If you want to show/display out of stock products in magento than follow this:

Magento has several criteria for determining if an item should be visible in the store, but one of these is not whether or not the item is in stock. Magento can manage your stock and will set your stock status to “Out of Stock” for you, but what if you want these out of stock items to be hidden from the store.. automatically? Also, in my case I do not want to “disable” the item because the inventory management system will then ignore it. Turns out this was much more difficult to figure out than I expected it to be but the end solution was quite simple.

A. Login to Magento back-end
B. Go to menu System >> Configuration.
C. Take inventory tab from the left panel
D. Set Display out of stock products to ‘Yes’ in Stock options tab in the right panel

E. Clear your cache and reindex your Index management.

That's it.