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]
TOYOTA MOTOR CO. ADRs $107 (New York symbol TM; Conservative Growth Portfolio, Manufacturing & In dustry sector; ADRs outstanding: 1.5 billion; Market cap: $160.5 billion; Price-to-sales ratio: 0.6; Dividend yield: 3.5%; TSINetwork Rating: Above Average; www.toyota....
The company sold 1.7 million vehicles in the quarter ended March 31, 2017, down 1.0% from a year earlier....
In March 2013, the company almost quadrupled in size with the $700 million purchase of its main rival, The Brick....
GREAT-WEST LIFECO INC. $35 (Toronto symbol GWO; Conservative Growth and Income Portfolios, Fi nance sector; shares outstanding: 989.9 million; Market cap: $34.6 billion; Price-to-sales ratio: 0.7; Dividend yield: 4.2%; TSINetwork Rating: Above Average; www.greatwestlifeco.com) is Canada’s second-largest insurance company, after Manulife Financial....
Since the split, HP Enterprise is up 23%, while HP Inc....
Consumers increasingly use smartphones to access the Internet instead of personal computers powered by computer chips. Industry leader Intel continues to adapt to those and other changes in the market—the same way it has since operations began in 1968.
The company has now applied its chip-making expertise to fastergrowing fields such as cloud computing (Internet file storage) and selfdriving cars....