cult stock

plural cult stocks

1. A stock in a failing company whose price per share is inappropriately high because the company used to be a market leader or previously had a well-known popular product.

   With a loyal core investor following, cult stocks inherently trade at a premium.

   2008, Thomas J. Lauria, Investor Relations, page 52

   2 more examples

   With the demise of the dot-coms, you can make a strong case that a chain of doughnut shops has become America's favorite cult stock.

   2002 July, David Landis, “Sometimes, You've Just Got To Let Go”, in Kiplinger's Personal Finance, volume 50, number 7, page 42

   Cult stocks like Palm and Sun Microsystems can exist on air for years because they have cash and a history even if their market share shrinks and their prospects dim.

   2009, Michael Shulman, Sell Short: A Simpler, Safer Way to Profit When Stocks Go Down