The value vs growth stocks debate in 2026 has a clear scoreboard so far: between April 7 and August 12, 2026, five large growth names (Nvidia, Microsoft, Meta, Alphabet and Apple) gained an average of 18.1 percent, while five large value names (ExxonMobil, Johnson & Johnson, Coca-Cola, Procter & Gamble and Verizon) gained an average of 3.9 percent, according to DataPorium price data [1]. The valuation gap is wide, with trailing P/E ratios of 29 to 36 for Microsoft, Apple and Nvidia against 11 for Verizon and 21 for Procter & Gamble, but several "value" names are not cheap at all [1] [2]. This article lays out the numbers behind the debate and what they do and do not prove.
How value and growth are defined
Academic finance defines value by book-to-market. The Fama-French HML factor is the average return on two high book-to-market (value) portfolios minus the average return on two low book-to-market (growth) portfolios, with size and book-to-market breakpoints set each June [3]. Index providers use richer definitions. The iShares S&P 500 Value ETF (IVE) tracks the S&P 500 Value Index, which selects large-cap stocks using book value, earnings and sales relative to price, while the iShares S&P 500 Growth ETF (IVW) tracks the S&P 500 Growth Index, built from above-average earnings and revenue growth [4] [5]. In practice, growth today means the large technology platforms and value means energy, health care, staples and telecommunications.
Value vs growth stocks: returns and valuations as of August 12, 2026
| Company | Style | Close April 7, 2026 | Close August 12, 2026 | Change | Trailing P/E |
|---|---|---|---|---|---|
| Nvidia (NVDA) | Growth | $178.10 | $224.09 | +25.8% | 34.3 |
| Microsoft (MSFT) | Growth | $372.29 | $492.43 | +32.3% | 29.3 |
| Meta Platforms (META) | Growth | $575.05 | $578.85 | +0.7% | 21.8 |
| Alphabet (GOOGL) | Growth | $305.46 | $343.54 | +12.5% | 26.3 |
| Apple (AAPL) | Growth | $253.50 | $302.25 | +19.2% | 36.3 |
| ExxonMobil (XOM) | Value | $163.91 | $159.75 | -2.5% | 26.5 |
| Johnson & Johnson (JNJ) | Value | $238.41 | $260.86 | +9.4% | 30.3 |
| Coca-Cola (KO) | Value | $75.91 | $86.71 | +14.2% | 27.3 |
| Procter & Gamble (PG) | Value | $141.30 | $144.08 | +2.0% | 21.3 |
| Verizon (VZ) | Value | $48.62 | $46.98 | -3.4% | 11.4 |
Prices are DataPorium daily closes. Trailing P/E uses the August 12 close, the diluted share count from the latest quarterly income statement and the sum of net income over the four most recent quarters in DataPorium's statements, which run through the March 2026 quarter for most companies, the June 2026 quarter for Meta, and, for Nvidia, the quarter ended April 26, 2026 from its 10-Q [1] [2] [6]. Alphabet's trailing earnings include a large first-quarter investment gain, which lowers its reported P/E.
The growth side has earned its lead
The growth basket's advantage since April is not only multiple expansion. Nvidia's quarter ended April 26, 2026 reported revenue of $81,615 million, up 85 percent from a year earlier, and net income of $58,321 million [6]. Microsoft's revenue grew 18 percent and Apple's 17 percent in their March 2026 quarters, according to DataPorium's income statements [2]. Year to date from December 31, 2025, the picture is more mixed: Nvidia is up 20.2 percent, Apple 11.2 percent and Alphabet 9.8 percent, but Microsoft is up only 1.8 percent and Meta is down 12.3 percent, because both fell sharply in the first quarter before recovering [1]. Growth has won the last four months, not every month.
Three things the 2026 numbers actually show
- Value is a label, not a discount. Johnson & Johnson at 30.3 times trailing earnings and Coca-Cola at 27.3 times are more expensive than Meta at 21.8 times and Microsoft at 29.3 times. Investors who buy a value fund expecting low multiples are getting a sector mix, not a bargain [1] [2].
- The real bargains sit where earnings are doubted. Verizon at 11.4 times and ExxonMobil at 26.5 times on a cyclically depressed earnings base (its quarterly operating margin fell to 6.4 percent in the March quarter) are cheap because the market questions the durability of their profits, which is what the HML factor has always captured [2] [3].
- Growth is priced for continued growth. Apple at 36.3 times and Nvidia at 34.3 times leave little room for disappointment, and Meta's flat performance since April despite 21.8 times earnings shows how quickly a growth stock is repriced when spending rises faster than revenue [1].
How investors may use the value vs growth data
The evidence favors treating value and growth as diversifiers rather than as a bet. The Fama-French factor data show long stretches in which each style leads, and the 2026 experience, with growth winning since April after a difficult first quarter, fits that pattern [3]. A practical approach is to screen within each style for the specific qualities that drive returns: revenue growth and margins on the growth side, and earnings durability and balance sheet strength on the value side. The DataPorium stock screener allows both screens on the same data, and DataPorium's ETF pages cover the value and growth index funds that hold the names above [2].
Market-based pricing is doing its job here. Companies that reinvest at high returns command high multiples; companies with cyclical or shrinking profits trade at low ones. The debate is not which style is right but whether the price paid for each set of prospects is fair, and that is a company-by-company question.
In 2026 the growth basket has outperformed since April, but the numbers show that value is a sector label and that several value stocks trade at higher multiples than the growth names they are compared with.
Key takeaways
- From April 7 to August 12, 2026, five large growth stocks averaged +18.1 percent and five large value stocks averaged +3.9 percent [1].
- Microsoft (+32.3 percent) and Nvidia (+25.8 percent) led; ExxonMobil (-2.5 percent) and Verizon (-3.4 percent) lagged [1].
- Value is not uniformly cheap: Johnson & Johnson trades at 30.3 times trailing earnings and Coca-Cola at 27.3, above Meta at 21.8 [1] [2].
- Verizon at 11.4 times is the only clearly low multiple in the group, and ExxonMobil's multiple reflects depressed cyclical earnings [2].
- The HML factor and index definitions describe styles, not bargains; price paid for each company's prospects is what matters [3] [4] [5].
Frequently asked questions
Are value or growth stocks doing better in 2026?
Since April 7, 2026 large growth stocks have done better, averaging an 18.1 percent gain versus 3.9 percent for large value stocks through August 12, although growth names such as Microsoft and Meta fell sharply earlier in the year.
What is the difference between value and growth stocks?
Value stocks trade at low prices relative to book value, earnings or sales, while growth stocks are selected for above-average earnings and revenue growth. Index providers such as S&P Dow Jones Indices use these measures to assign S&P 500 members to the Value and Growth indexes.
Why do some value stocks have high P/E ratios?
Style indexes classify companies by sector characteristics and relative measures, not by an absolute multiple. Stable consumer and health care companies such as Coca-Cola and Johnson & Johnson can be labeled value while trading at 27 to 30 times trailing earnings.
Should investors choose value or growth?
Long-run data show each style leading for extended periods, so most investors hold both and focus on the price paid for each company's growth and earnings durability rather than on the label.
Sources & References
- [1] DataPorium Stock Market Analytics (price history)
- [2] DataPorium Stock Screener (quarterly statements and ratios)
- [3] Kenneth R. French Data Library: Description of Fama/French Factors (SMB and HML)
- [4] iShares S&P 500 Value ETF (IVE) fund page
- [5] iShares S&P 500 Growth ETF (IVW) fund page
- [6] NVIDIA Corporation Form 10-Q for the quarter ended April 26, 2026 (SEC EDGAR)
