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value stock

A share of a company that is trading at a price lower than its intrinsic value or fundamental worth, often characterized by a low price-to-earnings ratio.
Noun
pl: value stocks

This term is specific to the domain of equity investing and describes a strategy focused on perceived bargains. It carries a connotation of stability and caution, contrasting with growth stocks, which are associated with high risk and rapid expansion. Investors seeking value stocks typically prioritize tangible assets and current dividends over future potential.

In financial discourse, the term is often used in the context of "value investing," a philosophy popularized by Benjamin Graham and Warren Buffett. It implies a disciplined approach to market inefficiency, where the investor believes the market has temporarily mispriced a company's true worth.

Meanings

Noun

A share of a company that is trading at a price lower than its intrinsic value or fundamental worth, often characterized by a low price-to-earnings ratio.

The investor focused on value stocks to find undervalued companies with strong dividends.

Examples

I prefer to invest in a value stock when the market is volatile.

Business

Maybe this value stock is actually a value trap.

Look for a value stock with a strong dividend history.

Business

He believes that every value stock will eventually reach its true price.

Why are you buying a value stock instead of a growth stock?

Why are you buying a value stock instead of a growth stock?

Business

The portfolio consists mostly of a few stable value stock holdings.

Business

I should check if this is a genuine value stock or just a failing company.

A classic value stock often has a low price to earnings ratio.

Business

She specializes in finding an undervalued value stock before the rest of the market notices.

She specializes in finding an undervalued value stock before the rest of the market notices.

Business

Related Words

Última actualización: May 2026Reportar un error