Don't overlook the the financial sector as the stock market trends higher, according to Oakmark Funds portfolio manager and noted value investor BIll Nygren.
The Dow Jones Industrial Average closed above 40,000 for the first time on Friday, while both the Nasdaq Composite and S & P 500 entered Monday after four-week-long rallies.
Despite the financial sector outperforming the broader market, banking and consumer finance stocks are cheaper compared to all S & P 500 companies, according to Nygren.
The Financial Select Sector SPDR Fund (XLF) , which tracks the S & P 500 financials index, has returned 12.6% in 2024, including reinvested dividends, while the S & P 500 has returned less than 11.8%.
His portfolio's top holdings include some of the country's largest banks, such as Citigroup and Wells Fargo , as well as regional banks like First Citizens .
Persons:
BIll Nygren, Nygren, CNBC's
Organizations:
Dow Jones, Nasdaq, Citigroup
Locations:
Wells Fargo