Laggard

Laggard refers to investments that are underperforming compared to a certain benchmark or related securities. For example, a utility stock may underperform compared to other utility stocks in a specified time period, and be known as a laggard.

Some investors prefer to avoid laggards, assuming that stocks lag for a reason and it would be better to buy stocks with better relative strength. Other investors buy laggards after careful research, believing they are undervalued.