Value Stocks

The search for value is key 🔍 But some stocks have already earned this label 👀Let’s explore why.

Did you know that stocks have many different types of values? 🤔

Stocks have a stock price, intrinsic value and potential future values 🤯

Only the stock price is set, but even that changes all the time 🏷️

Intrinsic value and the potential future value are subjective though 😥

So, some investors try to identify stocks that will be valuable in the future and worth more than their current price! 💡

To be exact, value stocks are stocks of companies that are trading at a lower price compared to their intrinsic value 📈

Investors who invest in value stocks are looking for companies that they believe are undervalued by the market 💰

Value stocks are usually from companies that have been in the market for a while and have a history of stable earnings 💪

Investing in value stocks requires patience and research as it may take time for the market to recognize the company's true value🔍

One advantage of investing in value stocks is that they can provide a margin of safety, as they are already trading below their intrinsic value 🛡️

Another advantage is that they may have lower volatility compared to growth stocks 📉

However, one downside of investing in value stocks is that they may not experience significant price appreciation in the short term 📉

In addition, there is no guarantee that the market will recognize their true value 💸

Even though finding value stocks can be hard, some of the most famous investors believe in value investing and value stocks 🚀

Test your knowledge

Value stocks cost less than their

Choose an option

What is an advantage of investing in value stocks?

Choose an option

What is a potential downside of investing in value stocks?

Choose an option

What's next?

Featured Lessons