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

Get 3.3% yield from Stanley Black & Decker

Get 3.3% yield from Stanley Black & Decker

Stanley Black & Decker continues to raise its dividends despite facing higher input costs. However, we feel the firm’s new cost-cutting plan puts it in a stronger position to move higher in the next few months.

The stock trades at 19.4 times the company’s 2023 earnings… Read More

Finning is one of our top picks

The improving outlook for cyclical commodity prices is prompting mining firms to order more equipment from Finning. The company is also benefiting as governments spend more on infrastructure projects. Those higher orders will fuel profits—and your dividends.

Recent customer orders include construction equipment intended for a.. Read More

Get 3.6% yield from Conagra Brands

Get 3.6% yield from Conagra Brands

Conagra Brands continues to post strong sales gains, mainly because it’s increasing its selling prices as it copes with higher costs for ingredients, labour and fuel.

Thanks to its strong brands, higher prices have not significantly hurt its volumes. The company is also improving its efficiency… Read More

Get a 6.5% yield from AT&T

Get a 6.5% yield from AT&T

Shares of AT&T have moved mostly sideways since it spun off its media operations in April 2022. However, it continues to improve its wireless and Internet networks, which should spur subscriber growth and support its current dividend rate.

The stock trades at just 7.0 times the… Read More

Earn a 5.2% yield from IGM Financial

Earn a 5.2% yield from IGM Financial

While assets under management have declined with the recent market downturn, a recent acquisition will help lift IGM Financial’s business in China and add to earnings immediately.

We expect stock market volatility and higher interest rates to create more demand for the firm’s professional advisors.

The stock… Read More

Get a 4.0% yield from Canadian Tire Corp.

Get a 4.0% yield from Canadian Tire Corp.

E-commerce helped lead the way to a 3.9% revenue and 6.4% earnings gain for this top pick during the most-recent quarter.

A $3.4 billion long-term growth plan that includes store, online business and private-label brand upgrades should help sustain this momentum and provide a basis for… Read More

Get 3.6% from Stanley Black & Decker Inc.

Get 3.6% from Stanley Black & Decker Inc.

Two recent acquisitions continue to focus the firm on consumer tools and equipment as it divests from commercial security, automatic doors, and oil and gas equipment services.

A cost-cutting program should restore earnings growth in 2024 despite an expected drop in 2023. Meanwhile the stock trades… Read More