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.

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Value Stocks Library Archives

Access this higher-value cannabis market

Investors will benefit from Molson Coors’s plan to transform its business in the face of weaker demand for beer from baby boomers and millennials. Central to that strategy is a joint venture focused on producing cannabis-infused drinks. Despite Molson’s recent writedown of that cannabis investment,… Read More

Ford gives you a cheap way to gain from EVs

Carmakers continue to face long-term challenges. That includes slowing demand from millennials for new cars and the general shift away from gasoline-powered vehicles.
However, top automaker Ford is in a strong position to overcome those obstacles and fuel gains for its investors. The company is investing… Read More

Transcontinental will cut your risk

TRANSCONTINENTAL INC. $13 remains a buy. The company (Toronto symbol TCL.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 87.3 million; Market cap: $1.1 billion; Price-to-sales ratio: 0.7; Dividend yield: 6.8%; TSINetwork Rating: Average; is Canada’s leading commercial printer. It also makes plastic packaging for consumer and industrial… Read More

Sell Tupperware to lower your taxes

TUPPERWARE BRANDS CORP., $8.58, is now a sell. The company (New York symbol TUP; Income Portfolio, Consumer sector; Shares outstanding: 48.7 million; Market cap: $417.8 million; Price-to-sales ratio: 0.2; Dividend suspended in November 2019; TSINetwork Rating: Extra Risk; makes consumer goods, including plastic food and beverage containers… Read More

More premium brands to boost your value

In the past few years, increasingly health-conscious consumers have cut their alcohol use. In light of stagnating volume sales, brewer Molson Coors and distiller Diageo continue to shift their focus to premium brands. They generate higher profits to help drive your gains.
The move should also… Read More

Top foodmakers should boost your returns

With Wall Street Stock Forecaster, we continue to direct your attention to firms that either lead or, in many cases, dominate their markets. That helps to protect investors as markets undergo change. These two food giants continue to adapt their businesses to shifting consumer tastes,… Read More

End of strike good news for investors

LINAMAR CORP., $44, is a buy. The auto parts maker (Toronto symbol LNR; Aggressive Growth Portfolio, Manufacturing & Industry sector;
Shares outstanding: 65.4 million; Market cap: $2.9 billion; Price-to-sales ratio: 0.4; Dividend yield: 1.1%; TSINetwork Rating: Average; has rebounded 20% since falling to a low… Read More

Our cheap buys lift your gains

FINNING INTERNATIONAL INC., $24, remains an attractive buy for our investors. The company (Toronto symbol FTT; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 163.3 million; Market cap: $3.9 billion; Price-to-sales ratio: 0.5; Dividend yield: 3.4%; TSINetwork Rating: Above Average; sells and services Caterpillar heavy equipment… Read More

Loblaw rewards you as it adapts

Intense competition among traditional supermarket operators has traditionally kept their profit margins low and their success dependent on steady foot traffic. In the last decade, competition from online sellers has only helped to shrink their profit margins. Despite those challenges, this star retailer for our… Read More

Investors gain from Tegna’s bigger size

TEGNA INC., $16, is a buy. The company (New York symbol TGNA, Conservative Growth Portfolio, Consumer sector: Shares o/s: 216.7 million; Market cap: $3.5 billion; Price-to-sales ratio: 1.5; Divd. yield: 1.8%; TSINetwork Rating: Average; owns 62 TV and four radio stations in 51 markets. It also offers… Read More

It still has the potential to reward you

L BRANDS INC., $18, is still a hold. The retailer (New York symbol LB; Aggressive Growth Portfolio, Consumer sector; Shares o/s: 275.1 million; Market cap: $5.0 billion; Price-to-sales ratio: 0.4; Divd. yield: 6.7%; TSINetwork Rating: Average; owns two retail chains: Victoria’s Secret stores (which sell lingerie); and… Read More

Patience should reward these retailers’ investors

Traditional department stores face strong competition in two areas. The popularity of online shopping continues to hurt customer traffic, while cost-conscious shoppers prefer discount chains. In response, Macy’s and Nordstrom are aggressively cutting costs and selling some of their sizable real estate holdings. These moves… Read More

Buy UTX even after its jump

UNITED TECHNOLOGIES CORP., $140, is our #1 Conservative buy for 2019. This leading maker of aircraft engines and controls, heating equipment, and elevators (New York symbol UTX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 862.8 million; Market cap: $120.8 billion; Price-to-sales ratio: 1.6; Dividend yield:… Read More

Its lower costs set you up for future gains

MOLSON COORS CANADA INC. (Toronto symbols TPX.A $81 and TPX.B $76; Conservative Growth and Income Portfolios, Consumer sector; Shares outstanding: 216.4 million; Market cap: $16.4 billion; Price-to-sales ratio: 0.6;- Dividend yield: 4.0%; TSINetwork Rating: Average; is the world’s fifth-largest largest brewer of beer by market cap. Its top brands… Read More

Loblaw lets you tap healthier profits

LOBLAW COMPANIES LTD., $74, is a buy. The company (Toronto symbol L; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 369.1 million; Market cap: $27.3 billion; Price-to-sales ratio: 0.6; Dividend yield: 1.7%; TSINetwork Rating: Above Average; is re-vamping its “No Name” packaged foods. The supermarket chain launched that… Read More