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

Campbell Soup Co. is growing earnings and yield

Campbell Soup Co. is growing earnings and yield

Rising sales, cost cutting and a major acquisition helped rocket quarterly earnings 79.5% as compared to last year.

The company is also disposing of non-core assets to focus on canned soups, pasta, V8 vegetable juices, and snack products.

The stock trades at 16.5 times the company’s 2019… Read More

Acquisition and ecommerce pay off for Leon’s Furniture shareholders

Acquisition and ecommerce pay off for Leon’s Furniture shareholders

This furniture retailer quadrupled in size following a major acquisition and now has 217 locations across Canada.

The company’s increasing success with online sales has also contributed to spur its earnings, along with improved sales of higher-profit-margin furniture and appliances.


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LEON’S FURNITURE LTD. (Toronto symbol LNF;… Read More

Use these simple strategies to find the best low-risk investments

Use these simple strategies to find the best low-risk investments

For conservative investors looking to add low-risk investments to their portfolios in 2019, here’s how to find them
Low risk investments equate to safer investments. For safe investing, focus on investing in high-quality stocks that offer hidden value. As you know, we put a lot of stress… Read More

This facilities operator offers a 6.7% yield

This facilities operator offers a 6.7% yield

This operator of senior-care facilities owns or manages more than 120 properties as well as home health-care branches.

The company enjoys steady cash flow in a growing business and recent acquisitions to expand its private-pay luxury facilities should help to offset a key risk for the… Read More

An Average Down Stock Strategy Can Just Add to Costly Mistakes

An Average Down Stock Strategy Can Just Add to Costly Mistakes

We recommend an averaging in over an average down stock investment strategy. Averaging in lets you add more of stocks that have sound prospects. Averaging down often does just the opposite
“Averaging down” and “averaging in” sound similar, and their meaning is similar as well. Both… Read More

Asset sale will help brighten its outlook

Asset sale will help brighten its outlook

With its long-term debt at 117% of its market capitalization, this conglomerate is making strategic cuts to focus on three main businesses: aviation products, electrical power equipment, and renewable power equipment.


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GENERAL ELECTRIC CO. $10 (New York symbol GE; www.ge.com) continues to make progress with… Read More

Home-improvement chain Home Depot readies for more online sales

Home-improvement chain Home Depot readies for more online sales

A Member of Pat McKeough’s Inner Circle recently asked for his advice on a company that operates warehouse-style home-improvement stores, spread across North American and each carrying 30,000 to 40,000 items instore.

Pat likes the company’s plans to cut down on delivery times for online… Read More

Cash flow covers Inter Pipeline’s high yield

Cash flow covers Inter Pipeline’s high yield

A Member of Pat McKeough’s Inner Circle recently asked for his advice on a company that transports, stores, markets and processes oil and natural gas in Canada and internationally.

Operations expansion has lifted quarterly revenue 25.1% and earnings, 18.9%. The stock currently trades at a modest… Read More