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.

The Profits from Hidden Value

Learn everything you need to know in 7 Pro Secrets to Value Investing for a FREE special report for you.

Canadian Value Stocks:
How to Spot Undervalued Stocks
PLUS! Our Top 4 Value Stocks


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Value Stocks Post Archives

Dividend Investing vs. Value Investing

Dividend Investing vs. Value Investing

In choosing dividend investing vs value investing, it’s important to recognize that both can lead to favourable returns
To decide between dividend investing vs value investing, investors must first distinguish between the two. The best dividend stocks respond to tough economic times by doing their best to maintain,… Read More

Enjoy a 6.3% yield from IGM Financial Inc.

Enjoy a 6.3% yield from IGM Financial Inc.

While assets under management have dropped, recent stock market volatility and higher interest rates will probably prompt more individuals to turn to IGM’s professional advisors.

The stock trades at just 9.2 times the company’s 2022 earnings forecast.

IGM FINANCIAL INC. (Toronto symbol IGM; www.igmfinancial.com) is Canada’s largest… Read More

Earnings jumped 16.1% at Canadian Tire Corp.

Earnings jumped 16.1% at Canadian Tire Corp.

Improved in-store sales offset reduced online sales and led to a 15.5% revenue increase for this company during the most-recent quarter.

An ongoing efficiency improvement plan and new sales initiatives should help to boost the bottom line and solid dividend.

The stock trades at just 8.6 times… Read More

Earnings rose 6.3% at Cisco Systems Inc.

Earnings rose 6.3% at Cisco Systems Inc.

Technology stocks have come down from their 2021 highs as it looks increasingly likely that the U.S. Federal Reserve will keep raising interest rates to fight inflation. That could slow the global economic recovery as the COVID-19 pandemic eases.

Even so, we feel a top-quality technology… Read More

Finning Int’l Inc. just grew earnings 73.7%

Finning Int’l Inc. just grew earnings 73.7%

Despite huge disruptions with the onset of the COVID-19 pandemic in March 2020, this firm maintained its dividend. On pandemic easing, the company lifted that payment by 9.8%.

Investors should also benefit from a rising stock price as stronger demand for its equipment and services spurs… Read More