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

An end to the GM strike enhances Linamar’s appeal

An end to the GM strike enhances Linamar’s appeal

Lower sales of industrial equipment and automotive parts led to a 20.6% earnings drop for this company during the most-recent quarter. The decline reflects the strike by GM workers and the resulting production shutdowns.

The recent acquisition of an agricultural-equipment firm has reduced the firm’s… Read More

Learn how to value invest for long-term investing success

Learn how to value invest for long-term investing success

Learn how to value invest so you can maximize your long-term portfolio returns—and minimize risk
Value investing focuses on stocks that trade lower than their financial fundamentals suggest. They are perceived as undervalued by most investors and have the potential to rise.

You need an eye for… Read More

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