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 6.3% yield from IGM Financial Inc.

Enjoy a 6.3% yield from IGM Financial Inc.

While assets under management have dropped, recent stock market volatility and higher interest rates will probably prompt more individuals to turn to IGM’s professional advisors.

The stock trades at just 9.2 times the company’s 2022 earnings forecast.

IGM FINANCIAL INC. (Toronto symbol IGM; www.igmfinancial.com) is Canada’s largest… Read More

Earnings jumped 16.1% at Canadian Tire Corp.

Earnings jumped 16.1% at Canadian Tire Corp.

Improved in-store sales offset reduced online sales and led to a 15.5% revenue increase for this company during the most-recent quarter.

An ongoing efficiency improvement plan and new sales initiatives should help to boost the bottom line and solid dividend.

The stock trades at just 8.6 times… Read More

Earnings rose 6.3% at Cisco Systems Inc.

Earnings rose 6.3% at Cisco Systems Inc.

Technology stocks have come down from their 2021 highs as it looks increasingly likely that the U.S. Federal Reserve will keep raising interest rates to fight inflation. That could slow the global economic recovery as the COVID-19 pandemic eases.

Even so, we feel a top-quality technology… Read More

Finning Int’l Inc. just grew earnings 73.7%

Finning Int’l Inc. just grew earnings 73.7%

Despite huge disruptions with the onset of the COVID-19 pandemic in March 2020, this firm maintained its dividend. On pandemic easing, the company lifted that payment by 9.8%.

Investors should also benefit from a rising stock price as stronger demand for its equipment and services spurs… Read More

Conagra Brands Inc.’s cheap shares yield 3.5%

Conagra Brands Inc.’s cheap shares yield 3.5%

This firm is facing rising costs for ingredients and shipping and it’s raising its selling prices to protect its margins. Ongoing moves to improve efficiency will also pay off for investors.

Meanwhile the stock trades at 14.1 times the company’s 2022 earnings forecast.

CONAGRA BRANDS INC. (New… Read More

Earnings rise 102.5% at Molson Coors Canada Inc.

Earnings rise 102.5% at Molson Coors Canada Inc.

The firm continues to benefit from its purchase of SABMiller’s stake of MillerCoors as revenues climbed 14.2% in the latest quarter.

However, some COVID-19 challenges remain and beer consumption is slowing, which is forcing the company to cut costs.

Meanwhile, the B class shares trade at 12.9… Read More

AT&T’s spinoff holds great promise and a high yield

AT&T’s spinoff holds great promise and a high yield

This telecom giant is spinning off its media assets to create a tax-free distribution for existing shareholders.

The remaining business still holds great growth potential and should pay a handsome dividend.

Meanwhile the stock trades at just 6.9 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.

AT&T INC. (New York… Read More

Earnings rocketed 53.9% at Intel Corp.

Earnings rocketed 53.9% at Intel Corp.

This firm recently announced a new long-term strategy, which mainly involves expanding its ability to make chips for other companies both at home and abroad.

To help fund the cost of building new chip plants, it will sell a minority stake in its Mobileye business to… Read More

Canadian Tire Corp. is now rewarding investors

Canadian Tire Corp. is now rewarding investors

This company’s shares have dropped a bit lately as investors fear the Omicron variant could lead to more lockdowns. However, the company’s experience should help it cope with future disruptions.

Moreover, many of its customers quickly embraced its online ordering and curbside pickup options. The… Read More

There’s room to grow at Stanley Black & Decker Inc.

There’s room to grow at Stanley Black & Decker Inc.

The company’s revenue and earnings are set to expand following two lawn and garden equipment acquisitions.

The stock trades at 16.4 times the company’s 2021 earnings forecast after an accounting change.

STANLEY BLACK & DECKER INC. (New York symbol SWK; www.stanleyblackanddecker.com) is one of the world’s largest… Read More

Get a 3.7% yield from Campbell Soup

Get a 3.7% yield from Campbell Soup

Higher ingredient and packaging prices led to an 11.1% revenue drop for this company during the fourth quarter.

However, cost cutting continues as the firm plans to raise selling prices on the popularity of its well-known brands.

The stock trades at 14.9 times the company’s 2021 earnings… Read More