Why Australian value stocks are suddenly impossible to ignore

InvestorDaily

Australian value stocks have extended their resurgence, outperforming growth shares by the widest margin in more than 16 years as higher interest rates and shifting sector dynamics continue to reshape the local equity market. Analysis from S&P Dow Jones Indices found the S&P/ASX 200 Value Index returned 20.2 per cent in the 2026 financial year, beating the broader S&P/ASX 200 by more than 14 per cent and the S&P/ASX 200 Growth Index by more than 25 per cent. According to the research, the result marked the index’s strongest one-year relative outperformance since at least 2010.

The analysis, Don’t Call It a Comeback: Value’s Ascendance Continues in Australian Equities, said the trend has persisted well beyond a short-term market rotation. Over the five years to 30 June 2026, the S&P/ASX 200 Value Index outperformed the S&P/ASX 200 Growth Index by more than 53 per cent on a cumulative basis, while consistently delivering more than 7 per cent annual outperformance across rolling five-year periods throughout the 2026 financial year. Director, global exchange indices at S&P Dow Jones Indices, Sean Freer, said the shift towards value investing began during the COVID-19 pandemic and has continued throughout the current higher interest-rate environment.

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