Value Stock
A stock that tends to trade at a lower price relative to it's fundamentals (i.e. dividends, earnings, sales, etc.) and thus considered undervalued by a value investor. Common characteristics of such stocks include a high dividend yield, low price-to-book ratio and/or low price-to-earnings ratio. Investopedia Says:
A value investor believes that the market isn't always efficient and that it's possible to find companies trading for less than they are worth. An easy way to attempt to find value stocks is to use the "Dogs of the Dow" investing strategy - buying of the 10 highest dividend-yielding stocks on the Dow Jones at the beginning of each year and adjusting it every year thereafter. Related Terms:
Dividend Yield
Dogs Of The Dow
Fire Sale
Growth Stock
Price-Earnings Ratio - P/E Ratio
Price-To-Book Ratio - P/B Ratio
Stock
Undervalued
Value Investing
Value Trap |