Stocks Intermediate: Value Stocks

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1.
Value investors aim to buy several months after a turnaround in a stocks performance.
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False. Value investors aim to buy right before an expected turnaround in a value stocks performance.
2.
Stock from which of the following companies is most likely to be undervalued and might warrant additional research?
Choose wisely. There is only one correct answer.
A company that has just reported its first drop in annual earnings in a decade. The decline may be temporary.
3.
Which of the following factors is least likely to indicate a value stock?
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A low book value. A low book value indicates low net assets, which could have a negative impact on future earnings growth.
4.
Which of the following is an example of a non-cyclical industry?
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Health care. This industry tends to react less to economic changes than many cyclical industries do.
5.
A stock issued by a company with a large debt load is likely to be a value stock.
Choose wisely. There is only one correct answer.
False. A stock issued by a company with a large debt load may lack the resources to increase future earnings.