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

How to realize big benefits from a holding company discount

How to realize big benefits from a holding company discount

A holding company discount represents a great hidden opportunity for investor profit.
Even in 2019, a holding company discount is a little-understood phenomenon in finance. It represents a special kind of hidden asset and source of potential profit for investors in holding companies.

A holding company is… Read More

Get a 4.1% yield from Wells Fargo & Co.

Get a 4.1% yield from Wells Fargo & Co.

A restriction imposed by the U.S. Federal Reserve forced this lender to sell a group of its loans, ultimately leading it to a 22% earnings jump.

Stock buybacks also contributed to a 32.7% jump in earnings per share for the quarter ended June 30, 2019.

The stock… Read More

Get 6.0% yield from Transcontinental Inc’s transition to packaging

Get 6.0% yield from Transcontinental Inc’s transition to packaging

Less-cyclical packaging revenue should help raise earnings 3.6% as this firm sells most of its specialty magazines and event-planning businesses to invest in consumer and industrial packaging.

The stock trades at just 5.8 times the 2020 earnings forecast.

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

TRANSCONTINENTAL INC., (Toronto symbol TCL.A), has agreed to sell… Read More

Earnings soar 27.1% for Leon’s Furniture Ltd.

Earnings soar 27.1% for Leon’s Furniture Ltd.

Rising sales of more-profitable merchandise led to this retailer’s earnings jump in the most-recent quarter.

Its new concept store, with advanced technology, should help further boost the chain’s sales from urban buyers. It should also help bolster dividend payments for investors. Today’s annual dividend rate yields… Read More

Russel Metals offers investors a 7.6% yield

Russel Metals offers investors a 7.6% yield

Shareholders of this metal distributor continue to benefit from its rising sales on both sides of the U.S.-Canada border. That regional diversity helped lift overall revenue by 11% in the most-recent quarter as selling prices in both markets improved.

Given the company’s unique business model,… Read More

Toronto-Dominion Bank offers a 3.8% yield

Improved earnings from retail operations on both sides of the border contributed to a 7.9% revenue boost for this bank during the most-recent quarter.

A key wealth management acquisition is also set to add to its revenue and help support its annual dividend increases.

The bank has… Read More

A 4.2% yield adds to Bank of Montreal’s appeal

A 4.2% yield adds to Bank of Montreal’s appeal

Canadian and U.S. retail banking and wealth management led to a 26.4% revenue jump over the most-recent quarter.

Cost cutting from increased online banking is also helping the bank improve its efficiency ratio.

The stock trades at just 10.3 times the company’s 2019 earnings forecast.

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

BANK OF… Read More