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.

Read More

Value Stocks Post Archives

Extendicare Inc. maintains revenue and occupancy strength

Extendicare Inc. maintains revenue and occupancy strength

This firm’s revenues rose 2.3% during the most-recent quarter, even as COVID-19 raised investor worries about the outlook for it and other long-term-care providers.

The company’s cash flow did dip 7.9% on higher maintenance spending, but occupancy levels remain strong.

EXTENDICARE INC. (Toronto symbol EXE; www.extendicare.com) owns… Read More

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

Get a 4.0% yield from Honda Motor Co. Ltd.

Get a 4.0% yield from Honda Motor Co. Ltd.

American Depositary Receipts (ADRs) make it easier for Canadian and other Western investors to benefit from the value of the best overseas companies.

While car sales will likely remain depressed for the next few months, this world-class firm should outpace many competitors thanks to effective… 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 2020, 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

Verisk Analytics finds growth overseas

Verisk Analytics finds growth overseas

A Member of Pat McKeough’s Inner Circle recently asked for his advice on a risk-assessment company that caters to property/casualty insurers and other businesses.

Pat likes the company’s steady revenue gains over the last five years and the fact that 80% of that revenue comes from… Read More

Enjoy a 5.5% yield from Toronto-Dominion Bank

Enjoy a 5.5% yield from Toronto-Dominion Bank

The company is selling its online brokerage firm to a competitor in an all-stock takeover deal.

Meanwhile it boasts a track record of increasing its dividend for investors by 9.1% each year over the past 5 years.

TORONTO-DOMINION BANK, (Toronto symbol TD; www.td.com) owns roughly 43% of… Read More

DynaCERT has attracted $14m from a key investor

DynaCERT has attracted $14m from a key investor

A Member of Pat McKeough’s Inner Circle recently asked for his advice on a company involved with transportable hydrogen generation development and distribution.

Pat appreciates that the company is making sales and spending significant sums on research, but notes it has yet to gain profitability and… Read More

Enjoy 9.0% yield from IGM Financial Inc.

Enjoy 9.0% yield from IGM Financial Inc.

The market downturn has hurt fee revenue for this fund management leader. Still, the company’s ETFs have seen rising demand as investors look to strengthen their returns in this low-interest rate environment.

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

IGM FINANCIAL INC., (Toronto symbol IGM; www.igmfinancial.com) is Canada’s largest independent mutual-fund provider with… Read More