Out-of-favor industry or stock

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Out-of-favor industry or stock

An unpopular industry or stock that usually has a low price-earnings ratio.

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.
References in periodicals archive ?
Often, good companies take it on the chin just because they are in an out-of-favor industry.
Discounted market valuations and low price-to-earnings ratios, common for companies in out-of-favor industry segments.
JLL recently closed its Fund IV which will primarily invest in fundamentally good businesses that require capital to grow, or that need to address a variety of challenges, including an over-leveraged balance sheet, inadequate access to capital, operating in a temporarily out-of-favor industry or an inability to take advantage of consolidation opportunities.
Such stocks often have low price/earnings ratios, are usually in an out-of-favor industry, trade close to book value, and have small institutional ownership.
attributes its growth to identifying undervalued companies; often in out-of-favor industry sectors.