Undervalued stocks offer long-term growth potential, often due to overblown short-term concerns. Value traps appear cheap but have issues like diminished growth prospects or increasing competition.

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Thomas J Catalano is a CFP and Registered Investment Adviser with the state of South ...