(MS) European Equyity Strategy - Update of Screening to identify Value Idea

--> Interesting Read. see full note attached

We update a number of our preferred stock screens to identify Value ideas at the company level.

We recently raised our weight in Value sectors The disconnect in performance between Cyclicals vs Defensives and Value vs Growth has been unusual, Value has lagged the improvement in macro newsflow, and valuations of Value vs Growth have only been lower 10% of the time in the last 40Y. If fundamentals continue to improve, bond yields were to rise, or inflation expectations increase, Value is likely to outperform.

We update our Buyers’ Compendium to identify stocks that still offer Value There are 67 stocks that appear on more than one screen, including 11 OW rated stocks: Statoil, Subsea 7, Wood Group, AMEC, ENEL, Tesco, EDP, Mitchells & Butlers, Software AG, Technip and Total.