Value Momentum

Value momentum refers to the phenomenon where stocks that are undervalued or trading at a lower price relative to their true worth tend to see increasing investor interest over time, leading their prices to rise. Conversely, stocks that are overvalued may see their prices decline or stagnate. Essentially, it's the idea that buying undervalued stocks and holding them can result in better returns as their prices correct over time, while momentum—the trend of past price performance—can reinforce this movement, making undervalued stocks more likely to continue appreciating in value.