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
Canadian Tire’s shares have held up well in the past year despite tariffs and concerns that rising gasoline prices would hurt consumer spending. That’s partly due to the “Buy Canadian” trend as shoppers avoid U.S.-based chains. The company’s investments to better its stores and loyalty plans are also helping to spur earnings.
CANADIAN TIRE CORP. (class A non-voting) is a buy. The company (Toronto symbols CTC (voting) $210 and CTC.A (non-voting) $188; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 53.4 million; Market cap: $11.0 billion; Price-to-sales ratio: 0.6; Dividend yield: 3.8%; TSINetwork Rating: Above Average; www.canadiantire.ca) operates 502 Canadian Tire stores. They sell automotive parts and services, and household and sporting goods; franchisees run most locations.
CANADIAN TIRE CORP. (class A non-voting) is a buy. The company (Toronto symbols CTC (voting) $210 and CTC.A (non-voting) $188; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 53.4 million; Market cap: $11.0 billion; Price-to-sales ratio: 0.6; Dividend yield: 3.8%; TSINetwork Rating: Above Average; www.canadiantire.ca) operates 502 Canadian Tire stores. They sell automotive parts and services, and household and sporting goods; franchisees run most locations.
These top telecoms have cut their dividends to help pay down debt. The resulting stronger balance sheets improve their long-term prospects, particularly as competition for new subscribers intensifies.
BCE INC. $32 is a buy. The company (Toronto symbol BCE; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 932.5 million; Market cap: $29.8 billion; Price-to-sales ratio: 1.2; Dividend yield: 5.5%; TSINetwork Rating: Above Average; www.bce.ca) has 13.77 million wireless users across Canada. It also has 4.47 million high-speed Internet users and 2.16 million fibre-optic TV subscribers; it provides traditional telephone service to 1.57 million residential customers in Ontario, Quebec, Manitoba and the Atlantic provinces. Its other operations include TV and radio stations.
BCE INC. $32 is a buy. The company (Toronto symbol BCE; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 932.5 million; Market cap: $29.8 billion; Price-to-sales ratio: 1.2; Dividend yield: 5.5%; TSINetwork Rating: Above Average; www.bce.ca) has 13.77 million wireless users across Canada. It also has 4.47 million high-speed Internet users and 2.16 million fibre-optic TV subscribers; it provides traditional telephone service to 1.57 million residential customers in Ontario, Quebec, Manitoba and the Atlantic provinces. Its other operations include TV and radio stations.
The collapse of the recent round of trade negotiations between Canada and the U.S., as well as uncertainty over the broader Canada-U.S.-Mexico trade agreement (CUSMA), adds risk for auto part makers like Linamar. However, the company has a long history of successfully adapting to changing tariffs and technologies. Moreover, it’s hard for automakers to shift to alternative suppliers, which should further cushion any tariff impact.
LINAMAR CORP. $99 remains a buy for long-term gains. The company (Toronto symbol LNR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 59.0 million; Market cap: $5.8 billion; Price-to-sales ratio: 0.5; Dividend yield: 1.3%; TSINetwork Rating: Average; www.linamar.com) has two main businesses: the Mobility division (75% of revenue in the latest quarter, 71% of earnings) makes a variety of automotive parts, including transmissions, cylinder heads and cylinder blocks; and the Industrial division (25%, 29%) makes self-propelled, scissor-type work platforms under the Skyjack brand, as well as agricultural harvesting equipment.
LINAMAR CORP. $99 remains a buy for long-term gains. The company (Toronto symbol LNR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 59.0 million; Market cap: $5.8 billion; Price-to-sales ratio: 0.5; Dividend yield: 1.3%; TSINetwork Rating: Average; www.linamar.com) has two main businesses: the Mobility division (75% of revenue in the latest quarter, 71% of earnings) makes a variety of automotive parts, including transmissions, cylinder heads and cylinder blocks; and the Industrial division (25%, 29%) makes self-propelled, scissor-type work platforms under the Skyjack brand, as well as agricultural harvesting equipment.
The shares of Canada’s big banks are close to record highs. As a result, they now trade at historically high multiples to their projected earnings.
Even so, we continue to recommend all Canadian investors strive to own two to three of them. That’s due to the high credit quality of their lending portfolios. As well, fee income from their expanding wealth management operations and trading businesses help cut their reliance on new loan volumes and rising interest rates.
ROYAL BANK OF CANADA $286 is a buy. Canada’s largest bank (Toronto symbol RY; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.4 billion; Market cap: $400.4 billion; Price-to-sales ratio: 5.7; Dividend yield: 2.5%; TSINetwork Rating: Above Average; www.rbc.com) continues to benefit from its March 2024 acquisition of the Canadian operations of U.K.-based HSBC Holdings plc (New York symbol HSBC) for $15.5 billion. So far, many of HSBC’s clients have remained with Royal.
Even so, we continue to recommend all Canadian investors strive to own two to three of them. That’s due to the high credit quality of their lending portfolios. As well, fee income from their expanding wealth management operations and trading businesses help cut their reliance on new loan volumes and rising interest rates.
