Value stocks? Or zombie traps?
“Are Boeing, Delta, and Exxon ‘zombie companies’ or value stocks?” asked Wayne Duggan at Benzinga. Analysts and traders often use the phrase “zombie companies” as a way to describe companies that are laden with debt and “would not be surviving without financial support from the government.” This year, with the Fed’s corporate bond–buying program keeping many companies afloat, the number of ‘zombies’ has multiplied. But the term is thrown around so often that it can mislead investors looking for value stocks that “could make for excellent recovery plays.”
