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

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

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

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.


The Best Stocks Aren't Always Best-Known

They’re some of the most spectacular ‘ready-to-soar’ stocks

And Canadians rarely hear about them.
See them with a 30-day free trial.

Continue Reading >>

 


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