street believe this trend is just getting started.
The chart shows value stocks are actually down for the year despite the market rally. Jefferies equity strategist Steve DeSanctis, whose views on small caps are widely followed on Wall Street, crunched the numbers and found the more "growth" characteristics a stock has, the greater the outperformance this year.
"We think that the growthier growth stocks will outperform the weaker value names," wrote DeSanctis in a note to clients Thursday, citing the faster economy and higher rates.