Out-of-favor industry or stock

(redirected from Out-of-Favor Stocks)

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 ?
David is not afraid to buy out-of-favor stocks and wait for improvement," Lutton said, in a statement.
In addition, his eight-member group, which does not belong to the NAIC, looks for undervalued or out-of-favor stocks.