The Time Value of Money

With Paul away celebrating his 44th birthday, the Steves are running this week’s show…

Growth stocks have been coming down lately. Are they a buy? That’s what we’re looking at in this show.

Steve W starts us off with the causes of the drop in growth stocks. Inflation, interest rates, and the possibility of a recession are weighing on growth stocks. Steve discusses why and what he’s keeping an eye on.

Is the fall overdone? In some stocks, maybe. Steve D has a chart showing where some popular growth stocks have fallen to in terms of their fundamentals. Both Steves talk about what’s been catching their eyes.

After that, it’s stocks, stocks, and more stocks. Steve D kicks us off with a growth stock that might be coming back into range… and into fashion! It’s Kering, which we’ve mentioned on the show, but it’s been catching the eye of the PlayingFTSE growth investor lately.

Growth stocks have been falling but steadier value stocks have been holding up well. A good example is US bum-cleaning company Kimberly-Clark. Steve looks at the valuation on the steady staples outfit and wonders whether the market might be putting a high premium on a defensive sector.

Steve W has a similar idea. He’s been looking at a pair of UK stocks. The first is fallen grower Rightmove. The second is steady defensive stock Diageo. Steve’s a big fan of both stocks, but which one’s trading at the better price at the moment? The PlayingFTSE value enthusiast gives us his view.

It’s not just growth selling cheaper than value across the board, though. Steve D thinks that Warren Buffett-backed Snowflake has come crashing down, but still doesn’t look like a bargain. On the other hand, there’s a train company Alstom that looks very steady and dependable and much more attractive…

All on this week’s PlayingFTSE!

The scatterplot chart we referenced:

https://twitter.com/richard_chu97/status/1523398905190178816