A widely held stock that is preferred by typical and institutional investors. It represents businesses with strong earnings growth and future potential. This stock tends to sell at relatively high P/E ratios. Glamour stocks produce steadily growing sales and earnings over a long period of time. In bull markets, their prices usually rise faster than market indexes or averages. A glamour stock, although it is often classified as a blue chip stock, is characterized by a higher rate of earnings growth.

Typical investors tend to overbuy glamour stocks that have performed well, causing them to be overpriced. However, contrarian investors usually bet against widely embraced stock strategies (such as glamour stocks) by buying underpriced value stocks and selling overpriced glamour stocks.