Accio Biz

Value Stocks

Value stocks are shares in companies that are considered undervalued compared to their intrinsic worth. Investors typically identify these stocks through various financial metrics, such as low price-to-earnings (P/E) ratios, low price-to-book (P/B) ratios, or high dividend yields. The underlying belief is that the market has overreacted to the company’s recent challenges, resulting in a lower stock price that does not reflect the company’s potential for future growth or profitability. Value investors seek to buy these stocks at a discounted price, with the expectation that as the market corrects itself, the stock price will increase, allowing for profit upon sale. The strategy often involves a long-term holding period and a focus on fundamental analysis rather than market trends.