what is a value stock 
a value stock is one whose share price is trading below what a fundamental analysis would otherwise indicate if an analysis of a company s fundamentals such as its earnings dividends cash flow operating income and so on indicates that its stock should be trading at a specific price and the share price is below that number it is considered a value stock if an investor purchased the stock at this lower price they would be getting a good value as the stock will most likely at some point correct and increase in price 