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.
[text_ad]
Read More
Close
Value Stocks Library Archive
RTX CORP. $185 is a buy. The company (New York symbol RTX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.3 billion; Market cap: $240.5 billion; Price-to-sales ratio: 2.8; Dividend yield: 1.6%; TSINetwork Rating: Above Average; www.rtx.com) has three divisions: Pratt & Whitney makes jet engines; Collins Aerospace makes aircraft control systems; and Raytheon makes a variety of military equipment such as missile defence systems.
The company has agreed to sell its Blue Canyon Technologies business, which makes components for satellites and spacecraft, to MDA Space Ltd. (Toronto symbol MDA) for $620 million. It expects to complete the sale by the end of 2026.
The company has agreed to sell its Blue Canyon Technologies business, which makes components for satellites and spacecraft, to MDA Space Ltd. (Toronto symbol MDA) for $620 million. It expects to complete the sale by the end of 2026.
The latest reading of U.S. core inflation is 3.4% for May—well above the 2% target. That could well prompt the U.S. Federal Reserve to raise its benchmark lending rate in the next few months. While higher rates could lead to greater loan losses for these two big banks, they would also boost their interest income.
Meantime, J.P. Morgan and Wells Fargo will continue to benefit from their expanding wealth management and securities-trading operations, which are less exposed to interest rates. Both banks also remain well capitalized, positioning them to weather future economic shocks.
Meantime, J.P. Morgan and Wells Fargo will continue to benefit from their expanding wealth management and securities-trading operations, which are less exposed to interest rates. Both banks also remain well capitalized, positioning them to weather future economic shocks.
Despite U.S. tariffs, the shares of auto parts maker Linamar are hitting new highs. That’s mainly because 90% of its revenue comes from products that comply with the current CUSMA (Canada-U.S.-Mexico) trade agreement. While uncertainty over the pact’s future adds risk, Linamar’s plan to diversify into new businesses like robotics bodes well for investors.
So far, Maple Leaf Foods’ spinoff of its pork processing business as Canada Packers has pushed both stocks higher. Despite that gain, tariffs and rising costs for fuel and animal feed could slow the new firm’s earnings growth.
CANADA PACKERS INC. $19 is a hold. The company (Toronto symbol CPKR; Consumer sector; Shares outstanding: 29.8 million; Market cap: $566.2 million; Price-to-sales ratio: 0.3; Dividend yield: 4.8%; TSINetwork Rating: Average; www.canadapackers.com) took its current form on October 1, 2025, when Maple Leaf Foods Inc. (Toronto symbol MFI) spun off its fresh pork operations.
CANADA PACKERS INC. $19 is a hold. The company (Toronto symbol CPKR; Consumer sector; Shares outstanding: 29.8 million; Market cap: $566.2 million; Price-to-sales ratio: 0.3; Dividend yield: 4.8%; TSINetwork Rating: Average; www.canadapackers.com) took its current form on October 1, 2025, when Maple Leaf Foods Inc. (Toronto symbol MFI) spun off its fresh pork operations.
LEON’S FURNITURE LTD. $24, through its network of 299 stores, is reporting sales of $557.2 million for the three months ended March 31, 2026. That’s down 3.8% from $579.5 million a year earlier. Same-store sales also fell, dropping 4.2% as poor weather cut traffic to its outlets, which operate under the Leon’s and The Brick banners.
Excluding one-time items, earnings declined 16.6% to $20.1 million from $24.1 million. Per-share earnings fell 17.1% to $0.29 from $0.35, on more shares outstanding.
Excluding one-time items, earnings declined 16.6% to $20.1 million from $24.1 million. Per-share earnings fell 17.1% to $0.29 from $0.35, on more shares outstanding.
GREAT-WEST LIFECO INC. $82 is up over 60% in the past year, thanks to strong demand for its workplace pension programs, especially in the U.S. Rising stock market values are also lifting earnings at its wealth management businesses.
In the three months ended March 31, 2026, Great-West’s revenue fell 25.6%, to $ 8.18 billion from $10.99 billion a year earlier. That’s mainly because the current quarter included a loss on its investment portfolio of $2.07 billion compared to a gain of $1.26 billion a year ago.
In the three months ended March 31, 2026, Great-West’s revenue fell 25.6%, to $ 8.18 billion from $10.99 billion a year earlier. That’s mainly because the current quarter included a loss on its investment portfolio of $2.07 billion compared to a gain of $1.26 billion a year ago.
Ford is planing to build more hybrid (gas and electric) cars and trucks as demand for pure electric vehicles (EVs) remains weak. The company should also benefit as it uses part of its battery manufacturing capacity to tap rising demand from AI datacentres. These moves should spur its earnings and support its above-average dividend yield.
FORD MOTOR CO. $16 is a now buy for aggressive investors. The company (New York symbol F; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 3.9 billion; Market cap: $62.4 billion; Price-to-sales ratio: 0.3; Dividend yield: 3.8%; TSINetwork Rating: Extra Risk; www.ford.com) is the second-largest U.S. automaker after General Motors with 13.2% of the market. It top-selling models are the F-150 pickup truck and Explorer sport-utility vehicle.
FORD MOTOR CO. $16 is a now buy for aggressive investors. The company (New York symbol F; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 3.9 billion; Market cap: $62.4 billion; Price-to-sales ratio: 0.3; Dividend yield: 3.8%; TSINetwork Rating: Extra Risk; www.ford.com) is the second-largest U.S. automaker after General Motors with 13.2% of the market. It top-selling models are the F-150 pickup truck and Explorer sport-utility vehicle.
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.