Investment bank JPMorgan has picked a number of companies it describes as "extremely cheap," as a shift in focus towards so-called "value" stocks looks set to resume.
Value stocks refer to those that go up and down with the economy. They can be underappreciated by investors and are different to "growth" stocks, which are seen as having strong earnings potential. Markets around the world have pushed to highs in 2021 in large part because investors have been making huge bets on growth stocks — especially tech companies.
In a note published Monday, the JPMorgan analysts said a shift towards value continued "have legs" and picked a number of European stocks to take advantage of this trend.
"We screen for deep value stocks which are trading extremely cheap, have underperformed the market and have positive earnings momentum," the analysts wrote.