For years, value investing—buying stocks that appear undervalued relative to their intrinsic worth—has been overshadowed by the meteoric rise of growth stocks. But in 2025, the tide is turning, and value investing is making a strong comeback. What’s behind this shift, and where are the best opportunities for investors looking to capitalize on undervalued assets?
Value Stocks Are Thriving—Everywhere Except the U.S.
One of the most surprising trends this year is that value stocks are outperforming globally, but not in the United States. While U.S. growth stocks like Nvidia have rebounded from earlier market lows, international value equities have maintained their lead. Morningstar Indexes show that value stocks in Europe, Asia-Pacific, and emerging markets have significantly outperformed their growth counterparts. This suggests that investors looking for value opportunities may need to expand their search beyond U.S. markets.
Dividend-Paying Value Stocks Are Gaining Favor
With market volatility still a concern, many investors are turning to dividend-paying value stocks for stability. BofA Securities recently released its top picks for June, highlighting companies that offer strong fundamentals, low price-to-earnings ratios, and reliable dividends. These stocks provide not only potential capital appreciation but also a steady income stream, making them attractive in uncertain economic conditions.
Global Value Investment Corporation’s Winning Strategy
Another sign that value investing is back in favor is the recognition of Global Value Investment Corporation (GVIC) in the PSN Top Guns List for best-performing strategies in Q1 2025. GVIC’s disciplined approach to identifying undervalued stocks has paid off, demonstrating that patience and fundamental analysis remain key to long-term success.
PPFAS Mutual Fund’s Strategic Moves
PPFAS Mutual Fund, known for its commitment to value investing, has made notable portfolio adjustments, including acquiring a stake in telecom giant Bharti Airtel and increasing holdings in four other companies. These moves signal confidence in the long-term potential of undervalued businesses, reinforcing the idea that value investing is not just about finding cheap stocks—it’s about identifying companies with strong fundamentals trading below their intrinsic value.
Final Thoughts
The resurgence of value investing in 2025 presents exciting opportunities for investors willing to look beyond the hype of growth stocks. Whether it’s exploring international markets, focusing on dividend-paying companies, or following the strategies of seasoned value investors, the key is to remain patient and disciplined. As history has shown, value investing rewards those who can weather short-term volatility in pursuit of long-term gains.