Value Trap

What Does Value Trap Mean?
A stock that has experienced a large price depreciation and is mistaken to be a value stock.

Investopedia explains Value Trap
When a company's stock seems undervalued,  investors are sometimes drawn into purchasing it in hopes of a stock price appreciation. If stock price is the only factor an investor looks at before buying a stock, he or she could end up with a stock whose value is likely to decline even further.