The past decade hasn’t been kind to devotees of legendary value investor Benjamin Graham. Value stocks, underpriced relative to corporate fundamentals, have trailed the broad market as investors embraced growth stocks, notably the so-called FANGs, or Facebook, Amazon.com, Netflix, and Google, now known as Alphabet.

These highfliers powered the Russell 1000 Growth index to a 5.7% total return last year, nine percentage points ahead of the Russell 1000 Value index, marking the widest performance gap since 2009.

The...