Questor: Investors are still wrong about this defence company even after its price surge

Stock market valuations are usually wrong. Just because a company’s shares have risen significantly does not necessarily mean it is an attractive or sound business. It simply means it is popular among investors at that particular moment in time. Likewise, stocks that have fallen heavily in price are not necessarily low-quality companies. They are in fact just unpopular among the investment herd at a specific point in time.