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
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.
BAXTER INTERNATIONAL INC. $19 is a now a hold. The company (New York symbol BAX; Conservative Growth Portfolio; Manufacturing sector; Shares outstanding: 511.6 million; Market cap: $9.7 billion; Price-to-sales ratio: 0.9; Dividend yield: 2.7%; TSINetwork Rating: Average; www.baxter.com) makes specialized equipment for hospitals, including intensive-care-unit beds and electronic diagnostic systems.
In July 2015, eBay spun off its PayPal business as a separate firm—investors received one PayPal share for each eBay share they held. Since then, eBay has jumped over 210%, while PayPal has gained 70%. We still like the outlook for both.
EBAY INC. $82 is a buy. The company (Nasdaq symbol EBAY; Finance sector; Shares outstanding: 452.0 million; Market cap: $37.1 billion; Price-to-sales ratio: 3.7; Dividend yield: 1.4%; TSINetwork Rating: Above Average; www.ebay.com) operates e-commerce websites, in over 190 countries.
EBAY INC. $82 is a buy. The company (Nasdaq symbol EBAY; Finance sector; Shares outstanding: 452.0 million; Market cap: $37.1 billion; Price-to-sales ratio: 3.7; Dividend yield: 1.4%; TSINetwork Rating: Above Average; www.ebay.com) operates e-commerce websites, in over 190 countries.
STANLEY BLACK & DECKER INC. $72 remains a buy. The company (New York symbol SWK; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 154.9 million; Market cap: $11.2 billion; Price-to-sales ratio: 0.7; Dividend yield: 4.6%; TSINetwork Rating: Average; www.stanleyblackanddecker.com) is one of the world’s largest makers of hand and power tools.
INTACT FINANCIAL, $282.38, is a Power Buy. The insurer (Toronto symbol IFC; TSINetwork Rating: Average) (www.intactfc.com; Shares outstanding: 177.7 million; Market cap: $50.2 billion; Dividend yield: 1.9%) is Canada’s largest provider of property and casualty coverage: its policies cover more than five million individuals and businesses. Intact Insurance, Canada BrokerLink and belairdirect are its major brands.
In a bid to add value for investors, the company acquired OneBeacon Insurance Group for $1.7 billion U.S. in 2017. The Minnesota-based insurance holding company focuses on property-casualty coverage. Through its businesses, the firm provides a range of specialty insurance products (marine, sports, entertainment and more).
In a bid to add value for investors, the company acquired OneBeacon Insurance Group for $1.7 billion U.S. in 2017. The Minnesota-based insurance holding company focuses on property-casualty coverage. Through its businesses, the firm provides a range of specialty insurance products (marine, sports, entertainment and more).
NCR ATLEOS CORP. $37 (www.ncratleos.com) is a hold. On October 16, 2023, the old NCR Corp. (New York symbol NCR) split itself into two separate firms. One (called NCR Atleos) focuses on automated teller machines, and the other (called NCR Voyix, see below) focuses on digital commerce businesses. Investors received one share of NCR Atleos for every two NCR shares they held. The shares of the new company are now up over 80% since the split and trade at 9.2 times the $4.01 a share it will probably earn in 2025. That low p/e reflects the shift away from ATMs to online banking. NCR Atleos is a hold.
TRANSCONTINENTAL INC. $20 is a buy for aggressive investors. The company (Toronto symbol TCL.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 83.6 million; Market cap: $1.7 billion; Price-to-sales ratio: 0.6; Dividend yield: 4.5%; TSINetwork Rating: Average; www.tctranscontinental.com) is Canada’s leading printer of newspapers, advertising flyers, magazines and books. It also makes plastic packaging for consumer products.
Transcontinental has developed a new type of plastic film called BOPE (advanced biaxially oriented polyethylene).
Transcontinental has developed a new type of plastic film called BOPE (advanced biaxially oriented polyethylene).