Value & Growth Stocks
Companies that sell for less than they’re worth are Value Stocks. Bargain hunters like Warren Buffett and Bill Miller prefer this investment style. Those companies expected to make substantial gains in revenue and profit relative to their peers are growth stocks. Share prices of growth stocks usually represent what might happen in the future rather than what the current market conditions are.
Standard & Poor’s (S&P) is in the process of updating its style indexes. They intend to offer two different ways to track value and growth stocks, including one that hopes to more closely match the strategies used by fund portfolio managers. For more details on these changes by Standard & Poor’s go to http://news.yahoo.com/news?tmpl=story&u=/ap/20050928/ap_on_bi_co_ne/of_mutual_interest.