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.

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Value Stocks Library Archives

Long-term trends still favour these two

These two stocks are down lately. That’s because they earn most of their income based on the value of the securities they manage for their clients, and the recent stock market volatility will probably hurt those asset values. Even so, both should continue to benefit… Read More

Here are three key updates on your portfolio

KYNDRYL HOLDINGS INC. $34 is a hold. The company (New York symbol KD; Conservative Growth, Manufacturing & Industry sector; Shares outstanding: 230.5 million; Market cap: $7.8 billion; Price-to-sales ratio: 0.6; No dividend paid; TSINetwork Rating: Average; www.kyndryl.com) helps corporate and government clients manage their datacentres. On November 3,… Read More

You’ll benefit from HP’s cost-cutting

HP INC. $29 is a hold. The maker of personal computers and printers (New York symbol HPQ; Conservative Growth Portfolio; Manufacturing sector; Shares outstanding: 942.7 billion; Market cap: $27.3 billion; Price-to-sales ratio: 0.5; Dividend yield: 4.0%; TSINetwork Rating: Average; www.hp.com) reported 2.4% higher revenue for its fiscal 2025… Read More

Niche market dominance gives them an edge

Broadridge and Gen Digital are leaders in their niche markets. That makes it easier to hang onto existing customers and attract new ones. Both are also expanding into new markets, which should spur their overall growth.
BROADRIDGE FINANCIAL SOLUTIONS INC. $238 is a buy. The company (New York… Read More

DNB accepts buyout offer

DUN & BRADSTREET HOLDINGS INC. $8.94 is a hold. The company (New York symbol DNB; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 441.5 million; Market cap: $3.9 billion; Price-to-sales ratio: 1.6; Dividend yield: 2.2%; TSINetwork Rating: Extra Risk; www.dnb.com) is a global provider of information and data analytics.
Dun… Read More

New strategy will benefit investors

CANADIAN TIRE CORP. (class A non-voting) is a buy. The retailer (Toronto symbols CTC [voting] $223 and CTC.A [non-voting] $147; Conservative Growth Portfolio, Consumer sector; Shares o/s: 55.6 million; Market cap: $8.2 billion; Price-to-sales ratio: 0.8; Dividend yield: 4.8%; TSINetwork Rating: Above Average; www.canadiantire.ca) will spend $2 billion… Read More

Molson faces higher costs

MOLSON COORS CANADA INC. is a hold. The brewer (Toronto symbols TPX.A $92 and TPX.B $89; Conservative Growth and Income Portfolios, Consumer sector; Shares outstanding: 215.7 million; Market cap: $19.2 billion; Price-to-sales ratio: 1.1; Dividend yield: 3.0%; TSINetwork Rating: Average; www.molsoncoors.com) makes most of its products in their… Read More

Printer pays special dividend

TRANSCONTINENTAL INC. $18 is a buy for aggressive investors. The company (Toronto symbol TCL.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 83.6 million; Market cap: $1.5 billion; Price-to-sales ratio: 0.5; Dividend yield: 5.0%; TSINetwork Rating: Average; www.tctranscontinental.com) is Canada’s leading printer of newspapers, advertising flyers, in-store displays, magazines… Read More

Use these updates to enhance your returns

MOLSON COORS BEVERAGE CO. $62 is a hold. The beer brewer (New York symbol TAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 206.0 million; Market cap: $12.8 billion; Price-to-sales ratio: 1.1; Dividend yield: 3.0%; TSINetwork Rating: Average; www.molsoncoors.com) has acquired the rights to produce, market and sell Fever-Tree… Read More

Rising profits lift Embecta’s outlook

EMBECTA CORP. $14 is still a buy for long-term gains. The company (Nasdaq symbol EMBC; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 58.1 million; Market cap: $813.4 million; Price-to-sales ratio: 0.7; Dividend yield: 4.3%; TSINetwork Rating: Average; www.embecta.com) makes a variety of medical devices, including stents, catheters, needles… Read More

Spinoff will benefit FedEx investors

FEDEX CORP. $256 is a buy. The package delivery firm (New York symbol FDX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 240.9 million; Market cap: $61.7 billion; Price-to-sales ratio: 0.7; Dividend yield: 2.2%; TSINetwork Rating: Average; www.fedex.com) plans to spin off FedEx Freight as a separate company. This… Read More

Here are key updates on your holdings

TELUS INTERNATIONAL (CDA) INC. $4.94 remains a buy, but only for aggressive investors. The company (Toronto symbol TIXT; Aggressive Growth Portfolio; Manufacturing sector; Shares outstanding: 275.0 million; Market cap: $1.4 billion; Price-to-sales ratio: 0.4; No dividend paid; TSINetwork Rating: Average; www.telusinternational.com) now operates as Telus Digital Experience. It… Read More

These two benefit from a narrower focus

These two financial services providers continue to benefit from their recent plans to better focus on their core businesses. We still like both of these high-quality stocks, but prefer IGM for your new buying.
GREAT-WEST LIFECO INC. $52 is a hold. The insurer (Toronto symbol GWO; Conservative Growth… Read More

Transcontinental has a bright outlook

Transcontinental continues to benefit from its 2018 purchase of a U.S.-based plastic packaging firm. That cut its reliance on its traditional commercial printing operations, particularly as advertisers and publishers shift to online platforms. A new cost-cutting plan should also push its earnings higher in the… Read More

TD sells Schwab stake

TORONTO-DOMINION BANK $86 is a buy. The lender (Toronto symbol TD; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.8 billion; Market cap: $154.8 billion; Price-to-sales ratio: 2.7; Dividend yield: 4.9%; TSINetwork Rating: Above Average; www.td.com) merged its 43%-owned U.S. online brokerage firm TD Ameritrade Holding Corp… Read More

Better products will cut their risk

These top foodmakers continue to adjust their portfolios, including launching new products, as well buying and selling various brands. These moves should spur their long-term earnings growth and cut their risk. Even so, we see only two of the three as buys for you right… Read More

Molson expands in energy drinks

MOLSON COORS CANADA INC. is a hold. The company (Toronto symbols TPX.A $87 and TPX.B $76; Conservative Growth and Income Portfolios, Consumer sector; Shares outstanding: 215.7 million; Market cap: $16.4 billion; Price-to-sales ratio: 1.0; Dividend yield: 3.0%; TSINetwork Rating: Average; www.molsoncoors.com) is the world’s fifth-largest beer brewer.
The company… Read More