How do glamour stocks differ from value stocks?

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Glamour stocks will the mean that those stocks which will be flavour of the markets and those stocks will be bought by a majority of the investors by herd following and certain fundamental change in the structure of those companies and they will be trying to put out various information to attract whole lot of new investors and such stocks will be the taste of the retail market.

Value stock means those stocks which are having a value in them because their intrinsic value is higher than the current market price of the share and it will make them a good candidate of being bought by various investors because those are value investors and they will be trying to capitalise on the difference between the value and the price of those stocks.

Glamour stocks are generally overpriced stocks because they will be running ahead of the fundamentals and they will be awarded with the higher price to earning whereais value stocks will be awarded a lower price to earning and they will be undervalued stocks.

Example of glamour stock could be Tesla in the current market and example of value stock could be Walmart.

jeff jeffy answered 1 year ago

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How do glamour stocks differ from value stocks?

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Expert Solution

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