January 11, 2023

Russell US Indexes Spotlight - January 2023

Quarterly report

Large-caps and Value prevail in grueling year for US stocks


  • Value carries the day in brutal year. The Value rotation went into high gear in the Q4 rally, particularly among large-caps, extending its advantage over Growth for the full year.
  • Large-caps retain edge vs small-caps. Large-caps regained the lead over small-caps in Q4 and lost less for the full year, buoyed by outperformances in Health Care, Energy and Staples.
  • EPS forecasts drift lower. Forward EPS forecasts continued to see downgrades into Q4, with the small-cap and Value indexes taking the biggest hits.
  • Valuations rebound in Q4. After a year of retrenchment, forward P/E multiples ticked higher across the Russell US indexes amid robust Q4 price gains.
  • A lackluster year for Russell IPOs. Despite a modest pickup in Q4, IPO activity dwindled to a trickle in 2022, in stark contrast to last year’s record pace.

Authored by FTSE Russell’s Global Investment Research team, this quarterly publication provides a deep-dive into the performance and key market drivers of US equities, viewed through the lens of Russell large-cap (Russell 1000), small-cap (Russell 2000), Growth and Value indexes. It's part of a series of reports, available by email as soon as they are published.

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