Stocks selling at low prices in relation to company assets, sales and earnings power (the kind of stocks favored by "value investors").
Stocks that have a lower-than-average price as measured by such metrics as price-to-earnings or price-to-book ratios. Value investing is often considered the opposite of growth investing, which concentrates on finding companies with above-average sales and earnings growth prospects.
These are stocks in companies that, for one of many reasons, are undervalued. They are stocks that are selling at a low price, but when analyzing the company's sales, earnings and looking at other factors, give indications that they should be selling for a higher per share price.
Overlooked or under performing companies t have a low price to earning ratio (P/E), and are trading at relatively low prices compared to their earnings. Variable Annuity - An annuity contract whose growth and subsequent income payout are based on the performance of the securities held in the underlying sub-accounts selected by the contract owner. All income and capital gains produced by the sub-accounts are tax-deferred.
Value stocks tend to be inexpensive based on various measures of their intrinsic or private market value, such as current earnings or total assets. The market is not willing to pay more for them because they are from companies that are out of favor for some reason. The job of value managers is to identify companies poised for a turnaround, leading to rising earnings and higher stock prices.
Investors employing a value investment style buy stocks of companies they believe are under-priced based on their fundamental ability to generate earnings, in anticipation that the price performance of the stock will reverse. Value stocks are often characterized by low valuation ratios (e.g., price-to-earnings ratios). See also: growth stocks.
Stock in companies that are considered to be temporarily undervalued. People who shop and read the newspapers will have their guesses of what are value stocks. The sellers of mutual funds often claim that they deserve high fees because they have an inner eye, voodoo, or a scientific analysis that gives them the secrets of what stock are undervalued. . . .
Companies whose stock price is a good value relative to their total worth.
Stocks with low price/ book ratios or price/earnings ratios. Historically, value stocks have enjoyed higher average returns than growth stocks (stocks with high price/book or P/E ratios) in a variety of countries.
Stocks deemed to have current intrinsic value, with less regard for future potential. Such stocks are often on low PERs with above average dividend yields. They may also have relative high levels of asset backing supporting the share price.
Stocks which are perceived to be selling at a discount to their intrinsic or potential worth; i.e., ‘undervalued,’ or stocks which are out of favour with the market.
Stocks that are considered to be inexpensive, based on measures relative to their market value, such as current earnings or total assets. Often, these stocks are considered out of favor or "undervalued" by the market for some reason (see Undervalued).