ROYAL BANK OF CANADA $286 is a buy. Canada’s largest bank (Toronto symbol RY; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.4 billion; Market cap: $400.4 billion; Price-to-sales ratio: 5.7; Dividend yield: 2.5%; TSINetwork Rating: Above Average; www.rbc.com) continues to benefit from its March 2024 acquisition of the Canadian operations of U.K.-based HSBC Holdings plc (New York symbol HSBC) for $15.5 billion. So far, many of HSBC’s clients have remained with Royal.
TD’s shares are up about 150% since its 2024 settlement with U.S. regulators over failed anti-money laundering protections at its retail operations there.
We fully expect TD shares to continue their impressive rise. The bank’s new plan to use AI to lower its operating costs will be a significant driver of those gains. The plan will also let TD continue to raise your dividend and buy back its shares. Both of those add investor value.
TORONTO-DOMINION BANK $165 is a buy. The bank (Toronto symbol TD; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.6 billion; Market cap: $264.0 billion; Price-to-sales ratio: 4.3; Dividend yield: 2.7%; TSINetwork Rating: Above Average; www.td.com) has four main divisions:
We fully expect TD shares to continue their impressive rise. The bank’s new plan to use AI to lower its operating costs will be a significant driver of those gains. The plan will also let TD continue to raise your dividend and buy back its shares. Both of those add investor value.
TORONTO-DOMINION BANK $165 is a buy. The bank (Toronto symbol TD; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.6 billion; Market cap: $264.0 billion; Price-to-sales ratio: 4.3; Dividend yield: 2.7%; TSINetwork Rating: Above Average; www.td.com) has four main divisions:
These two utilities continue to invest in new projects and upgrade their existing plants to meet rising electricity demand from new artificial intelligence datacentres. We continue to prefer Alliant, which has a much lower reliance on coal than Ameren.
ALLIANT ENERGY CORP. $69 is a buy. The utility (Nasdaq symbol LNT; Income Portfolio, Utilities sector; Shares outstanding: 259.3 million; Market cap: $17.9 billion; Price-to-sales ratio: 4.0; Dividend yield: 3.1%; TSINetwork Rating: Average; www.alliantenergy.com) sells power and natural gas to 1.43 million customers in Wisconsin and Iowa.
ALLIANT ENERGY CORP. $69 is a buy. The utility (Nasdaq symbol LNT; Income Portfolio, Utilities sector; Shares outstanding: 259.3 million; Market cap: $17.9 billion; Price-to-sales ratio: 4.0; Dividend yield: 3.1%; TSINetwork Rating: Average; www.alliantenergy.com) sells power and natural gas to 1.43 million customers in Wisconsin and Iowa.
GEN DIGITAL INC. $30 continues to attract new customers to its cybersecurity services, including Norton, LifeLock, Avast, Avira, AVG and Ccleaner. As of July 3, 2026, the company had about 500 million users, with 81 million of them paying customers, up from 76 million a year ago. As a result, the company’s revenue in its fiscal 2027 first quarter, ended July 3, 2026, rose 6.3%, to $1.24 billion from $986 million a year earlier. Excluding one-time items, earnings rose 14.6%, to $431 million from $376 million. Due to fewer shares outstanding, per-share earnings gained 18.3%, to $0.71 a share from $0.60.
LEON’S FURNITURE LTD. $24 is buying the 50% of its Edmonton distribution centre that it does not already own for $45.75 million. Owning 100% of this facility will help the company improve merchandise selection and support services at its stores in Western Canada.
Meantime, Leon’s sales in the three months ended June 30, 2026 fell 2.0%, to $631.2 million from $644.1 million a year earlier. Same-store sales also fell 2.2% as consumers at its Leon’s and The Brick furniture stores opted for less-expensive items.
Meantime, Leon’s sales in the three months ended June 30, 2026 fell 2.0%, to $631.2 million from $644.1 million a year earlier. Same-store sales also fell 2.2% as consumers at its Leon’s and The Brick furniture stores opted for less-expensive items.
Genuine Parts recently denied media reports that it plans to sell its automotive operations. Instead, it will move ahead with its current plan to separate into two new companies—automotive and industrial parts. Investors tend to prefer pure-play firms, so we expect the split will work out well for Genuine’s shareholders.
GENUINE PARTS CO. $130 is a buy. The company (New York symbol GPC; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 137.9 million; Market cap: $17.9 billion; Price-to-sales ratio: 0.7; Dividend yield: 3.3%; TSINetwork Rating: Average; www.genpt.com) sells replacement auto parts through 10,855 company-owned and independent retail stores in North America, Europe, Australia and New Zealand.
GENUINE PARTS CO. $130 is a buy. The company (New York symbol GPC; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 137.9 million; Market cap: $17.9 billion; Price-to-sales ratio: 0.7; Dividend yield: 3.3%; TSINetwork Rating: Average; www.genpt.com) sells replacement auto parts through 10,855 company-owned and independent retail stores in North America, Europe, Australia and New Zealand.
KRAFT HEINZ CO. $28 has formed a new alliance with Walt Disney Co. (New York symbol DIS) that will make it the exclusive supplier of certain foods, including Heinz Ketchup, Philadelphia Cream Cheese and Mac and Cheese dinner, to Disney’s theme parks and cruise ships. The deal also lets Kraft display Disney characters on its products and promotional materials. (Note—Disney is a recommendation of Power Growth Investor, our newsletter that focuses on aggressive stocks.)