InsiderFlow › Glossary › What are value stocks?
Value stocks trade cheaply relative to earnings, assets or cash: out-of-fashion companies the market prices at a discount.
The value investor hunts for forgotten quality: solid businesses with low P/Es, generous dividends, often in boring sectors — banks, energy, industrials. The bet is that pessimism is overdone and price will drift back toward value.
It's the school of Graham and Buffett. The opposite danger is the "value trap": a stock that looks discounted but is cheap because the business is genuinely dying.
On InsiderFlow these concepts come alive on real data: what big funds and insiders are buying, explained every day.
They alternate over long cycles: value dominated 2000–2007, growth 2010–2021. Many portfolios hold both.
Structurally declining earnings, a shrinking industry, rising debt: the discount is real, but deserved.