Value stocks: A dynamic approach in a changing world

US equities value investing is evolving as managers look beyond traditional historical measures and focus more on what companies can deliver over the next few years.

While price-to-book remains useful, a broader set of valuation tools can help identify businesses that may offer better long-term resilience in a fast-changing market.

Health care stands out as an area where valuations have become attractive, creating potential opportunities in high-quality companies with durable fundamentals.

For investors with a 3- to 5-year horizon, this may be a compelling way to seek value while balancing the risks that come with sector shifts and changing market conditions.