Notable investor predicts 'the top of growth stocks' and identifies areas of opportunity.

• Ariel Investments' chair, Rogers, believes that the mega-cap tech stocks that excelled in 2021 are currently "overvalued."
• The investor is bullish on stocks tied to the housing sector.
• Rogers is discovering potential in the struggling media industry, which has faced challenges due to advertising concerns.

According to John Rogers of Ariel Investments, growth stocks may face challenges in 2024, making value stocks a better option.

According to Rogers, who spoke at the CNBC CFO Council Summit in Washington, D.C., the top of growth stocks is approaching. Rogers expressed this viewpoint strongly, saying, "I really, really do."

Ariel Investments' chair, Rogers, predicts that the tech stocks that excelled in 2021 may be "priced for perfection," and may face difficulties in 2024.

The investor is optimistic about value stocks as the difference in performance between growth and value increases. For instance, the Russell 3000 Growth index gained approximately 34% this year, while the Russell 3000 Value index rose more than 2%.

Rogers stated that the current gap in history is one of the largest recorded, giving him confidence that small value stocks will be the best option, and growth stocks will struggle in the upcoming year.

Although the value manager believes that growth stocks may still outperform in a declining interest rate environment, he predicts that the disparity between growth and value stocks is so significant that some undervalued companies could be missed by growth investors.

Rogers stated that there would be a significant chance to surpass expectations and acquire orphans in the next two years, despite the growth stocks' tailwind, as interest rates decrease.

The investor is optimistic about stocks associated with the housing market, including the home security company that has declined 35% this year and the flooring company that has fallen 14%.

Rogers is also discovering potential in the media industry, which has been hit hard this year due to advertising concerns. He values the company's extensive content library and diverse brand portfolio, as well as a shift in leadership mindset.

Rogers stated that the stock is valued at more than $40 per share and there's a significant opportunity present.

On Wednesday, Paramount shares, which have declined 14% this year, closed at $14.41.