Investopedia

Continue to Site »

Unloved Stock

Filed Under »
Dictionary Says

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 Says

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.

Articles Of Interest

  1.

    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!

  2. Finding Undiscovered Stocks

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

  3. The 5 Biggest Stock Market Myths

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

  4. 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.

  5. Warren Buffett: How He Does It

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

  6. Guide to Stock-Picking Strategies

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

  7. Sell In May – Yay Or Nay?

    Seasonal timing in the market, best personified by the adage, “Sell in May – Go away,” has long been the subject of debate among investors. The question remains: Is there anything to it?

  8. 6 Popular ETF Types For Your Portfolio

    Exchange traded funds are an extremely popular diversification tool that can protect your portfolio during troubled periods.

  9. Women And Investing: It's A Style Thing

    You don't have to be a boy or act like a boy to win. In fact, doing the opposite could be better for your financial health.

  10. Portfolio Growth Strategies

    There are many ways to grow a portfolio, and the best approach for a given investor will depend upon various factors.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Validation Period

    The amount of time necessary for the premium on an insurance policy to cover the commissions, the cost of investigation, medical exams and other expenses associated with the issuance of the policy.

  2. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  3. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  4. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  5. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  6. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
Trading Center