Inside the imperfect value rally

US growth stocks have mostly outperformed their value counterparts over the past 15 years. But the tide has turned, with value gaining a small edge last year and outperforming growth so far in 2026. Morningstar’s US Large‑Mid Value Index beat its Growth Index in 2025 thanks largely to the performance of the financial services sector and Alphabet – whose surge clouded value’s apparent victory. Value stocks haven’t consistently outperformed in the US, but in other global markets, value investing has held up better. Recent market leadership has favoured expensive, fast‑growing tech giants, meaning...