value stocks
Underpriced equity investments
Value stocks are shares in companies considered underpriced relative to their fundamentals—earnings, dividends, or assets.
Investors buy them expecting the market to eventually recognize their true worth: Value stocks tend to outperform during economic recoveries.
The strategy contrasts with growth investing, which favors companies expected to expand rapidly regardless of current valuation.
- undervaluedRated below true worth
- bargainFavorable purchase price
- dividendCorporate profit share
- dividend yieldDistribution as price percentage
- earningsMoney gained from work
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