What is Value Stock?
Sometimes referred to as under-value stocks, the idea behind the value stock has to do with getting a bargain. A value stock is a good stock option that is currently trading at a lower unit price than is indicated by the fundamentals associated with the option. Value stocks are considered to be growth stocks that are in a current slump, but have all the earmarks of entering into a period of growth within a short period of time. There are several factors that help to identify a value stock. First, the current trading price will be lower than indicated by such fundamental factors as the current rate of sales, earnings, and dividends that are associated with the issuer of the stock offering. Second, the stocks are being traded on a price to earnings ratio that is lower than the market average for similar stocks. This difference may be understood to be occurring due to falling prices that are expected to turn around in the short term. If that is the case, the stock can be identified as val
