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 4.5% yield from Russel Metals

Get 4.5% yield from Russel Metals

This firm hasn’t raised its dividend for several years. That’s mainly because it operates in a cyclical business with unpredictable revenue streams. However, as a leader in its niche industry, its current payments still look secure for income investors.

A new agreement to combine operations with… Read More

Molson Coors may not be your best prospect

Molson Coors may not be your best prospect

Improved sales of beer led to a 17.4% jump in revenue for this company during the most-recent quarter.

However, its outlook remains uncertain due to the threat of the Delta variant of COVID possibly closing bars and restaurants once again.

MOLSON COORS CANADA INC. (Toronto symbols TPX.A… Read More

This spinoff-oriented telecom yields 8.0%

This spinoff-oriented telecom yields 8.0%

Improved demand for phone services led to a 7.6% jump in revenue for this company during the quarter ended June 30.

The recent announcement of a media assets spinoff creates a unique opportunity for shares in the new company and potential new dividends.

The stock trades at… Read More

Earnings rocketed 113.8% at Wajax Corp.

Earnings rocketed 113.8% at Wajax Corp.

Improved business conditions led to a 12.5% jump in revenue for this company during the quarter ended March 31, 2021.

Meanwhile, cost-cutting is helping the company conserve cash as its customers continue to recover from the pandemic.

WAJAX CORP. (Toronto symbol WJX; www.wajax.ca) sells and services cranes,… Read More

Cisco Systems saw earnings per share grow 5.1%

Cisco Systems saw earnings per share grow 5.1%

The COVID-19 pandemic continues to lift revenue for this computer networking giant as businesses use its products to stay connected with employees working remotely.

Demand will likely remain elevated as temporary changes evolve into longer-lasting trends. That should let the firm keep raising its dividend… Read More

Earnings just jumped 87.5% at Genuine Parts Co.

Earnings just jumped 87.5% at Genuine Parts Co.

Improved sales of automotive parts led to a 9.1% revenue rise for this company during the most-recent quarter.

A cost control plan continues to help boost earnings, while the stock trades at 23.0 times the company’s 2021 earnings forecast.

GENUINE PARTS CO. (New York symbol GPC; www.genpt.com)… Read More

Get a 4.6% yield from Russel Metals

Get a 4.6% yield from Russel Metals

A new agreement to combine operations with a rival will help the firm compete in a more challenging energy market.

The firm already has a large client base and it should soon have a more diverse product offering and business platform.

RUSSEL METALS INC. (Toronto symbol RUS;… Read More

Get a 6.4% yield from AT&T

Get a 6.4% yield from AT&T

This firm has paused its annual dividend increase this year in favour of additional debt repayments. We feel that’s prudent since the pandemic has hurt advertising revenue for its media operations.

In the meantime, the current high-yield dividend looks sustainable, and investors will benefit as… Read More

Get a 5.1% yield from IGM Financial

Get a 5.1% yield from IGM Financial

A rising stock market led to an 8.3% jump in revenue for this company during the most-recent quarter.  

Meanwhile, the stock trades at just 11.8 times the company’s 2021 earnings forecast.

IGM FINANCIAL INC. (Toronto symbol IGM; www.igmfinancial.com) is Canada’s largest independent mutual-fund provider. It also offers… Read More