Value Stock

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Dictionary Says

Definition of '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

Investopedia explains 'Value Stock'

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.

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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. The Value Investor's Handbook

    Learn the technique that Buffett, Lynch and other pros used to make their fortunes.

  3. Relative Valuation Of Stocks Can Be A Trap

    This method of valuing a company can make it look like a bargain when it is not.

  4. Warren Buffett: How He Does It

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

  5. Value Traps: Bargain Hunters Beware!

    Find out how to avoid getting sucked in by a deceiving bargain stock.

  6. Stock-Picking Strategies: Value Investing

    Learn how famed investor Warren Buffett finds winning stocks.

  7. Understanding The Ticker Tape

    We explain the meaning and use of that reel of symbols whizzing across your TV or computer screen.

  8. Whisper Numbers: Should You Listen?

    These unofficial forecasts hold the potential for insider insight - and investment risk.

  9. Translating Ticker Talk

    Stock tickers can say a lot about a company in just a few letters. Find out how to read them.

  10. Should You Be Afraid Of Dark Pool Liquidity?

    Don't fear the deep end. Dark pool liquidity can help drive down stock cost for everyday investors.
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