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
BECTON DICKINSON & CO. $186 is a buy. The medical device maker (New York symbol BDX; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 286.6 million; Market cap: $53.3 billion; Price-to-sales ratio: 2.5; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.bd.com) has agreed to merge its Biosciences and Diagnostic Solutions operations with lab equipment maker Waters Corp. (New York symbol WAT).
FORD MOTOR CO. $12 is a hold. The automaker (New York symbol F; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.0 billion; Market cap: $48.0 billion; Price-to-sales ratio: 0.3; Dividend yield: 5.1%; TSINetwork Rating: Extra Risk; www.ford.com) expects new U.S. tariffs on steel, aluminum and other materials will cut its 2025 EBIT (earnings before interest and taxes) by $2 billion, to between $6.5 billion to $7.5 billion. The midpoint of that range is down 42.3% from $10.4 billion in 2024.
TOYOTA MOTOR CO. ADRs $198 is a buy. The stock (New York symbol TM; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.3 billion; Market cap: $257.4 billion; Price-to-sales ratio: 0.8; Dividend yield: 3.1%; TSINetwork Rating: Above Average; www.toyota.com) gives you exposure to the world’s largest automaker by production. It gets about half of its sales from markets outside of Japan.
Toyota sold 2.41 million vehicles in its fiscal 2026 first quarter ended June 30, 2025. That’s up 7.1% from 2.25 million a year earlier.
Toyota sold 2.41 million vehicles in its fiscal 2026 first quarter ended June 30, 2025. That’s up 7.1% from 2.25 million a year earlier.
CONAGRA BRANDS INC. $19 is a buy for long-term gains. The company (New York symbol CAG; Income Portfolio, Consumer sector; Shares outstanding: 477.4 million; Market cap: $9.1 billion; Price-to-sales ratio: 0.8; Dividend yield: 7.4%; TSINetwork Rating: Above Average; www.conagrabrands.com) makes a variety of popular foods, including Hunt’s tomato sauce, Orville Redenbacher popcorn and Reddi-wip whipped cream.
The company is selling some of its slower-growing businesses. For example, it recently sold its Chef Boyardee brand of ready-to-eat pasta meals for $601.2 million. It also sold its frozen fish business, which includes the Van De Kamp’s and Mrs. Paul’s brands, for $42.4 million.
The company is selling some of its slower-growing businesses. For example, it recently sold its Chef Boyardee brand of ready-to-eat pasta meals for $601.2 million. It also sold its frozen fish business, which includes the Van De Kamp’s and Mrs. Paul’s brands, for $42.4 million.
FEDEX CORP. $234 remains a buy. The company (New York symbol FDX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 234.0 million; Market cap: $54.8 billion; Price-to-sales ratio: 0.6; Dividend yield: 2.5%; TSINetwork Rating: Average; www.fedex.com) provides courier services throughout the U.S. as well 220 other countries.
Canada’s big banks continue to report strong earnings growth, even in the face of tariff uncertainty. That’s because their solid balance sheets put them in a strong position to absorb higher loan losses.
We still recommend all investors strive to own two to three of these top banks.
We still recommend all investors strive to own two to three of these top banks.
CIBC has made strong progress in improving the performance of its main operations in Canada. That includes better customer service and expanding the number of products the bank sells per customer. Those improvements have helped to lift the stock more than 30% in the past year.
While CIBC has the highest exposure to the domestic housing market among Canada’s Big Five banks, it cuts this risk by keeping the value of its mortgages and other loans well below the appraised value of those properties.
The bank also continues to cut its operating costs, particularly as more of its customers opt to use the Internet instead of physical branches. Those savings will let CIBC keep rewarding investors with higher dividends and share buybacks.
While CIBC has the highest exposure to the domestic housing market among Canada’s Big Five banks, it cuts this risk by keeping the value of its mortgages and other loans well below the appraised value of those properties.
The bank also continues to cut its operating costs, particularly as more of its customers opt to use the Internet instead of physical branches. Those savings will let CIBC keep rewarding investors with higher dividends and share buybacks.
Despite the new tariffs and the elimination of the de minimis exemption that lets shipments valued at less than $800 enter the U.S. duty free, eBay’s shares are up 60% since the start of 2025. That’s mainly due to its leading position with collectors of high-value sneakers and jewellery. A new AI shopping tool should also spur its earnings—and the stock—higher over the next few years.
TEGNA INC. $21 is a hold. The company (New York symbol TGNA, Conservative Growth Portfolio, Consumer sector: Shares outstanding: 160.9 million; Market cap: $3.4 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.4%; TSINetwork Rating: Average; www.tegna.com) owns 64 TV stations and two radio stations in 51 U.S. markets.
In June 2015, Gannett Co. Inc. (New York symbol GCI) spun off its newspaper operation as a separate company operating under the Gannett name.
In June 2015, Gannett Co. Inc. (New York symbol GCI) spun off its newspaper operation as a separate company operating under the Gannett name.
TORONTO-DOMINION BANK $101 remains a buy for long-term gains and income. Shares in the lender (Toronto symbol TD; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.8 billion; Market cap: $156.6 billion; Price-to-sales ratio: 2.7; Dividend yield: 4.8%; TSINetwork Rating: Above Average; www.td.com) are now up over 30% since the start of the year. That’s mainly because TD has sold its entire 10.1% stake in Charles Schwab Corp. (New York SCHW) for about $20 billion. It’s using $8 billion of that cash to buy back 5.7% of its outstanding shares.