A value stock is a type of stock that is considered to be undervalued based on certain financial metrics, such as price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and dividend yield. Value stocks are typically associated with companies that have a strong track record of stability, a solid financial position, and a history of paying dividends. Investors who are looking for a long-term investment strategy often turn to value stocks because they believe that the market will eventually recognize the underlying value of the company and that the stock price will rise. Unlike growth stocks, which are associated with companies that are expected to experience above-average earnings growth, value stocks may not offer the same level of growth potential in the short term. However, value stocks may offer a higher dividend yield and provide a degree of stability to a diversified investment portfolio.