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
STATE STREET CORP. $152 is a buy. The company (New York symbol STT; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 276.9 million; Market cap: $42.1 billion; Price-to-sales ratio: 3.0; Dividend yield: 2.2%; TSINetwork Rating: Average; www.statestreet.com) sells accounting and administrative services to operators of mutual funds and pension plans.
The stock has jumped over 80% in the past year and hit a record high of $156 in April 2026. That’s because improving stock markets lifted its assets under custody and administration; its fee income rises and falls with the value of these holdings. The company is also using new artificial intelligence tools to streamline certain activities and improve efficiency.
The stock has jumped over 80% in the past year and hit a record high of $156 in April 2026. That’s because improving stock markets lifted its assets under custody and administration; its fee income rises and falls with the value of these holdings. The company is also using new artificial intelligence tools to streamline certain activities and improve efficiency.
These Japanese automakers face two challenges: U.S. tariffs continue to weigh on their sales; and the absence of government subsidies is hurting demand for their electric vehicles (EVs). In response, both are increasing their investments in the U.S. They are also producing more hybrid vehicles, which are increasingly popular as gasoline prices rise. These moves improve their long-term prospects.
TOYOTA MOTOR CO. ADRs $200 is a buy. Japan’s largest automaker (New York symbol TM; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.3 billion; Market cap: $260.0 billion; Price-to-sales ratio: 0.9; Dividend yield: 3.2%; TSINetwork Rating: Above Average; www.toyota.com) sold 2.52 million vehicles in its third quarter of fiscal 2026, up 3.1% a year-earlier.
TOYOTA MOTOR CO. ADRs $200 is a buy. Japan’s largest automaker (New York symbol TM; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.3 billion; Market cap: $260.0 billion; Price-to-sales ratio: 0.9; Dividend yield: 3.2%; TSINetwork Rating: Above Average; www.toyota.com) sold 2.52 million vehicles in its third quarter of fiscal 2026, up 3.1% a year-earlier.
CANADIAN TIRE CORP. (class A non-voting) is a buy. The retailer (Toronto symbols CTC $217 and CTC.A $194; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 54.1 million; Market cap: $11.5 billion; Price-to-sales ratio: 0.6; Dividend yield: 3.7%; TSINetwork Rating: Above Average; www.canadiantire.ca) operates 503 Canadian Tire stores. They sell automotive parts and services, and household and sporting goods; franchisees run most locations. Its other chains include Mark’s (casual clothing) and Sport Chek (sporting goods).
LINAMAR CORP. $87 is a buy for aggressive investors. The company (Toronto symbol LNR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 59.8 million; Market cap: $5.2 billion; Price-to-sales ratio: 0.5; Dividend yield: 1.3%; TSINetwork Rating: Average; www.linamar.com) makes a variety of automotive parts. This business provides about 70% of its sales. The remaining 30% comes from making self-propelled, scissor-type work platforms under the Skyjack brand, and agricultural harvesting equipment.
Linamar has formed a new alliance with Regen Resources Recovery Corp. to process graphite for batteries that power electric vehicles (EVs).
Linamar has formed a new alliance with Regen Resources Recovery Corp. to process graphite for batteries that power electric vehicles (EVs).
CARRIER GLOBAL CORP. $59 is a buy. The company (New York symbol CARR; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 842.2 million; Market cap: $49.7 billion; Price-to-sales ratio: 2.3; Dividend yield: 1.6%; TSINetwork Rating: Average; www.carrier.com) continues to benefit from strong demand for its heating and cooling equipment from the operators of artificial intelligence datacentres. In 2025, sales to datacentres doubled $1 billion, and will probably rise another 50% to $1.5 billion in 2026.
MOLSON COORS BEVERAGE CO. $41 is a hold. The beer brewer (New York symbol TAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 187.9 million; Market cap: $7.7 billion; Price-to-sales ratio: 0.7; Dividend yield: 4.7%; TSINetwork Rating: Average; www.molsoncoors.com) has agreed to pay an undisclosed amount for Atomic Brands, which makes ready-to-drink cocktails under the Monaco Cocktails brand.
