Value Stocks Outperform Growth Stocks in 2026
- Market Performance Comparison: Year-to-date in 2026, the Russell 1000 Value Index has returned approximately 8%, while the Russell 1000 Growth Index remains flat, indicating a strong performance of value stocks, particularly with widening gaps in mid-cap and small-cap stocks.
- Miller's Investment Strategy: Renowned value investor Bill Miller and his firm, Miller Value Partners, made notable additions of Bloomin' Brands and Crescent Energy in Q1, reflecting their deep value strategy focused on identifying undervalued stocks in uncertain markets.
- Bloomin' Brands Transformation: Bloomin' Brands has seen an average annual return of -28% over the past five years, currently trading around $6, as activist investor Starboard Value's 9% stake has prompted a turnaround plan aimed at enhancing financials and operations, with potential EBITDA growth from $270 million to $500 million.
- Crescent Energy Growth Potential: Crescent Energy's stock has surged 61% year-to-date, currently priced at $13.46, benefiting from rising oil and gas prices, while management's strategy of acquiring discounted assets is expected to improve operational efficiency and strengthen its position in the Permian Basin.
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- Earnings Announcement: Crescent Energy is set to release its Q1 2023 earnings on May 4 after market close, with a consensus EPS estimate of $0.36, reflecting a staggering 3700% year-over-year increase, indicating a significant improvement in profitability.
- Strong Revenue Expectations: The anticipated revenue for Q1 is $1.16 billion, representing a 22.1% year-over-year growth, which suggests ongoing enhancements in market demand and operational efficiency, potentially boosting investor confidence further.
- Performance Beat Record: Over the past year, Crescent Energy has exceeded EPS estimates 25% of the time and revenue estimates 100% of the time, showcasing its reliability in earnings forecasts and adaptability in the market.
- Estimate Revision Trends: In the last three months, EPS estimates have seen five upward revisions and three downward adjustments, while revenue estimates have experienced three upward revisions and one downward, reflecting analysts' positive outlook and increasing market confidence in the company's future performance.
- Market Performance Comparison: Year-to-date in 2026, the Russell 1000 Value Index has returned approximately 8%, while the Russell 1000 Growth Index remains flat, indicating a strong performance of value stocks, particularly with widening gaps in mid-cap and small-cap stocks.
- Miller's Investment Strategy: Renowned value investor Bill Miller and his firm, Miller Value Partners, made notable additions of Bloomin' Brands and Crescent Energy in Q1, reflecting their deep value strategy focused on identifying undervalued stocks in uncertain markets.
- Bloomin' Brands Transformation: Bloomin' Brands has seen an average annual return of -28% over the past five years, currently trading around $6, as activist investor Starboard Value's 9% stake has prompted a turnaround plan aimed at enhancing financials and operations, with potential EBITDA growth from $270 million to $500 million.
- Crescent Energy Growth Potential: Crescent Energy's stock has surged 61% year-to-date, currently priced at $13.46, benefiting from rising oil and gas prices, while management's strategy of acquiring discounted assets is expected to improve operational efficiency and strengthen its position in the Permian Basin.
- Value Stock Outperformance: In 2026, value stocks have outperformed growth stocks, with the Russell 1000 Value Index returning approximately 8% year-to-date, while the Russell 1000 Growth Index remains flat, indicating a shift in investor preference towards safer investments.
- Miller's Investment Strategy: Miller Value Partners has added two notable stocks, Bloomin' Brands and Crescent Energy, to its Deep Value strategy, with Bloomin' Brands trading at about $6 per share and suffering a -28% average annual return over the past five years, yet is undergoing a turnaround driven by activist investors.
- Bloomin' Brands Potential: The company, after years of declining stock prices, is projected to increase adjusted EBITDA from $270 million to $500 million, indicating significant turnaround potential, with its current stock price at just 6 times forward earnings.
- Crescent Energy Growth: Crescent Energy's stock has surged 61% year-to-date, trading at 8 times forward earnings, and despite increased debt from acquiring Vital Energy, management's history of buying discounted assets suggests strong operational improvements and cost reductions ahead.
- Strong Fund Performance: Miller Deep Value Select Fund achieved an impressive net gain of 8.39% in Q1, significantly outperforming the S&P 1500 Value Index at 0.19% and the S&P 600 Value Index at 4.32%, demonstrating the effectiveness of its investment strategy and market adaptability.
- Key Contributor Analysis: Nabors Industries (NBR) emerged as the largest positive contributor with a 58% increase in stock price during Q1, which not only boosted the fund's overall performance but also reflects the company's strong recovery potential in the industry.
- Position Adjustment Strategy: Despite JELD-WEN (JELD) and Conduent (CNDT) experiencing declines of 49% and 33% respectively, the fund increased its positions in both companies, indicating confidence in their long-term fundamental value and a contrarian investment strategy during market downturns.
- New Investment Initiatives: The fund initiated positions in Crescent Energy (CRGY) and Bloomin’ Brands (BLMN) early in the quarter, with the former favored for its significant asset base and free cash flow capabilities, while the latter is viewed as a potential value rebound opportunity, showcasing the fund's positive outlook for future growth.
- Chevron Performance: Chevron Corporation (CVX) has seen a 26% increase in the Zacks Consensus Estimate for its current year earnings over the past 60 days, indicating a significant enhancement in profitability that is likely to strengthen its market competitiveness.
- Crescent Energy Growth: Crescent Energy Company (CRGY) has experienced a 42.1% rise in the Zacks Consensus Estimate for its current year earnings during the same period, showcasing its strong performance in the oil and gas exploration sector, which may attract more investor interest.
- BCB Bancorp Earnings Outlook: BCB Bancorp, Inc. (BCBP) has seen a 15.3% increase in the Zacks Consensus Estimate for its current year earnings over the past 60 days, reflecting robust growth potential as a bank holding company that could enhance shareholder returns.
- High Dividend Yields: All three companies are ranked #1 by Zacks as strong buy stocks, with dividend yields of 3.6% for Chevron, Crescent Energy, and BCB Bancorp, all exceeding their respective industry averages, demonstrating their ability to attract income-focused investors.

Market Trends: The S&P 500 has dropped close to 5% recently, influenced by the U.S. conflict with Iran, although some stocks, particularly in the airline industry, have bucked the trend by rising during this period.
Investment Opportunities: Certain companies, like Crescent Energy and Viper Energy, are gaining attention from analysts due to their potential for growth and attractive dividend yields, despite the challenging market conditions.
Crescent Energy's Performance: Crescent Energy has shown impressive production growth and financial stability, making it a favored choice among analysts, especially as it benefits from higher oil prices and domestic shale operations.
Viper Energy's Unique Position: Viper Energy stands out in the energy sector as a royalty company, which mitigates operational risks while still providing exposure to energy market fluctuations, making it an appealing option for investors seeking stability amidst volatility.








