Value Stocks

What are value stocks?

One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

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:

  1. Invest mainly in well-established companies;
  2. Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; the Consumer sector; Finance; Utilities);
  3. Downplay or avoid stocks in the broker/media limelight.

The Profits from Hidden Value

Learn everything you need to know in 7 Pro Secrets to Value Investing for a FREE special report for you.

Canadian Value Stocks:
How to Spot Undervalued Stocks
PLUS! Our Top 4 Value Stocks


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Value Stocks Post Archives

Enjoy a 5.0% yield from AT&T

Enjoy a 5.0% yield from AT&T

There’s plenty of value in being a dominant player in an essential market such as telecommunications. AT&T ’s strategic 5G and fiber-optic expansion is positioning it for future growth.

The company is also looking to cut costs by $2 billion over the next couple of years… Read More

Linamar reports a 17.2% earnings surge

Linamar reports a 17.2% earnings surge

We continue to believe there’s room for most investors to hold aggressive stocks, which typically are more leveraged (with more debt) and volatile than conservative stocks.

 Still, to cut your risk, you should limit aggressive stocks to no more than 20% of your total portfolio. We… Read More

Get 6.3% yield from AT&T

Get 6.3% yield from AT&T

In April 2022, this firm merged its WarnerMedia entertainment business with Discovery Inc. to form Warner Bros. Discovery (Nasdaq symbol WBD). Investors received 0.241917 shares of WBD as a tax-free distribution for each share they owned. At that time, shareholders owned 71% of the new… Read More

Linamar’s earnings just jumped 30.8%

Linamar’s earnings just jumped 30.8%

Recent acquisitions to capitalize on rising demand for EV parts and agricultural equipment have driven Linamar’s revenues 18.7% higher in the most recent quarter.

The company is making smart strategic moves while remaining cheap, as the stock trades at just 6.3 times the company’s 2024 earnings… Read More