U.S. stocks are at record highs, but value investor John Rogers sees a new opportunity in one underperforming name. The three major U.S. stock averages each closed at all-time highs Friday, with the S & P 500 posting its 63rd record close of the year. "It really is a tale of two markets," Rogers, the Ariel Investments co-CEO and chief investment officer, said Monday on CNBC's " Squawk Box ." "The broad market we think is quite expensive. … But there are pockets of opportunity and some really cheap value stocks in our mid-cap specialty space." Value stocks trade at prices thought to be relatively cheap given their fundamentals. Shares of the Ariel Fund are outperforming the broader market this year, up roughly 35% in 2021, compared with the S & P 500's 25% gain. Rogers told CNBC he likes Adtalem Global Education , a for-profit education company focused on the health-care workforce. The stock pulled back following a weaker-than-expected quarterly earnings report last Wednesday, with shares 13.9% lower in the past week and down more than 4% in 2021. "There's a massive shortage of nurses in this country," Rogers said. "[Adtalem] generates lots of cash and they're selling off their financial services enterprises, which we think they'll use that cash to pay down debt and buy back stock." Rogers also likes Adtalem's new chief executive, who entered the role in September . "We think Stephen Beard, the new CEO, is going to be the right person to get Adtalem back on track," Rogers said. The money manager's other value stock favorites at the moment are toymaker Mattel , data firm Nielsen and entertainment company Madison Square Garden Entertainment , he told CNBC.
U.S. stocks are at record highs, but value investor John Rogers sees a new opportunity in one underperforming name.