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


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

Read More

Value Stocks Post Archives

Earnings rocketed 59% at Finning Int’l Inc.

Earnings rocketed 59% at Finning Int’l Inc.

This firm recently announced that its CEO will step down to head up the Bank of Nova Scotia. The company has appointed Kevin Parkes as his replacement.

Mr. Parkes will likely continue the company’s current strategy of expanding its product support (equipment maintenance) business. The company’s… Read More

Earnings just rose 14% at Conagra Brands

Earnings just rose 14% at Conagra Brands

This leading foodmaker 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… Read More

Get Leon’s Furniture shares that yield 3.7%

Get Leon’s Furniture shares that yield 3.7%

COVID-19 lockdowns prompted many Canadians to upgrade their homes with furniture purchased though this firm’s online channels. Now that its stores have fully re-opened, the company is building a new distribution facility in Edmonton to support the growth of the business—and your dividend too.

Meanwhile, the… Read More

Get a 5.9% yield from AT&T

Get a 5.9% yield from AT&T

This firm’s share price is unchanged since the start of 2022, mainly because rising interest rates have prompted income-seeking investors to buy bonds instead. Higher rates are also making it more expensive for the firm to build out its new ultrafast 5G wireless networks.

However, we… Read More

IGM Financial Inc. yields 6.1%

IGM Financial Inc. yields 6.1%

As a seller of mutual funds and wealth management services, this firm’s fee income rises and falls with the value of the securities it manages.

Due to the drop in stock values, the shares are down 19% since the start of 2022. However, the current… Read More

Get a 4.3% yield from Canadian Tire Corp.

Get a 4.3% yield from Canadian Tire Corp.

Improved sales of automotive parts and services as well as household and sporting goods led to a 12.4% revenue jump for this company during the most-recent quarter.

Higher loan-loss provisions and operating costs hurt earnings but the company plans to close unprofitable stores and cut expenses.

The… Read More

Get a 3.9% yield from Stanley Black & Decker Inc.

Get a 3.9% yield from Stanley Black & Decker Inc.

While supply-chain disruptions and rising costs for labour and shipping add risk, this firm continues to reward investors with higher dividends and share buybacks.

Recent acquisitions and divestments have focused the firm on its consumer tool business.

Meanwhile the stock trades at 14.9 times the company’s 2022… Read More

Get a cheap 3.7% yield from Cisco Systems Inc.

Get a cheap 3.7% yield from Cisco Systems Inc.

In the past few years, securely connecting to the Internet has become crucial as more businesses sell goods and transfer sensitive information online. Part of that is more non-computer devices—like cars and household appliances—are also connecting to the “Internet of Things.”

As the market leader in… Read More

Finning Int’l Inc. yields 3.9%

Finning Int’l Inc. yields 3.9%

Sales improved 17.5% and generated a huge 42.9% earnings rise as demand for equipment and maintenance services continued to build.

Earnings should show strong growth across all of 2022, which further enhances the appeal of an 8.4 p/e.

FINNING INTERNATIONAL INC. (Toronto symbol FTT; www.finning.com) sells and… Read More

Earnings just rose 37.7% and beat analyst expectations

Earnings just rose 37.7% and beat analyst expectations

Rising snack-foods sales also led to a 7.4% jump in revenue for this company during the most-recent quarter.

A recent $6.1 billion acquisition has accelerated the company’s focus on its core areas.

Meanwhile the stock trades at 17.0 times the company’s 2022 earnings forecast.

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.

CAMPBELL SOUP CO. (New… Read More

Get a 3.9% yield from Conagra Brands Inc.

Get a 3.9% yield from Conagra Brands Inc.

This firm spun off its potato-processing business Lamb Weston in November 2016; investors received one Lamb Weston share for every three shares of the original firm they held.

Both stocks took a step back as a result of COVID-19 lockdowns, but they are now close… Read More

Get a 3.7% yield at Leon’s Furniture Ltd.

Get a 3.7% yield at Leon’s Furniture Ltd.

We recommend investors limit their aggressive holdings to no more than a third of their overall portfolio. To further cut your risk, you should focus on high-quality aggressive stocks such as this one.

Some dividend investors avoid small-cap stocks as they feel their dividends are not… Read More

Get a 6.1% yield from AT&T

Get a 6.1% yield from AT&T

This firm recently spun off its media operations as it continues to shift its focus to its main telecom businesses.

The plan should benefit both companies since investors tend to prefer pure-play firms. Indeed, we like both firms. Still, the telecom firm is the better… Read More