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

Genuine Parts Co. just grew earnings 17.3%

Genuine Parts Co. just grew earnings 17.3%

Like other top industrial stocks, this company’s strong balance sheet should help it cope with economic shocks during the COVID-19 pandemic. That should generate further dividend hikes for investors in 2021 as the pandemic eases.

The company trades at an attractive 17.5 times its projected 2021… Read More

The Good Times will return for Molson

The Good Times will return for Molson

The Good Times will return for Molson

This firm’s short-term prospects are limited due to COVID-19 restrictions.  However, it should survive the economic downturn and prosper as the economy re-opens in the future.

MOLSON COORS CANADA INC. (Toronto symbols TPX.A and TPX.B; www.molsoncoors.com) gives you a stake… Read More

Get a 3.2% yield from Cisco Systems Inc.

Get a 3.2% yield from Cisco Systems Inc.

Businesses have put off IT spending during the pandemic, which led to a 9.3% drop in revenue for this provider during the most-recent quarter. 

While its orders should rebound in the new year, a new security software acquisition is poised to accelerate its turnaround. 

CISCO SYSTEMS INC… Read More

Get a 5.2% from IBM Corp.

Get a 5.2% from IBM Corp.

Businesses have slowed their purchases of new computer equipment due to the COVID-19 pandemic. However, this leader’s recent moves should help expand profits—and dividends—when demand recovers. 

In the meantime, its massive cash flow of over $20 billion a year means it can spend $6 billion (8%… Read More

Get a 6.6% yield from IGM Financial Inc.

Get a 6.6% yield from IGM Financial Inc.

Improving stock markets helped this mutual fund provider boost its assets under management by 7.1% in the most recent quarter.  

The company’s investors are also seeing its 36% stake in a fintech company grow in value. 

IGM FINANCIAL INC. (Toronto symbol IGM; www.igmfinancial.com) lets you tap Canada’s… Read More

Calian’s strategic moves helped boost earnings 12.7%

Calian’s strategic moves helped boost earnings 12.7%

New Canadian government contracts and a satellite tech acquisition led to an 18.8% jump in revenue for this company during the quarter ended June 30, 2020.

Another recent training-firm acquisition has also contributed to its expanding European presence.

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.

CALIAN GROUP LTD. (Toronto symbol CGY; www.calian.com) provides engineering… Read More

Wajax offers a 6.5% yield

Wajax offers a 6.5% yield

COVID-19 difficulties and weak resource markets led to a 12.8% revenue drop for this company during the most-recent quarter.

However, business conditions should improve and a recent acquisition looks like a great fit for the firm.

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.

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

Get a 5.2% yield from IBM

Get a 5.2% yield from IBM

Weaker demand for legacy operations contributed to a 3.4% drop in revenue in the most-recent quarter. 

However, a recent acquisition supports the company’s shift to cloud computing and the sales and earnings growth associated with it. 

IBM (New York symbol IBM; www.ibm.com) gives investors exposure to one… Read More