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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Blackstreet Capital Holdings, LLC is a Maryland, US-based diversified holding company that seeks investments in the debt and equity of lower middle market businesses, corporate orphans in out-of-favor industries, and businesses undergoing some form of transition.
Gunty and Berger have deep experience buying companies that are either underperforming, in out-of-favor industries or are undergoing some form of transition.
Even though you are buying stocks relatively cheap, the pickings are usually among out-of-favor industries or small cap companies with less liquidity.
Blackstreet Capital Holdings, LLC seeks investments in the debt and equity of lower middle market businesses, corporate orphans in out-of-favor industries, and businesses undergoing some form of transition.