Undervalued

What is it? A stock that is potentially worth more than the market currently recognizes. An undervalued stock has a lower price-earnings ratio than other stocks in its industry or the market as a whole. Value investors seek out quality companies with relatively low P/E ratios. These investors plan to hold the stocks for the long-term, betting that the stock price eventually will rise to reflect the company?s performance.

Added By: Gianna

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