In a recent article for The Globe and Mail, Validea CEO John Reese discusses the hefty divergence between growth and value stock performance so far this year and offers insights as to the various factors at play.

He references the current market’s stretched valuations, noting that “it may be hard to see value” given that the market multiple is above its historical average. “But remember,” he argues, “a big driver of that is the overweighting and outperformance of a handful of big tech stocks.” Reese suggests that investors with a long-term view might consider “strategically shifting, or tilting, some of their portfolio to value stocks at this point.”

Using the stock screening models Reese created based on the investment strategies of market gurus, he identifies the following high-scoring value names:

• United Natural Foods (UNFI) is a distributor and retailer of natural, organic and specialty products that earns high marks for its price-earnings and price-book ratios. View full Guru Analysis.
• Kelly Services (KELYA), a staffing company, scores well based on its low price-sales ratio. View full Guru Analysis.
• DSW Inc. (DSW) a footwear retailer, has seen a decline in its price-earnings and price-sales ratios as pressure continues on the retail industry, which has led to elevated scores from our value models. View full Guru Analysis.