Goldman Sachs analysts argue value stocks will keep outperforming growth peers in early 2026. Their low-valuation gauge returned 15% in late 2025. The bank predicts U.S. economic growth will accelerate above 3%, which historically erodes the premium for high-quality, growth-oriented companies.

Faster economic activity typically benefits shares of established, financially solid companies trading cheaply relative to fundamentals. Since 1980, Goldman's value stock measure averaged 14% returns during 12-month growth spurts. This compares to roughly half that performance in stable or slowing expansion environments.

However, analysts Ben Snider and Ryan Hammond caution the coming rally will likely be more modest than the 35% surge seen in 2021 and early 2022. Persistent AI investment will keep earnings and valuation gaps wide, providing tailwinds for select high-growth pockets despite the broader value tilt.