Value stocks offer bargains outside AI and IPOs

What happened: Value stocks are presenting bargains as investors focus on AI and IPOs. Chubb (NYSE: CB), a global insurer, trades at just 12 times earnings, well below the broader market. Unitil (UTL), a utility company, is an investment opportunity beyond the tech sector, according to Heartland Advisors. Intuit and Disney are retirement portfolio sweet spots, combining oversold momentum with undervalued fundamentals and dividends. Mid-cap and small-cap value stocks, including iShares Russell 1000 Value ETF (IWD), are outperforming the S&P 500. MetLife (NYSE: MET) and Macy's (NYSE: M) are also attractive value plays. Billionaire investors like Bill Ackman and Seth Klarman are betting on overlooked quality names and value stocks.

Market impact: Value stocks across various sectors are benefiting from a shift in investor focus away from growth and tech. This trend is driven by valuation repricing as investors seek bargains in undervalued companies. The outperformance of mid-cap and small-cap value stocks indicates a broader market trend favoring value. Specific companies like Chubb, Unitil, Intuit, Disney, MetLife, and Macy's are seeing increased interest from investors.

What to watch next: On July 28, 2026, Chubb reports earnings, which could validate its undervalued status. On August 15, 2026, Unitil reports earnings, providing an update on its growth prospects. Additionally, investors should monitor the performance of the iShares Russell 1000 Value ETF (IWD) as a broad indicator of value stocks' momentum. These catalysts will help determine if the value stock narrative continues to gain traction.