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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HOWMET AEROSPACE INC....
STATE STREET CORP. $104 is a buy. The company (New York symbol STT; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 288.5 million; Market cap: $30.0 billion; Price-to-sales ratio: 2.4; Dividend yield: 2.9%; TSINetwork Rating: Average; www.statestreet.com) sells accounting and administrative services to operators of mutual funds and pension plans.
In the three months ended March 31, 2025, State Street’s fee revenue rose 4.7%, to $3.28 billion from $3.14 billion a year earlier....
On October 16, 2023, the old NCR Corp. (New York symbol NCR) split itself into two separate firms. Investors received one share of NCR Atleos (which makes ATMs) for every two NCR shares they held. The remaining firm changed its name to NCR Voyix.
Since the split, NCR Atleos is up 40%, while the former parent has dropped 25%....
In response, the company has launched big restructuring plan to better align its costs with revenue....
These two financial services firms continue to benefit from plans to focus on their core businesses. While we like both, we prefer IGM for your new buying due to its modestly lower p/e and higher dividend yield.
GREAT-WEST LIFECO INC. $50 is a hold. The insurance company (Toronto symbol GWO; Conservative Growth and Income Portfolios, Finance sector; shares outstanding: 930.7 million; Market cap: $46.5 billion; Price-to-sales ratio: 2.1; Dividend yield: 4.9%; TSINetwork Rating: Above Average; www.greatwestlifeco.com) is Canada’s second-largest life insurer, after Manulife Financial....