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 ?
Exposure to Lee's picks fits nicely into his contrarian strategy of choosing out-of-favor stocks with low price-to-earnings ratios.
The advisors employ fundamental research and strict valuation disciplines to identify undervalued and out-of-favor stocks.
The managers employ a contrarian growth strategy that leads them to own out-of-favor stocks alongside more traditional investments, which has proved to be quite profitable in 2003, three years into a bear market.
In addition, his eight-member group, which does not belong to the NAIC, looks for undervalued or out-of-favor stocks.
Undervalued and out-of-favor stocks with positive change -- Stocks that have demonstrated superior returns during periods of "market stress" -- Companies with strong financial positions, including the ability to generate free cash flow in excess of dividend and capital spending requirements -- Companies with shareholder-oriented managements
First Eagle Overseas Fund focuses on small- and mid-cap equities, and its strict value approach provides exposure to out-of-favor stocks.
Crabbe, whose contrarian method leads him to out-of-favor stocks he believes are selling at prices close to their intrinsic values, was well aware of the price the Special Fund was paying in short-term performance.
The team focuses on out-of-favor stocks and looks for catalysts to unlock the intrinsic value in a three-to-five-year time frame.
POSIT's liquidity can also help small investors, especially when trading obscure or out-of-favor stocks.
Portfolio constituents are likely to include younger companies with above-average revenue and profit growth, balanced by out-of-favor stocks that may have become depressed due to economic circumstances the managers deem as temporary.
Value Fund seeks to provide long-term growth of capital and income by investing primarily in undervalued or out-of-favor stocks.