Stocks can be generally classified into two categories -- growth stocks and value stocks. Growth stocks are usually thought of as those that have above-average earnings growth rates, while value stocks are loosely considered to be those with below-average growth and relatively low valuations.
There is some gray area here. Some stocks are clearly value stocks -- mainly long-established companies with steady profitability and revenue growth year after year. Coca-Cola fits this description and is a good example of an obvious value stock. However, there are some that can fit into either category.
And it's important to keep in mind that just because a stock is classified as a "value stock," that doesn't necessarily mean that it's a good value. The methods of evaluating and choosing value stocks can be quite complicated if you want to find the best bargains for your own portfolio.
Source Fool.com