For value investors, a crucial goal is identifying undervalued—and underappreciated—companies to target before the broader market gains an interest and, in theory, corrects the delta between the share price and the true underlying value. Ideally, this would mean investing in shares of a company while that firm is flashing signs of being undervalued but before the stock price increases.
In reality, however, many such companies do not make it onto investors' radars until they have had some price movement—after all, there is no guarantee that the market will, in fact, correct a value stock's pricing to match its underlying value, nor that it will do so on any particular schedule. In this way, finding firms with a recent history of stock price growth but which also continue to present key value indicators may be the ultimate goal for some value investors.
