Unloved Stock

AAA

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.

INVESTOPEDIA EXPLAINS '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. Investor

    Any person who commits capital with the expectation of financial ...
  2. Day Trader

    A investor who attempts to profit by making rapid trades intraday. ...
  3. Price-To-Book Ratio - P/B Ratio

    A ratio used to compare a stock's market value to its book value. ...
  4. Value Investing

    The strategy of selecting stocks that trade for less than their ...
  5. Intrinsic Value

    1. The actual value of a company or an asset based on an underlying ...
  6. Holding Period Return/Yield

    The total return received from holding an asset or portfolio ...
Related Articles
  1. Investing Basics

    The Five Biggest Stock Market Myths

    Stocks that go down must come up, right? Wrong. We bust this myth and four other common market misconceptions.
  2. Active Trading

    Warren Buffett: How He Does It

    We look at the Sage of Omaha's methodology for evaluating value stocks.
  3. Forex Education

    Using The Price-To-Book Ratio To Evaluate Companies

    The P/B ratio can be an easy way to determine a company's value, but it isn't magic!
  4. Options & Futures

    Finding Undiscovered Stocks

    Wall Street tends to focus on large cap stocks, leaving other stocks under-followed and undervalued.
  5. Investing

    The Art Of Selling A Losing Position

    Knowing whether to sell or to hold is tough. And no rule fits all. Find out what to consider.
  6. Options & Futures

    Guide to Stock-Picking Strategies

    There are many ways to make money, knowing how to choose the best stocks is one of them.
  7. Investing Basics

    What is the difference between an IPO and a seasoned issue?

    Learn how companies issue IPO securities when they first go public and seasoned issue shares if they sell more shares in the secondary market.
  8. Trading Strategies

    Is volatility a good thing or a bad thing from the investor's point of view, and why?

    Learn the basics of volatility in the stock market and how the increased risk provides greater opportunities for profit for both long- and short-term traders.
  9. Trading Strategies

    Swing Trading Indicators: For Those Too Impatient For Buy And Hold

    For investors who are too impatient for the buy and hold strategy, swing trading may be your thing--but seriously, be careful.
  10. Investing

    How do I take qualitative factors into consideration when using fundamental analysis?

    Fundamental analysis is the method of analyzing companies based on factors that affect their intrinsic value. There are two sides to this method: the quantitative and the qualitative. The quantitative ...

You May Also Like

Hot Definitions
  1. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  2. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  3. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  4. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  5. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  6. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
Trading Center