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A stock that is ignored by research analysts and as a result may be trading at low price earnings ratios.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
A stock that is not often tracked by analysts. This may be because it is not very well known or because it belongs to an industry that is generally performing poorly. As a result these stocks have low demand and often a low price. Some value investors recommend buying orphan stocks because they could be undervalued. However, because demand is low, orphan stocks have low trading volume and a small change in demand may result in volatility in price. An orphan stock is also called a wallflower.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved