Out-of-favor industry or stock(redirected from Out of Favor Stock)
Out-of-favor industry or stock
Out-of-Favor Industry or Stock
An industry or stock to which many analysts and investors do not pay attentions. Out-of-favor industries or stocks tend to have a low price-earnings ratio and may therefore be undervalued. That is, the low price does not necessarily come from a fundamental problem with the company, but may result simply from apathy on the part of investors. Value investors sometimes seek out-of-favor industries and stocks for long-term investments.