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Value stocks have outperformed growth stocks across the market so far in 2026, a shift that market watchers say reflects investor repositioning after a three-year bull run left many growth shares priced for optimism.
As growth stocks became overvalued, investors have increasingly rotated toward cheaper value names and, in some cases, moved into what they view as safer investments. The gap has been more pronounced in mid-caps and small-caps.
So far this year, the Russell 1000 Value Index has returned about 8%, while the Russell 1000 Growth Index is flat. In smaller segments, the Russell 2000 Value Index is up 12% year to date, compared with an 8% return for the Russell 2000 Growth Index.
For investors seeking value stocks amid uncertainty, one reference point is Bill Miller and his firm, Miller Value Partners. Miller built his reputation at Legg Mason by beating the S&P 500 for 15 straight years before launching Miller Value Partners, which is now run by his son, Bill Miller IV. Miller remains an advisor and minority stakeholder.
In the first quarter, the firm added two notable positions to its Deep Value strategy: Bloomin' Brands (BLMN) and Crescent Energy (CRGY).
As a deep value manager, Miller looks for stocks with depressed prices that the firm believes are mispriced. The strategy often targets companies undergoing turnarounds or transformations, trading below what the firm sees as long-term value.
Bloomin' Brands, which owns Outback Steakhouse and Carrabba's, fits the turnaround and transformation profile. The stock has been under pressure for years, posting an average annualized return of -28% per year over the past five years, and it is trading at about $6.00 per share.
The company has been in turnaround mode since activist investor Starboard Value took a 9% stake two years ago. It also hired a new CEO tasked with executing the Starboard turnaround plan, which includes enhancing the balance sheet, investing in technology and systems, streamlining operations and productivity, enhancing the menu, and remodeling Outback restaurants.
Crescent Energy, an oil and gas and exploration company, is also described as inexpensive, trading at 8 times forward earnings. Unlike Bloomin' Brands, Crescent stock has been rising, up 61% year to date, supported by higher oil and gas prices.
The shares were weaker last year amid softer commodity prices and the acquisition of Vital Energy, which added to debt. Miller points to management’s history of buying discounted assets and argues that Vital can improve operations by removing excess costs, driving down development costs, and enhancing well productivity. The acquisition also brings Crescent into the Permian Basin in Texas.
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