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. $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.
HEWLETT-PACKARD ENTERPRISE CO. $24 is also a hold. The company (New York symbol HPE; Conservative Growth Portfolio; Manufacturing sector; Shares outstanding: 1.3 billion; Market cap: $31.2 billion; Price-to-sales ratio: 0.9; Dividend yield: 2.4%; TSINetwork Rating: Average; www.hpe.com) recently acquired Juniper Networks Inc. (New York symbol JNPR) for $14.0 billion in cash. Juniper designs and develops products and services for high-performance networks for the cloud, service providers and corporations. HP Enterprise expects the purchase will let it cut $600 million from its annual costs in three years.
FORD MOTOR CO. $13 is a hold. The automaker (New York symbol F; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.0 billion; Market cap: $52.0 billion; Price-to-sales ratio: 0.3; Dividend yield: 4.6%; TSINetwork Rating: Extra Risk; www.ford.com) plans to cut the number of electric-powered vehicles (EVs) it produces in favour of gasoline-powered and hybrid (gas and electric) cars and trucks. That’s partly because the U.S. government recently eliminated the $7,500 tax credit for EV buyers.
As a result, the company will write down its EV operations by $8.5 billion. If you include related restructuring actions, the entire plan will cost $19.5 billion. Of that total, $5.5 billion are cash payments.
As a result, the company will write down its EV operations by $8.5 billion. If you include related restructuring actions, the entire plan will cost $19.5 billion. Of that total, $5.5 billion are cash payments.
While current U.S. tariffs are not as high as those announced in April 2025, they are still increasing the costs for raw materials and other inputs at these four firms.
All four are now cutting costs and shifting their supply chains to protect their profits and market share. Even so, not all of them are buys right now.
All four are now cutting costs and shifting their supply chains to protect their profits and market share. Even so, not all of them are buys right now.
SIX FLAGS ENTERTAINMENT CORP. $15 is a hold. The company (New York symbol SIX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 101.5 million; Market cap: $1.5 billion; Price-to-sales ratio: 0.5; No dividend paid; TSINetwork Rating: Average; www.sixflags.com) took its current form on July 1, 2024, when Cedar Fair L.P. merged with rival amusement park operator Six Flags Entertainment (old New York symbol SIX) in an all-stock transaction. The combined firm operates 27 amusement parks, 15 water parks and 9 resort properties in the U.S., Canada, and Mexico.