Value Stocks
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:
- Invest mainly in well-established companies;
- Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; the Consumer sector; Finance; Utilities);
- Downplay or avoid stocks in the broker/media limelight.
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Value Stocks Library Archive
NCR ATLEOS CORP. $37 (www.ncratleos.com) is a hold. On October 16, 2023, the old NCR Corp. (New York symbol NCR) split itself into two separate firms. One (called NCR Atleos) focuses on automated teller machines, and the other (called NCR Voyix, see below) focuses on digital commerce businesses. Investors received one share of NCR Atleos for every two NCR shares they held. The shares of the new company are now up over 80% since the split and trade at 9.2 times the $4.01 a share it will probably earn in 2025. That low p/e reflects the shift away from ATMs to online banking. NCR Atleos is a hold.
TRANSCONTINENTAL INC. $20 is a buy for aggressive investors. The company (Toronto symbol TCL.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 83.6 million; Market cap: $1.7 billion; Price-to-sales ratio: 0.6; Dividend yield: 4.5%; TSINetwork Rating: Average; www.tctranscontinental.com) is Canada’s leading printer of newspapers, advertising flyers, magazines and books. It also makes plastic packaging for consumer products.
Transcontinental has developed a new type of plastic film called BOPE (advanced biaxially oriented polyethylene).
Transcontinental has developed a new type of plastic film called BOPE (advanced biaxially oriented polyethylene).
These beverage makers face two challenges: tariffs are adding to their costs, while consumers are shifting away from their main products. Both companies are cutting costs, which will bolster their profits and dividends. Even so, we see better opportunities elsewhere for new buying.
MOLSON COORS CANADA INC. is a hold. The company (Toronto symbols TPX.A $68 and TPX.B $65; Conservative Growth and Income Portfolios, Consumer sector; Shares outstanding: 197.7 million; Market cap: $13.0 billion; Price-to-sales ratio: 0.9; Dividend yield: 4.0%; TSINetwork Rating: Average; www.molsoncoors.com) is the world’s fourth-largest beer brewer.
MOLSON COORS CANADA INC. is a hold. The company (Toronto symbols TPX.A $68 and TPX.B $65; Conservative Growth and Income Portfolios, Consumer sector; Shares outstanding: 197.7 million; Market cap: $13.0 billion; Price-to-sales ratio: 0.9; Dividend yield: 4.0%; TSINetwork Rating: Average; www.molsoncoors.com) is the world’s fourth-largest beer brewer.
Canadian Tire’s class A shares fell to below $140 earlier this year as investors feared new U.S. tariffs would add to its costs and hurt consumer spending. However, only about 15% of the amount it spends on acquiring or manufacturing products is tied to the U.S. The company is also adjusting its supply chains to further minimize the tariff impact. As a result, the stock is now up 12% since the start of 2025.
The company recently announced a new strategy that mainly involves making better use of customer shopping data to spur sales. At the same time, it’s closing unprofitable stores and cutting administrative costs.
The company recently announced a new strategy that mainly involves making better use of customer shopping data to spur sales. At the same time, it’s closing unprofitable stores and cutting administrative costs.
EMBECTA CORP. $15 is a buy for long-term gains. The company (Nasdaq symbol EMBC; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 58.5 million; Market cap: $877.5 million; Price-to-sales ratio: 0.8; Dividend yield: 4.0%; TSINetwork Rating: Average; www.embecta.com) makes insulin syringes, insulin pens and related products for the treatment of diabetes.
BECTON DICKINSON & CO. $186 is a buy. The medical device maker (New York symbol BDX; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 286.6 million; Market cap: $53.3 billion; Price-to-sales ratio: 2.5; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.bd.com) has agreed to merge its Biosciences and Diagnostic Solutions operations with lab equipment maker Waters Corp. (New York symbol WAT).
FORD MOTOR CO. $12 is a hold. The automaker (New York symbol F; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.0 billion; Market cap: $48.0 billion; Price-to-sales ratio: 0.3; Dividend yield: 5.1%; TSINetwork Rating: Extra Risk; www.ford.com) expects new U.S. tariffs on steel, aluminum and other materials will cut its 2025 EBIT (earnings before interest and taxes) by $2 billion, to between $6.5 billion to $7.5 billion. The midpoint of that range is down 42.3% from $10.4 billion in 2024.
TOYOTA MOTOR CO. ADRs $198 is a buy. The stock (New York symbol TM; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.3 billion; Market cap: $257.4 billion; Price-to-sales ratio: 0.8; Dividend yield: 3.1%; TSINetwork Rating: Above Average; www.toyota.com) gives you exposure to the world’s largest automaker by production. It gets about half of its sales from markets outside of Japan.
Toyota sold 2.41 million vehicles in its fiscal 2026 first quarter ended June 30, 2025. That’s up 7.1% from 2.25 million a year earlier.
Toyota sold 2.41 million vehicles in its fiscal 2026 first quarter ended June 30, 2025. That’s up 7.1% from 2.25 million a year earlier.
CONAGRA BRANDS INC. $19 is a buy for long-term gains. The company (New York symbol CAG; Income Portfolio, Consumer sector; Shares outstanding: 477.4 million; Market cap: $9.1 billion; Price-to-sales ratio: 0.8; Dividend yield: 7.4%; TSINetwork Rating: Above Average; www.conagrabrands.com) makes a variety of popular foods, including Hunt’s tomato sauce, Orville Redenbacher popcorn and Reddi-wip whipped cream.
The company is selling some of its slower-growing businesses. For example, it recently sold its Chef Boyardee brand of ready-to-eat pasta meals for $601.2 million. It also sold its frozen fish business, which includes the Van De Kamp’s and Mrs. Paul’s brands, for $42.4 million.
The company is selling some of its slower-growing businesses. For example, it recently sold its Chef Boyardee brand of ready-to-eat pasta meals for $601.2 million. It also sold its frozen fish business, which includes the Van De Kamp’s and Mrs. Paul’s brands, for $42.4 million.
FEDEX CORP. $234 remains a buy. The company (New York symbol FDX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 234.0 million; Market cap: $54.8 billion; Price-to-sales ratio: 0.6; Dividend yield: 2.5%; TSINetwork Rating: Average; www.fedex.com) provides courier services throughout the U.S. as well 220 other countries.