Value Stocks

What are value stocks?

One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

Value stocks are stocks trading lower than their financial fundamentals suggest. They are perceived as undervalued, and have the potential to rise. Many new tech stocks, for instance, start out as growth stocks and transition into value stocks.

They have a low price-to-earnings and price-to-book ratios—which is why they’re less expensive than growth stocks. Due to this fundamental distinction, a value stock is often traded at a more affordable rate than a growth stock.

To investors, they see companies that fall into this category as undervalued. These investors are less likely to invest in a growth stock because they feel that value company’s stock will eventually reach their full potential once they are recognized by the market.

Generally speaking, the climb is steady for value stocks. The only other way for it to emerge into the market like a growth stock is for it to be a bit more innovative with its products or services.

Pat McKeough is an expert at delving into a company’s financial statements and identifying undervalued securities and value stocks. That’s because value stocks are the foundation of any long term investment strategy, at TSI Network we also recommend our three-part Successful Investor strategy:

  1. Invest mainly in well-established companies;
  2. Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; the Consumer sector; Finance; Utilities);
  3. Downplay or avoid stocks in the broker/media limelight.

Quality Stocks, Bargain Prices: read this FREE Special Report, Canadian Value Stocks: How to Spot Undervalued Stocks & Our Top 4 Value Stock Pick.

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Value Stocks Post Archives

Genuine Parts Co. just grew earnings 17.3%

Genuine Parts Co. just grew earnings 17.3%

Like other top industrial stocks, this company’s strong balance sheet should help it cope with economic shocks during the COVID-19 pandemic. That should generate further dividend hikes for investors in 2021 as the pandemic eases.

The company trades at an attractive 17.5 times its projected 2021… Read More

The Good Times will return for Molson

The Good Times will return for Molson

The Good Times will return for Molson

This firm’s short-term prospects are limited due to COVID-19 restrictions.  However, it should survive the economic downturn and prosper as the economy re-opens in the future.

MOLSON COORS CANADA INC. (Toronto symbols TPX.A and TPX.B; www.molsoncoors.com) gives you a stake… Read More

Here’s how to start a stock portfolio for maximum long-term gains

Here’s how to start a stock portfolio for maximum long-term gains

For new investors learning how to start a stock portfolio, buying high-quality stocks and diversification are key parts of the process
The fundamentals of investing are essentially the same for newcomers as they are for established, successful investors.

Are you interested in learning how to start a.. Read More

Get a 3.2% yield from Cisco Systems Inc.

Get a 3.2% yield from Cisco Systems Inc.

Businesses have put off IT spending during the pandemic, which led to a 9.3% drop in revenue for this provider during the most-recent quarter. 

While its orders should rebound in the new year, a new security software acquisition is poised to accelerate its turnaround. 

CISCO SYSTEMS INC… Read More

How to Pick Stocks Without a Broker: 5 Key Tips

How to Pick Stocks Without a Broker: 5 Key Tips

Here are some helpful tips and advice on how to pick stocks without a broker
Brokers can sell their clients an array of products and services that will bring them a wide range of fees and commissions, from high to low. As a general rule, the… Read More

Get a 5.2% from IBM Corp.

Get a 5.2% from IBM Corp.

Businesses have slowed their purchases of new computer equipment due to the COVID-19 pandemic. However, this leader’s recent moves should help expand profits—and dividends—when demand recovers. 

In the meantime, its massive cash flow of over $20 billion a year means it can spend $6 billion (8%… Read More

The best long-term stocks to buy: Here’s how to find them

The best long-term stocks to buy: Here’s how to find them

There are a variety of factors to consider when you look for top long-term stocks to buy, including whether they pay dividends, their position in their industry and management strength
One successful strategy for finding long-term stocks to buy is to identify well-financed companies that are… Read More

Get a 6.6% yield from IGM Financial Inc.

Get a 6.6% yield from IGM Financial Inc.

Improving stock markets helped this mutual fund provider boost its assets under management by 7.1% in the most recent quarter.  

The company’s investors are also seeing its 36% stake in a fintech company grow in value. 

IGM FINANCIAL INC. (Toronto symbol IGM; www.igmfinancial.com) lets you tap Canada’s… Read More

Calian’s strategic moves helped boost earnings 12.7%

Calian’s strategic moves helped boost earnings 12.7%

New Canadian government contracts and a satellite tech acquisition led to an 18.8% jump in revenue for this company during the quarter ended June 30, 2020.

Another recent training-firm acquisition has also contributed to its expanding European presence.

Quality Stocks, Bargain Prices: read this FREE Special Report, Canadian Value Stocks: How to Spot Undervalued Stocks & Our Top 4 Value Stock Pick.

CALIAN GROUP LTD. (Toronto symbol CGY; www.calian.com) provides engineering… Read More

Wajax offers a 6.5% yield

Wajax offers a 6.5% yield

COVID-19 difficulties and weak resource markets led to a 12.8% revenue drop for this company during the most-recent quarter.

However, business conditions should improve and a recent acquisition looks like a great fit for the firm.

Quality Stocks, Bargain Prices: read this FREE Special Report, Canadian Value Stocks: How to Spot Undervalued Stocks & Our Top 4 Value Stock Pick.

WAJAX CORP. (Toronto symbol WJX; www.wajax.ca) sells and services cranes, forklifts… Read More