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
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.
STANLEY BLACK & DECKER INC. $85 remains a buy. The company (New York symbol SWK; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 154.9 million; Market cap: $13.2 billion; Price-to-sales ratio: 0.7; Dividend yield: 3.9%; TSINetwork Rating: Average; www.stanleyblackanddecker.com) is one of the world’s largest makers of hand and power tools. The company is now selling its aerospace products business to Howmet Aerospace (page 23) business for $1.8 billion. It plans to use the cash to pay down its long-term debt of $4.70 billion (as of December 31, 2025), which is equal to 36% of its market cap.
OVINTIV INC. $65 is a buy. The company (Toronto symbol OVV; Conservative Growth Portfolio, Resources sector; Shares outstanding: 284.2 million; Market cap: $18.5 billion; Price-to-sales ratio: 1.4; Dividend yield: 2.6%; TSINetwork Rating: Average; www.ovintiv.com) recently completed its acquisition of NuVista Energy Ltd. (Toronto symbol NVA), which operates oil and gas properties in the Alberta portion of the Montney Basin. That nicely complements the company’s existing B.C. Montney operations.
FINNING INTERNATIONAL INC. $88 is a buy. The company (Toronto symbol FTT; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 130.8 million; Market cap: $11.5 billion; Price-to-sales ratio: 1.0; Dividend yield: 1.4%; TSINetwork Rating: Above Average; www.finning.com) sells and services Caterpillar-brand heavy equipment (such as tractors, backhoe loaders, off-highway trucks and drills) in Western Canada but also South America, the U.K. and Ireland. Its main customers are in the oil and gas, mining, forestry-products and construction industries.
STATE STREET CORP. $128 is a buy. The company (New York symbol STT; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 279.1 million; Market cap: $35.7 billion; Price-to-sales ratio: 2.6; Dividend yield: 2.6%; TSINetwork Rating: Average; www.statestreet.com) sells accounting and administrative services to operators of mutual funds and pension plans. In the three months ended December 31, 2025, State Street’s revenue rose 7.5%, to $3.67 billion from $3.41 billion a year earlier. That’s mainly because improving stock markets lifted assets under custody and administration by 15.6%.
The share price for each of these Japanese automakers has held up over the past year. That’s despite new U.S. tariffs and slowing consumer demand for electric vehicles. Toyota and Honda are managing costs effectively while continuing to invest in new technologies; their successful balancing act should lead to long-term earnings growth. TOYOTA MOTOR CO. ADRs $219 is a buy. The company (New York symbol TM; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.3 billion; Market cap: $284.7 billion; Price-to-sales ratio: 0.9; Dividend yield: 2.8%; TSINetwork Rating: Above Average; www.toyota.com) is Japan’s largest automaker by production volume.
The shares of three foodmakers have fallen sharply in recent months, reflecting several pressures, including higher costs from tariffs, a shift toward healthier diets, and the growing use of weight-loss drugs such as Ozempic. In response, all three companies are cutting costs and improving product quality—steps that should help revive sales and boost profits. Stronger earnings should also support their dividends. We view all three as high-quality buys for patient investors.
Transcontinental entered the packaging business in 2014 with the purchase of Capri Packaging. Due to increasingly strong competition from larger firms, it has now decided to sell these operations. The company will distribute most of the proceeds to its shareholders. Following the sale, Transcontinental will focus on expanding its legacy of commercial printing and media operations.
TERADATA CORP. $30 is a hold. The company (New York symbol TDC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 93.2 million; Market cap: $2.8 billion; Price-to-sales ratio: 1.7; No dividend paid; TSINetwork Rating: Average; www.teradata.com) makes computers and software to capture and store large amounts of data for its clients—individual businesses. Teradata then analyzes this information and identifies consumer buying habits and other trends.
Companies continue to cut their spending on computing and consulting services due to the current economic uncertainty.
Companies continue to cut their spending on computing and consulting services due to the current economic uncertainty.
A good way to diversify your Finance sector holdings is with non-bank firms, such as T. Rowe Price and Broadridge. Both are leaders in their niche markets, which cuts your risk. Their new businesses and alliances will also spur their earnings.