The first quarter of the year is frequently known to follow a seasonal pattern. Stocks that have suffered poor valuations, as well as sector laggards, generally do well in this early part of the year.
“Lower valuation stocks have outperformed peers by an average of 420 bp in 1Q during the past 35 years vs. just 170 bp in all other quarters. Buying laggards has also performed well early in the calendar year, which is notable given the strategy’s extremely poor long-term cumulative returns,” say Goldman Sachs analysts Stuart Kaiser, David J Kostin, Amanda Sneider, Ben Sneider, Rima Reddy and Aaron Woodside in their ‘US Thematic Views’ research note of January 2.
Laggards and low valuation stocks likely to do well in...
Login required to continue reading.
Setup a free account to get access to this article (no credit card required).
View Full ArticleAlready a member? Log in here
Login required to continue reading.
Setup a free account to get access to this article (no credit card required).
View Full ArticleAlready a member? Log in here
