These are the top 6 factors to identify a value stock:
1. Market leader
Does the company sell a particular type of product at a higher volume than its competitors?
2. Several streams of income
Does this company have other ways of generating revenue beyond its initial product offering?
3. Big backlogs, if manufacturing company
Does it have a lot of future orders that have not been filled?
4. Strong cash-generating capability
Does the company consistently produce cash flows from its ongoing operations?
5. Established operations
Does the company have good systems in place so it runs smoothly?
6. Large institutional ownership
Does the company have a substantial amount of stock owned by large entities that manage funds on the behalf of others?
Sven Franssen