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

Finning trades at a low valuation

Finning trades at a low valuation

In the wake of the COVID-19 pandemic, governments in Canada and elsewhere continue to invest in new public works projects such as roads, mass transit systems and hospitals. Those investments are fuelling strong orders for Finning as well as demand for its maintenance and repair… Read More

Get a high 5.0% from Conagra Brands

Get a high 5.0% from Conagra Brands

Conagra Brands owns some of the best-known brands in the industry, which should help it pass along its rising costs to consumers.

Those strong brands have ensured that higher prices have not significantly hurt its volumes. The company is also improving its efficiency, which helps… Read More

Molson Coors is still facing major competition

Molson Coors is still facing major competition

Declining beer demand and a shrinking market segment have contributed to the underperformance of key brands at Molson Coors.

While the company’s earnings are rising, so are costs and the company is facing increasingly strong competition from larger rivals. The revenue and earnings gains may not… Read More

Get a 4.5% yield from cheap Royal Bank shares

Get a 4.5% yield from cheap Royal Bank shares

Royal Bank is celebrated as a conservative, blue-chip stock offering a dependable divi-dend yield.

But there’s more. It has also returned our investors a massive 1,600.7% gain since we first recommended it in April 1995. That gain dramatically outpaced the 386.0% rise for the S&P/TSX Composite… Read More

A 48.9% earnings jump isn’t enough for Molson Coors

A 48.9% earnings jump isn’t enough for Molson Coors

Higher selling prices and re-opened restaurants and bars contributed to an 11.8% revenue boost, but Molson Coors is seeing weak demand for some of its product lines and faces formidable competition.

We don’t like the firm’s growth prospects and feel it will likely stagnate going forward.

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

 I consent to receiving information from The Successful Investor via email. I understand I can unsubscribe from these updates at any time.

MOLSON… Read More