We often remind investors that spinoffs are a great way for companies to unlock value. In fact, 3M is now up 55% since it spun off its health products business as Solventum. While that new firm has dropped 5% since the split, we still like its long-term prospects.
3M COMPANY $148 is a buy. The company (New York symbol MMM; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 531.2 million; Market cap: $78.6 billion; Price-to-sales ratio: 3.1; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.3m.com) makes more than 60,000 industrial and consumer items, including Post-it notes, Scotch tape, Scotch-Brite cleaning products, Scotchgard protection and Thinsulate insulation.
3M COMPANY $148 is a buy. The company (New York symbol MMM; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 531.2 million; Market cap: $78.6 billion; Price-to-sales ratio: 3.1; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.3m.com) makes more than 60,000 industrial and consumer items, including Post-it notes, Scotch tape, Scotch-Brite cleaning products, Scotchgard protection and Thinsulate insulation.
Both of these companies are members of the Power Corp. family and have streamlined their businesses in the past few years. Those efforts have helped drive profits and dividends. Each is a solid addition to the Finance portion of your portfolio.
GREAT-WEST LIFECO INC. $63 is a buy. The insurance company (Toronto symbol GWO; Conservative Growth and Income Portfolios, Finance sector; shares outstanding: 906.3 million; Market cap: $57.1 billion; Price-to-sales ratio: 1.5; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.greatwestlifeco.com) is Canada’s second-largest life insurer, after Manulife Financial. It also offers pension and wealth management services. Power Corp. (Toronto symbol POW) owns 68.8% of the firm.
GREAT-WEST LIFECO INC. $63 is a buy. The insurance company (Toronto symbol GWO; Conservative Growth and Income Portfolios, Finance sector; shares outstanding: 906.3 million; Market cap: $57.1 billion; Price-to-sales ratio: 1.5; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.greatwestlifeco.com) is Canada’s second-largest life insurer, after Manulife Financial. It also offers pension and wealth management services. Power Corp. (Toronto symbol POW) owns 68.8% of the firm.
ROYAL BANK OF CANADA $224 is a buy. Canada’s largest bank (Toronto symbol RY; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.4 billion; Market cap: $313.6 billion; Price-to-sales ratio: 4.7; Dividend yield: 2.9%; TSINetwork Rating: Above Average; www.rbc.com) acquired the Canadian operations of U.K.-based HSBC Holdings plc (New York symbol HSBC) in March 2024 for $15.5 billion.
The purchase helped lift Royal’s revenue in its fiscal 2026 first quarter, ended January 31, 2026, by 7.3%, to $17.96 billion from $16.74 billion a year earlier.
The purchase helped lift Royal’s revenue in its fiscal 2026 first quarter, ended January 31, 2026, by 7.3%, to $17.96 billion from $16.74 billion a year earlier.
These two makers of medical products are cutting jobs and other costs to help them pay down high debt loads. We feel embecta is the better pick, as its high-yielding dividend looks secure.
EMBECTA CORP. $10 is a buy for long-term gains. The company (Nasdaq symbol EMBC; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 59.2 million; Market cap: $592.0 million; Price-to-sales ratio: 0.8; Dividend yield: 6.0%; TSINetwork Rating: Average; www.embecta.com) took its current form on April 1, 2022, when Becton Dickinson & Co. (New York symbol BDX) spun off its Diabetes Care business as a separate firm. Investors received one share of embecta for every five common shares of Becton they held.
EMBECTA CORP. $10 is a buy for long-term gains. The company (Nasdaq symbol EMBC; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 59.2 million; Market cap: $592.0 million; Price-to-sales ratio: 0.8; Dividend yield: 6.0%; TSINetwork Rating: Average; www.embecta.com) took its current form on April 1, 2022, when Becton Dickinson & Co. (New York symbol BDX) spun off its Diabetes Care business as a separate firm. Investors received one share of embecta for every five common shares of Becton they held.