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
FORD MOTOR CO. $12 sold 509,764 vehicles in the U.S. in the third quarter of 2026, down 6.6% from 545,522 a year earlier. That’s mainly because the company phased out some models. Aluminum shortages also hurt production. Slower sales of sport utility vehicles (down 17.0%) offset higher sales of trucks (up 0.5%) and passenger cars (up 7.5%). Moreover, sales of electric vehicles (including hybrids) dropped 41.3% due to the expiry of federal tax credits in 2025.
The shares of these three leading foodmakers have suffered in the past few years as consumers cut back on packaged foods. Rising costs for raw materials, packaging and transportation have also hurt their earnings.
All three are now adjusting their products to remove excess salt and sugar. They are also simplifying their supply chains to improve their long-term profitability.
All three are now adjusting their products to remove excess salt and sugar. They are also simplifying their supply chains to improve their long-term profitability.
SAPUTO INC. $39 (www.saputo.com) is a hold. The dairy producer is forming a separate division to focus on ingredients such as whey protein. Demand for these protein products is growing strongly as consumers shift to healthier foods. The company is also increasing protein production at its plant in Waupun, Wisconsin. However, the uncertainty over the future of Canada’s supply management system for dairy products adds risk. Saputo is a hold.
These two businesses, held by holding company Power Corp., continue to hit new highs, mainly due to rising stock markets. Even if markets decline, their recent acquisitions set them up for even more gains in the coming years.
GREAT-WEST LIFECO INC. $88 is a buy.
GREAT-WEST LIFECO INC. $88 is a buy.
CANADA PACKERS INC. $14 has seen its stock fall about 30% since its spinoff from Maple Leaf Foods in October 1, 2025.
The pork producer raises hogs at about 200 farms in Manitoba, Saskatchewan and Alberta, and the share price decline reflects the higher costs for animal feed as well as fuel. Tariffs on exports to the U.S., China and other countries also add to its risk.
The pork producer raises hogs at about 200 farms in Manitoba, Saskatchewan and Alberta, and the share price decline reflects the higher costs for animal feed as well as fuel. Tariffs on exports to the U.S., China and other countries also add to its risk.
TOYOTA MOTOR CO. ADRs $190 is a buy. Japan’s largest automaker sold 2.40 million vehicles in its fiscal 2027 first quarter, ended June 30, 2026, down 0.7% from a year-earlier. That’s due to the company decision to cut production of gasoline-powered vehicles for the Middle East region in light of the disruptions caused by the Iran war.
Still, for all of fiscal 2027, Toyota expects its sales will rise 1.1% to 9.70 million vehicles.
Still, for all of fiscal 2027, Toyota expects its sales will rise 1.1% to 9.70 million vehicles.
American Depositary Receipts (ADRs) that trade on New York offer investors a great way to buy some of the world’s top companies.
An ADR is a U.S. traded proxy for a foreign stock and represents a specified number of shares in that foreign corporation. They trade on U.S. stock markets, just like regular stocks. The foreign company must also provide detailed financial information to U.S. regulators.
An ADR is a U.S. traded proxy for a foreign stock and represents a specified number of shares in that foreign corporation. They trade on U.S. stock markets, just like regular stocks. The foreign company must also provide detailed financial information to U.S. regulators.
GENERAL MILLS INC. $36 is a hold. The company reported lower sales and earnings for its latest quarter as consumers continued to shift away from packaged foods. Those include lower sales of its main brands: Cheerios (cereal), Pillsbury (baking dough) and Progresso (soups and salads).
In its fiscal 2027 first quarter, ended August 30, 2026, General Mills’ sales fell 2.8%, to $4.39 billion from $4.52 billion a year earlier. If you factor out businesses the company bought and sold, as well as currency rates, sales were flat. Earnings before unusual items also declined 12.8%, to $0.75 from $0.86.
In its fiscal 2027 first quarter, ended August 30, 2026, General Mills’ sales fell 2.8%, to $4.39 billion from $4.52 billion a year earlier. If you factor out businesses the company bought and sold, as well as currency rates, sales were flat. Earnings before unusual items also declined 12.8%, to $0.75 from $0.86.
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.