It’s too early to call it a trend, but it’s a start. Recent trading has seen an embrace of value stocks, something that has been rare in the market for the last several years, suggests Chuck Carlson, editor of DRIP Investor.

To be sure, the recent history of “value versus growth” has been one of sharp but not necessarily lengthy rallies in value stocks and long periods of outperformance by growth stocks, and it is possible that the market could return to growth following this recent pop in value stocks. However, some factors exist that potentially favor value:

* The sharp bounce in bond yields was probably the least expected event to occur given sentiment on interest rates a month ago, and that bounce has helped some value sectors, notably financials.

If trade fears ease and investors become more comfortable with an economy that doesn’t appear to be tanking, you could see further rise in yields, which would be a plus for certain value sectors of the market.

* The performance gap between growth and value had reached almost historically high levels, so some “mean reversion” was expected.

* With the dividend yield on the S&P 500 Index slightly above the yield on a 10-Year Treasury, it is likely income investors will be looking to dividend payers — many of which fall in the value camp — as a source of cash flow. The recent pop in value stocks points to the idea that prudent portfolio construction should include value components.

Among value stocks, I remain a fan of financials, including J.P. Morgan Chase (JPM) and Regions Financial (RF), a leading regional bank. The shift to value should also help some severely beaten down stocks, such as Walgreens Boots (WBA).

Finally, the energy sector could benefit from strength in value stocks. In this sector, I especially like Chevron (CVX) and Exxon Mobil (XOM).

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