Wallflower Stock Law and Legal Definition
Wallflower stock is a stock that has fallen out of favor with investors. These stocks are neglected by research analysts and infrequently recommended. A wallflower stock may have strong fundamentals and favorable growth rates but trade at a discount to comparable companies because only a few investors know about the company. As they are followed by very few investors, such stocks tend to trade at low price/earnings ratios. Wallflower stocks are mostly companies with small market capitalizations or companies that are thinly traded. Wallflower stock is also known as orphan stock.