Shares of a company with solid fundamentals that are priced below those of its peers, based on analysis of price/earnings ratio, yield, and other factors.
Compare with growth stock
Example sentencesExamples
‘A lot of tech stocks are going out of fashion, so they may eventually become value stocks,’ he says.
Tech companies have suddenly become value stocks.
The equity portion of the portfolio included a mix of value stocks, large caps, and dividend-paying stocks to produce income and limit risk.
Since March, growth stocks have risen faster than value stocks.
But there is some good news for the more prudent investor: it is possible to buy good value stocks at the right price.
Definition of value stock in US English:
value stock
noun
Finance
Shares of a company with solid fundamentals that are priced below those of its peers, based on analysis of price/earnings ratio, yield, and other factors.
Compare with growth stock
Example sentencesExamples
The equity portion of the portfolio included a mix of value stocks, large caps, and dividend-paying stocks to produce income and limit risk.
But there is some good news for the more prudent investor: it is possible to buy good value stocks at the right price.
Tech companies have suddenly become value stocks.
Since March, growth stocks have risen faster than value stocks.
‘A lot of tech stocks are going out of fashion, so they may eventually become value stocks,’ he says.