The hidden opportunity beyond the S&P 500’s mega-caps

A pricey S&P 500 (especially when set against a backdrop of inflation, high energy prices, and geopolitical uncertainty) can make the stock market look like a poor place to park new money. Josh Wein, portfolio manager of the Hennessy Cornerstone Growth Fund at Hennessy Funds, sees a more nuanced picture. He says the index's roughly 21-times-earnings valuation is heavily shaped by its largest companies, while many S&P 500 stocks, especially mid-caps, are actually trading at lower multiples.