Rising Inflation Drives Value Stocks Recovery
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 22 2026
0mins
Source: CNBC
- Value Stock Recovery: The iShares Russell 1000 Value ETF (IWD) has risen over 48% in the past five years, while its growth counterpart, IWF, has nearly doubled, indicating a renewed investor interest in value stocks amid rising inflation, which may further boost their performance.
- Sector Performance Disparity: In 2023, the S&P 500 energy sector surged 30%, while healthcare fell 4.5%, consumer staples rose 10%, and materials increased by 9.5%, highlighting the growing appeal of cyclical value stocks, particularly in energy and consumer sectors under inflationary pressures.
- Economic Growth Expectations: Real GDP is projected to grow by 2.1% in 2025 and increase to 2.4% in 2026, with the Atlanta Fed forecasting growth above 4% in the second quarter, suggesting robust economic performance under inflation, which may further support value stocks.
- Rising Concentration in Tech Stocks: Despite inflation, tech stocks are experiencing a cyclical boom, particularly in semiconductors and AI infrastructure, with the S&P 500 rising about 5% since mid-April, indicating that investor concentration in tech may limit further upside due to associated risks.
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Analyst Views on SFB
Wall Street analysts forecast SFB stock price to rise
0 Analyst Rating
0 Buy
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0 Sell
Current: 19.730
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Current: 19.730
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About SFB
Stifel Financial Corp. is a financial holding company. The Company's principal subsidiary is Stifel, Nicolaus & Company, Incorporated, a full-service retail and institutional wealth management and investment banking company. Its segment includes Global Wealth Management, Institutional Group, and others. Its Global Wealth Management segment consists of two businesses, the Private Client Group and Stifel Bancorp. The Private Client Group provides securities brokerage services, including the sale of equities, mutual funds, fixed income products, and insurance, as well as offering banking products to its private clients through its bank subsidiaries, which provide residential, consumer, commercial lending, and FDIC-insured deposit accounts to customers. The Institutional Group segment includes institutional sales and trading. The Other segment includes interest income from stock borrow activities, unallocated interest expense, interest income and gains and losses from investments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Rising Inflation Drives Value Stocks Recovery
- Value Stock Recovery: The iShares Russell 1000 Value ETF (IWD) has risen over 48% in the past five years, while its growth counterpart, IWF, has nearly doubled, indicating a renewed investor interest in value stocks amid rising inflation, which may further boost their performance.
- Sector Performance Disparity: In 2023, the S&P 500 energy sector surged 30%, while healthcare fell 4.5%, consumer staples rose 10%, and materials increased by 9.5%, highlighting the growing appeal of cyclical value stocks, particularly in energy and consumer sectors under inflationary pressures.
- Economic Growth Expectations: Real GDP is projected to grow by 2.1% in 2025 and increase to 2.4% in 2026, with the Atlanta Fed forecasting growth above 4% in the second quarter, suggesting robust economic performance under inflation, which may further support value stocks.
- Rising Concentration in Tech Stocks: Despite inflation, tech stocks are experiencing a cyclical boom, particularly in semiconductors and AI infrastructure, with the S&P 500 rising about 5% since mid-April, indicating that investor concentration in tech may limit further upside due to associated risks.
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- Value Stock Recovery: The iShares Russell 1000 Value ETF (IWD) has risen over 48% in the past five years, while its growth counterpart, IWF, has nearly doubled, indicating a renewed investor interest in value stocks amid rising inflation, which may further boost their performance.
- Sector Performance Disparity: In 2023, the S&P 500 energy sector surged 30%, while healthcare fell 4.5%, consumer staples rose 10%, and materials increased by 9.5%, highlighting the growing appeal of cyclical value stocks, particularly in energy and consumer sectors under inflationary pressures.
- Economic Growth Expectations: Real GDP is projected to grow by 2.1% in 2025 and increase to 2.4% in 2026, with the Atlanta Fed forecasting growth above 4% in the second quarter, suggesting robust economic performance under inflation, which may further support value stocks.
- Rising Concentration in Tech Stocks: Despite inflation, tech stocks are experiencing a cyclical boom, particularly in semiconductors and AI infrastructure, with the S&P 500 rising about 5% since mid-April, indicating that investor concentration in tech may limit further upside due to associated risks.
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Market Outlook and Investment Advice: Despite recent highs, Wall Street cautions that changes in trade policy could impact the market, suggesting investors consider alternative stocks recommended by analysts, which have historically outperformed the S&P 500.
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Stock Market Reaction: Progressive's stock fell nearly 4% following a downgrade by analyst Meyer Shields, despite several other analysts raising their price targets after the company's satisfactory first-quarter results.
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