U.S. growth stocks' P/E gap to value is nothing like 2000

Shares of faster-growing U.S. companies have yet to reach the “big top” versus cheaper stocks that many investors expect, in Bank of America Corp.’s view. The gap between price-earnings ratios for the Russell 1000 growth and value indexes shows as much, analysts Stephen Suttmeier and Jordan Youngwrote in a report Thursday. May’s widest P/E spread as of Thursday was 13.6 points, far from a peak of 46.5 points in July 2000, according to data compiled by Bloomberg. The smaller differential shows that growth stocks have room to rebound after slumping this week relative to value shares, they wrote.