For the past decade-plus, the performance record has favored growth stocks over value. Yet the tide may be changing. In 2025, value stocks and growth stocks had similar returns, with growth advancing 13.8% and value returning 13.6%. More than halfway through 2026, value stocks have climbed 16.8% while growth stocks have returned 5.7%. The post COVID-19 economy gave a lift to some of the cyclical companies (energy and regional banks), and value stocks outpaced growth stocks that year. While growth stocks led for a few years after that, history has shown other instances where value stocks have outperformed. Value stocks tend to be more resilient in times of market uncertainty and higher volatility as they are less likely to overreact to economic news. Another factor, in our view, has been the level of interest rates. If interest rates are high, discount rates will be high, and future profits will be worth less, creating an unfavorable environment for growth stocks. In any event, the value sector is the place to achieve income.

Chevron is the third largest of the world's five 'super majors.' The company is the result of the 2001 merger of Chevron Corp. and Texaco Inc. The company's operations range from energy exploration and production to refining and retail marketing. Australia, Southeast Asia, and West Africa are significant international production centers for the company. Chevron stock is a component of the S&P 500 and currently employs 43,039 people.

Stocks are trending lower at midday, though not meaningfully so. Traders are parsing the latest earnings reports but also are mindful of the deadlock in place for the Strait of Hormuz.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.