Value Stocks
Categories: Investing, Stocks, Company Valuation, Mutual Funds
Stocks that experts think are selling for less than they're actually worth.
These stocks are usually issued by companies that have been around for a while but that have fallen on tough times because of a sales slump, bad press, or alien invasion. Some people think they're actually better option than growth stocks because value stocks will eventually go up in value and you'll have gotten 'em for cheap.
But (of course there's a but) the risk here is that the stocks might not be undervalued. They may be priced low because a company is on a slide that will eventually lead to its bankruptcy, leaving you holding the bag.
Caveat emptor.