Unloved Stock

DEFINITION of 'Unloved Stock'

A stock that is out of favor with investors. The term unloved stock often refers to stocks that were once popular with investors but have become largely ignored due to a variety of factors. These factors include poor performance, too much volatility, changing regulations, new management, lowered or suspended dividends, inconsistent earnings from quarter to quarter, share price, the company being viewed as too risky or has taken on too much debt or the company simply fell out of favor with investors who decide to sell, resulting in falling stock value. An unloved stock may rebound, or its price could continue to drop and/or trade under decreased volume.

BREAKING DOWN 'Unloved Stock'

Unloved stocks are those that once enjoyed investor attention, but now are disregarded by investors and analysts. Investor attention could be the result of interest brought on by various media sources, or popularity fueled by high-profile investor recommendations. For example, if famed-investor Warren Buffett invests heavily in a relatively unknown company, that company will likely enjoy increased investor attention, resulting in higher trading volume. While some of these ignored stocks do make a comeback and rally to their former popularity, others slowly attract less and less attention. Unloved and out of favor stocks may be sought by value investors who step in and buy stocks while other investors are selling, often at very low prices. Value investing is a strategy that involves selecting stocks that are trading for less than their intrinsic values.

RELATED TERMS
  1. Unloved ETF

    An exchange-traded fund that has at least six months of trading ...
  2. Growth Stock

    Shares in a company whose earnings are expected to grow at an ...
  3. Equity Market

    The market in which shares are issued and traded, either through ...
  4. Large-Value Stock

    A type of large-cap stock investment where the intrinsic value ...
  5. Dollar Volume Liquidity

    A stock or exchange-traded fund's share price times its average ...
  6. Hold

    An analyst's recommendation to neither buy nor sell a security. ...
Related Articles
  1. Investing

    Insiders Are Buying These 3 Unloved Stocks

    ...
  2. Investing

    A Breakdown on How the Stock Market Works

    Learn what it means to own stocks and shares, why shares exist, and how you buy and sell them.
  3. ETFs & Mutual Funds

    Value Investing Strategies in a Volatile Market

    Volatile markets are a scary time for uneducated investors, but value investors use volatile periods as an opportunity to buy stocks at a discount.
  4. Investing

    Stock-Picking Strategies: Value Investing

    Value investing is one of the best known stock-picking methods. In the 1930s, Benjamin Graham and David Dodd, finance professors at Columbia University, laid out what many consider to be the ...
  5. Managing Wealth

    4 Things That Make a Stock a Risky Bet

    Risk is everywhere and when it comes to stocks it can take many forms. From price risk to volatility risk, there’s a lot investors have to look out for.
  6. Markets

    Income, Value and Growth Stocks

    Investors who buy stocks generally seek one of three criteria: undervalued holdings, growth potential or steady income. The characteristics of stocks in each of these categories differs accordingly.
  7. Markets

    Why Do Companies Care About Their Stock Prices?

    Read on to learn more about the nature of stocks and the true meaning of ownership.
  8. Managing Wealth

    Value Investing: Finding Undervalued Stocks

    There are two basic steps to finding undervalued stocks: developing a rough list of stocks you want to investigate further because they meet your basic screening criteria, then doing a more in-depth ...
  9. Investing

    4 Signs Your Value Stock May Be Overvalued

    Value investing can make you money, but you have to look for traps. Overvalued stocks often correct, which means investors need to know when to get out.
  10. Investing

    What Are Stocks?

    Stocks are one of the most popular financial instruments in the world, but what does a stock actually represent? Find out how and why stocks are created, and what buying a stock means for investors. ...
RELATED FAQS
  1. Do stocks that trade with a large daily volume generally have less volatility?

    Stock volatility refers to a drastic decrease or increase in value experienced by a given stock within a given period. There ... Read Answer >>
  2. Should I sell my shares if a company suspends its dividend?

    Understand the implications of a company suspending its dividend, and identify when it is a good idea to dump that company's ... Read Answer >>
  3. If I believe retail sector companies are overvalued how can I profit from a fall ...

    Examine the various trading strategies that can be employed by an investor who anticipates a decline in stock prices in the ... Read Answer >>
  4. What is the difference between the equity market and the stock market?

    Discover the basic information about the equity, or stock, market and the two primary classifications of equities that are ... Read Answer >>
  5. Why is an increase in capital stock on a company's balance sheet a bad sign for stockholders?

    Understand what capital stock represents for a company and understand the significance for investors when a company initiates ... Read Answer >>
  6. What are the best indicators for evaluating technology stocks?

    Technology stocks are often some of the most discussed stocks on the news. How can investors spot the company that will roll ... Read Answer >>
Hot Definitions
  1. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment ...
  2. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  3. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  4. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  5. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  6. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
Trading Center