Value Stocks

Value stocks are shares of companies that appear to be undervalued by the market relative to their intrinsic worth, often indicated by lower price-to-earnings or price-to-book ratios. Investors buy these stocks expecting that the market will eventually recognize their true value, leading to price appreciation. They are typically established companies with stable earnings, and the approach relies on the belief that the stock's current lower price reflects a temporary issue, providing an opportunity for profit as the company's fundamentals are recognized by the market over time.