In a recent interview with CNBC, Stifel chief equity strategist Barry Banister shares his thoughts on the value rotation and what it means for the valuations.

Here are highlights from his comments:

• “We like value over growth for a cyclical recovery.”
• Banister said Stifel expects value to outperform growth by 40% cumulatively through 2024.
• He favors financials as they represent “great yield vehicles” with strong capitalization and liquidity, as well as industrials, for their earnings growth and reasonable valuations.
• Over time, says Banister, valuations will compress back toward low 20s while earnings and growth stocks will continue to be flat.