Undervalued large firms

Value investors believe that some stocks are underpriced in the market and have the potential to rise when their “true” value is recognized by other investors. Most simply: Value stocks are viewed as a bargain relative to company fundamentals. So, while a company’s earnings and growth prospects may be solid, the stock trades at low price-to-book (P/B) or price-to-earnings (P/E) multiples. Investors typically look to value stocks for steady dividends or because they believe their prices will rise in the future.