A stock that tends to trade at a lower price relative to it's fundamentals (i.e. dividends, earnings, sales, etc.) and thus considered undervalued by a value investor.

Common characteristics of such stocks include a high dividend yield, low price-to-book ratio and/or low price-to-earnings ratio.

A value investor believes that the market isn't always efficient and that it's possible to find companies trading for less than they are worth.

An easy way to attempt to find value stocks is to use the "Dogs of the Dow"  investment strategy look at the 10 highest dividend-yielding stocks on the Dow Jones at the beginning of each year and adjusting it every year thereafter.

Understand that is not Investment advice, only a way to research on Value Stock.

Value stocks generally have low current price-to-earnings ratios and low price-to-book ratios.

Investors buy these stocks in the hope that they will increase in value when the broader market recognizes their full potential, which should result in rising share prices. 

Thus, they hope that if they buy these stocks at bargain prices and they eventually increase in value, they potentially could make more money than if they had invested in higher-priced stocks that increased modestly in value.

Again evaluation on many moving parts should be considered before venturing into any Stocks.

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