Value Legend Bill Miller Just Bought Shares in These 2 Stocks

Value stocks have outperformed growth stocks across the board so far in 2026, and that shouldnʻt be too surprising to market watchers.

Growth stocks had become overvalued after a three-year bull market, and investors decided to either cash out or rotate into safer investments, including cheaper value stocks.

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The outperformance gap widens for mid-caps and small-caps. The Russell 1000 Value Index has returned about 8% year to date, compared to a flat return for the Russell 1000 Growth Index. The Russell 2000 Value Index is up 12%, compared to an 8% YTD return for the Russell 2000 Growth Index.

Investors looking for good value stocks in uncertain times may want to take a cue from one of the most famous value investors, Bill Miller, and his firm, Miller Value Partners.

Miller made his name at Legg Mason, gaining recognition for beating the S&P 500 for 15 straight years. He then launched Miller Value Partners, which his son Bill Miller IV now runs. The legendary father remains an advisor and minority stakeholder.

In the first quarter, the firm made two notable additions to its Deep Value strategy -- Bloomin' Brands (NASDAQ: BLMN) and Crescent Energy (NYSE: CRGY).

Gas and restaurants

As a deep value manager, Miller looks for stocks with depressed prices that it views as mispriced. Often, they are stocks that are undergoing turnarounds or transformations, priced below their value with long-term potential.

Bloomin' Brands, a restaurant company that owns Outback Steakhouse and Carrabbas, among others, would certainly qualify as all of the above. The stock has been in a downward spiral for years, posting an average annualized return of -28% per year over the past five years. The stock is trading at about $6.00 per share.

The company has been in turnaround mode since activist investor Starboard Value took a 9% stake in the company two years ago. It also hired a new CEO focused on executing the Starboard turnaround plan that calls for enhancing the balance sheet, investing in technology and systems, streamlining operations and productivity, enhancing the menu, and remodeling the Outback restaurants.

"Near-term risk is ongoing revenue and margins headwinds from adverse weather and rising beef costs," Miller management wrote in the first-quarter investor letter, and that is baked into its depressed share price. But the stock is trading at about 6 times forward earnings and 80% below its all-time high.

Miller sees the potential for $500 million in adjusted EBITDA, up from the current $270 million from the turnaround and the potential upside being "multiples of the current share price."

Crescent Energy, an oil and gas and exploration company, is also cheap, trading at 8 times forward earnings. Unlike Bloominʻ Brands, Crescent stock has been surging, up 61% year to date, spurred by rising oil and gas prices. The share price had been down last year on weaker commodity prices and the acquisition of Vital Energy, which added to its debt.

But Miller notes managementʻs history of buying discounted assets, and it sees Vital "improving acquired company operations, removing excess costs, driving down development
costs, and enhancing well productivity." It also brings Crescent into the Permian Basin in Texas.

Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.