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
Bank of Montreal is shifting its U.S. operations to regions with better growth prospects. That should spur earnings for this business, which now accounts for 40% of overall revenue. More broadly, the bank is also using AI to speed up routine transactions and improve efficiency.
BANK OF MONTREAL $211 is a buy. The bank (Toronto symbol BMO; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 722.1 million; Market cap: $152.4 billion; Price-to-sales ratio: 4.0; Dividend yield: 3.2%; TSINetwork Rating: Above Average; www.bmo.com) is now Canada’s third-largest bank by market capitalization after Royal Bank (#1) and TD Bank (#2).
BANK OF MONTREAL $211 is a buy. The bank (Toronto symbol BMO; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 722.1 million; Market cap: $152.4 billion; Price-to-sales ratio: 4.0; Dividend yield: 3.2%; TSINetwork Rating: Above Average; www.bmo.com) is now Canada’s third-largest bank by market capitalization after Royal Bank (#1) and TD Bank (#2).
IGM FINANCIAL INC. $77 is a buy. The company (Toronto symbol IGM; Conservative Growth Portfolio, Finance sector; Shares outstanding: 234.2 million; Market cap: $18.0 billion; Price-to-sales ratio: 4.7; Dividend yield: 3.2%; TSINetwork Rating: Above Average; www.igmfinancial.com) is Canada’s largest independent mutual-fund provider. It also offers ETFs and wealth management services. Power Corp. owns 62.5% of the firm.
The stock is up 24% since the start of 2026, and hit a record high of $77 in May. That’s due to the recent surge in stock market values—IGM’s fee income rises and falls with the value of the mutual funds and other securities it manages.
The stock is up 24% since the start of 2026, and hit a record high of $77 in May. That’s due to the recent surge in stock market values—IGM’s fee income rises and falls with the value of the mutual funds and other securities it manages.
TORONTO-DOMINION BANK $148 is now up a whopping 85% since its censure in October 2024 by U.S. banking regulators for allowing, and in some cases facilitating, money laundering transactions at its U.S. retail banking operations. In addition to a $3.09 billion U.S. penalty, regulators also imposed an asset cap on the bank’s U.S. operations.
TD’s new growth plan is a big part of the stock’s turnaround. The plan involves expanding earnings from its fee-based businesses, including wealth management and insurance. It’s also using artificial intelligence to speed up transactions and better monitor credit risks.
TD’s new growth plan is a big part of the stock’s turnaround. The plan involves expanding earnings from its fee-based businesses, including wealth management and insurance. It’s also using artificial intelligence to speed up transactions and better monitor credit risks.
CANADIAN IMPERIAL BANK OF COMMERCE $153 continues to cut risk associated with commercial real estate lending by selling troubled loans and re-financing others. In its fiscal 2026 first quarter, ended January 31, 2026, gross impaired loans as a percentage of its total Canadian and U.S. real estate loans fell to 0.75% from 1.35% a year earlier. As well, loans to condominium developers account for less than 1% of its total loans.
That improving credit quality has spurred the stock by 70% in the past year. Even so, it trades at an attractive 13.2 times the $10.38 a share that CIBC will likely earn in fiscal 2026. The $4.28 dividend yields 2.8%.
That improving credit quality has spurred the stock by 70% in the past year. Even so, it trades at an attractive 13.2 times the $10.38 a share that CIBC will likely earn in fiscal 2026. The $4.28 dividend yields 2.8%.
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.