These stocks trade at low price/earnings valuations, and the companies are projected to achieve very high revenue growth rates through 2028
These are some of the stocks that passed a screen of the Russell 1000 Value Index, with a combination of low price/earnings valuations and high growth projections for revenue through 2028.
In 2026, value stocks have outperformed growth stocks in the broad market. Within the value camp, some stocks are trading at compelling valuations, even as the companies are expected to grow their businesses rapidly over the next two years.
Value stocks are typically those of mature companies that might be growing slowly, are priced low relative to their earnings power, or both. They might feature attractive dividend yields. It is reasonable for an investor to expect a value-oriented stock strategy to be less risky over the short term, but also less lucrative over the long term than the S&P 500 SPX or a growth index.
The Russell 1000 Index RUI is designed to capture 98% of the market for common stocks listed in the U.S. The Russell 1000 Value Index RLV has 869 stocks drawn from the full Russell 1000 that have relatively low price-to-book ratios, as well as lower two-year earnings-growth projections and lower growth rates for revenue per share over the previous five years. The Russell indexes are reconstituted annually.
The Russell indexes are weighted by companies' market valuations, subject to caps applied by FTSE Russell, a unit of LSEG. No stock can make up more than 22.5% of a Russell index when it is reconstituted, and stocks with weightings of 4.5% or higher cannot make up more than a combined 45% of a Russell index.
The Russell 1000 Value Index and the Russell 1000 Growth Index RLG overlap - the latter includes 371 stocks. But they have performed quite differently this year. Here is how the three Russell indexes have performed for 2026 through Tuesday, along with the S&P 500, all with dividends reinvested:
The Russell 1000 Value Index has been a strong performer this year, even after it was reconstituted on June 26.
The Russell 1000 Value Index was most recently reconstituted on June 26. That meant "rewarding success" in part by removing highflying tech stocks, including Micron (MU), Advanced Micro Devices (AMD) and Sandisk (SNDK), as well as Alphabet (GOOGL).
But the Russell 1000 Value Index has remained in the lead since it was reconstituted, and the trend has accelerated with a 4.3% return in October through Tuesday. In comparison, the Russell 1000 Growth Index was down 2.4% for October, while the full Russell 1000 was up 1.1% and the S&P 500 was up 1% month-to-date.
Screening the value stocks
We screened the components of the Russell 1000 Value Index by looking at forward price-to-earnings ratios, based on consensus 12-month earnings-per-share estimates among analysts polled by FactSet. We also looked at the companies' projected compound annual growth rates (CAGR) for revenue from 2026 through 2028. The revenue projections are based on consensus estimates, and adjusted for companies whose fiscal reporting periods don't match the calendar.
For the P/E component of the screen, we used the iShares Russell 1000 Value ETF IWD, which tracks the Russell 1000 Value Index by holding all of its stocks. The ETF's forward P/E is 17.26, according to FactSet. Half of that valuation would be 8.63.
The stocks in IWD are projected to have a weighted revenue CAGR of 4.6% from 2026 through 2028, according to FactSet's calculations.
We narrowed down the list of 869 stocks in the Russell 1000 Value Index to 79 trading at a forward P/E of less than 8.63.
Then we cut the list to 11 companies with projected revenue CAGR from 2026 through 2028 of at least twice the 4.6% projection for IWD.
Here they are, sorted by ascending forward P/E:
Company Forward P/E Projected revenue CAGR from 2026 through 2028 Projected EPS CAGR from 2026 through 2028 Market cap (in millions)
Equitable Holdings 6.3 9.7% 21.6% $14,629
Shift4 Payments 6.3 10.7% 18.6% $2,921
SLM 6.6 9.7% 31.5% $3,587
OneMain Holdings 7.0 11.7% 18.4% $6,484
Super Micro Computer 7.0 26.6% 19.3% $21,476
XP 7.1 13.2% 13.8% $6,522
UWM Holdings 7.6 6.6% 62.1% $487
Avnet 7.7 13.4% 24.8% $7,372
First Solar 7.9 15.1% 29.7% $18,071
Almonty Industries 8.0 114.3% 71.8% $2,654
Carlyle Group 8.1 23.6% 29.7% $13,808
Source: FactSet
Click on the tickers for more about each company, including corporate profiles, analysts' ratings and consensus price targets.
The rightmost column lists the companies' market capitalization, showing that the group includes small-cap, midcap and large-cap companies. The largest on the list is Super Micro Computer (SMCI), which surprised investors with a preliminary set of strong quarterly revenue and profit-margin numbers last week.
The table also includes projected EPS growth rates, with most implying improving profit margins as revenues increase over the next two years.
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-Philip van Doorn
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