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 ?
Carter bought the out-of-favor stock at an average cost of $55; it recently traded at $143.
David is not afraid to buy out-of-favor stocks and wait for improvement," Lutton said, in a statement.
The advisors employ fundamental research and strict valuation disciplines to identify undervalued and out-of-favor stocks.
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
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.
POSIT's liquidity can also help small investors, especially when trading obscure or out-of-favor stocks.