Undervalued refers to a stock that is selling below the market value that the stock should have. This happens in many instances, but the most common is that a sector is dragged down by economic realities. For example, if the energy sector is down, most stocks will become undervalued. Sometimes these stocks don’t deserve the be undervalued, but they are drug down by negative sector sentiment.
Invest in up to 30 companies in one trade. Try Motif today and get a $150.
Disclaimer – The writers at Investment Hunting are not financial advisors. We are not licensed in the financial industry. Any and all information found on this site, including financial terms and definitions should be used for entertainment purposes only. For more information on Investment Hunting’s disclosures and disclaimers, please visit the Disclaimers page. As an investor, you need to take personal responsibility for any and all portfolio transactions. Always consult your financial advisor or trusted investment authorities before making any financial decisions.