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.

The Profits from Hidden Value

Learn everything you need to know in 7 Pro Secrets to Value Investing for a FREE special report for you.

Canadian Value Stocks:
How to Spot Undervalued Stocks
PLUS! Our Top 4 Value Stocks


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Value Stocks Post Archives

Get a 4.3% yield from Canadian Tire Corp.

Get a 4.3% yield from Canadian Tire Corp.

Improved sales of automotive parts and services as well as household and sporting goods led to a 12.4% revenue jump for this company during the most-recent quarter.

Higher loan-loss provisions and operating costs hurt earnings but the company plans to close unprofitable stores and cut expenses.

The… Read More

Get a 3.9% yield from Stanley Black & Decker Inc.

Get a 3.9% yield from Stanley Black & Decker Inc.

While supply-chain disruptions and rising costs for labour and shipping add risk, this firm continues to reward investors with higher dividends and share buybacks.

Recent acquisitions and divestments have focused the firm on its consumer tool business.

Meanwhile the stock trades at 14.9 times the company’s 2022… Read More

Get a cheap 3.7% yield from Cisco Systems Inc.

Get a cheap 3.7% yield from Cisco Systems Inc.

In the past few years, securely connecting to the Internet has become crucial as more businesses sell goods and transfer sensitive information online. Part of that is more non-computer devices—like cars and household appliances—are also connecting to the “Internet of Things.”

As the market leader in… Read More

Finning Int’l Inc. yields 3.9%

Finning Int’l Inc. yields 3.9%

Sales improved 17.5% and generated a huge 42.9% earnings rise as demand for equipment and maintenance services continued to build.

Earnings should show strong growth across all of 2022, which further enhances the appeal of an 8.4 p/e.

FINNING INTERNATIONAL INC. (Toronto symbol FTT; www.finning.com) sells and… Read More

Earnings just rose 37.7% and beat analyst expectations

Earnings just rose 37.7% and beat analyst expectations

Rising snack-foods sales also led to a 7.4% jump in revenue for this company during the most-recent quarter.

A recent $6.1 billion acquisition has accelerated the company’s focus on its core areas.

Meanwhile the stock trades at 17.0 times the company’s 2022 earnings forecast.

The Profits from Hidden Value

Learn everything you need to know in 7 Pro Secrets to Value Investing for a FREE special report for you.

Canadian Value Stocks: How to Spot Undervalued Stocks PLUS! Our Top 4 Value Stocks

 I consent to receiving information from The Successful Investor via email. I understand I can unsubscribe from these updates at any time.

CAMPBELL SOUP CO. (New… Read More

Get a 3.9% yield from Conagra Brands Inc.

Get a 3.9% yield from Conagra Brands Inc.

This firm spun off its potato-processing business Lamb Weston in November 2016; investors received one Lamb Weston share for every three shares of the original firm they held.

Both stocks took a step back as a result of COVID-19 lockdowns, but they are now close… Read More

Get a 3.7% yield at Leon’s Furniture Ltd.

Get a 3.7% yield at Leon’s Furniture Ltd.

We recommend investors limit their aggressive holdings to no more than a third of their overall portfolio. To further cut your risk, you should focus on high-quality aggressive stocks such as this one.

Some dividend investors avoid small-cap stocks as they feel their dividends are not… Read More

Get a 6.1% yield from AT&T

Get a 6.1% yield from AT&T

This firm recently spun off its media operations as it continues to shift its focus to its main telecom businesses.

The plan should benefit both companies since investors tend to prefer pure-play firms. Indeed, we like both firms. Still, the telecom firm is the better… Read More

Enjoy a 6.3% yield from IGM Financial Inc.

Enjoy a 6.3% yield from IGM Financial Inc.

While assets under management have dropped, recent stock market volatility and higher interest rates will probably prompt more individuals to turn to IGM’s professional advisors.

The stock trades at just 9.2 times the company’s 2022 earnings forecast.

IGM FINANCIAL INC. (Toronto symbol IGM; www.igmfinancial.com) is Canada’s largest… Read More

Earnings jumped 16.1% at Canadian Tire Corp.

Earnings jumped 16.1% at Canadian Tire Corp.

Improved in-store sales offset reduced online sales and led to a 15.5% revenue increase for this company during the most-recent quarter.

An ongoing efficiency improvement plan and new sales initiatives should help to boost the bottom line and solid dividend.

The stock trades at just 8.6 times… Read More

Earnings rose 6.3% at Cisco Systems Inc.

Earnings rose 6.3% at Cisco Systems Inc.

Technology stocks have come down from their 2021 highs as it looks increasingly likely that the U.S. Federal Reserve will keep raising interest rates to fight inflation. That could slow the global economic recovery as the COVID-19 pandemic eases.

Even so, we feel a top-quality technology… Read More

Finning Int’l Inc. just grew earnings 73.7%

Finning Int’l Inc. just grew earnings 73.7%

Despite huge disruptions with the onset of the COVID-19 pandemic in March 2020, this firm maintained its dividend. On pandemic easing, the company lifted that payment by 9.8%.

Investors should also benefit from a rising stock price as stronger demand for its equipment and services spurs… Read More