Growth stocks are companies that are likely to have sales and earnings growth well above market average. Frequently they pay few, if any, dividends. Instead they typically reinvest any extra cash flow to promote further growth. Chosen wisely—according to Pat McKeough’s advice—high-quality growth-oriented stocks can be worthwhile additions to most well-diversified portfolios.
Although growth stock picks can be highly volatile, they can make good long-term investments. They may be well-known stars or quiet gems, but they do share one common attribute—they are growing at a higher-than-average rate within their industry, or within the market as a whole, and could keep growing for years or decades.
And keep in mind that we focus on growth stocks, which have a good long-term history and favourable prospects. We downplay momentum stocks that tend to attract many investors simply because they are moving faster than the market averages, but are liable to fall sharply when their momentum fades.
There’s room for growth stock investing in your portfolio, but make sure you follow our TSI Network three-part Successful Investor strategy for your overall portfolio:
Invest mainly in well-established companies;
Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
Downplay or avoid stocks in the broker/media limelight.
Make better stock picks when you read this FREE Special Report, Canadian Growth Stocks: WestJet Stock, RioCan Stock and More.
Long-time readers know that we aim to keep you informed of important news about the stocks we cover. That means highlighting developments and plans that promise to bolster investor gains. Here are two buys that stand out this month:
REGENERON PHARMACEUTICALS, $901.19, is a buy. The company… Read More
CALIAN GROUP, $55.49, is a buy. The company (Toronto symbol CGY; TSINetwork Rating: Extra Risk) (calian.com; Shares o/s: 11.8 million; Market cap: $656.7 million; Dividend yield: 2.0%) has completed a transaction with MDA Ltd (symbol MDA on Toronto) to purchase assets associated with MDA’s nuclear services.
Calian Nuclear has… Read More
PagerDuty and Twilio were well positioned to gain during the pandemic, but since early 2021 they have dropped along with many other tech/platform stocks. Still, we think both have room to rebound as their services continue to experience strong, and growing, demand. Both are buys.
PAGERDUTY… Read More
You should remain wary of stocks that attract broker/media attention because of high-profile products or services and their business models. Here’s a closer look at one stock with risks that prospective investors should take into consideration:
CANADIAN SOLAR INC., $15.12, (Nasdaq symbol CSIQ; TSI Rating: Extra Risk) (Shares… Read More
CHIPOTLE MEXICAN GRILL, $2,902.96, is a buy. The company (New York symbol CMG; TSINetwork Rating: Extra Risk) (Shares outstanding: 27.6 million; Market cap: $80.2 billion; No divid.) now plans to split its stock on a 50-for-one basis. This is the first stock split in Chipotle’s 30-year history. Chipotle’s shares are… Read More
ATS Corp., based in Cambridge, Ontario, is a new pick for subscribers to Power Growth Investor. The company is at the forefront of the rapidly expanding market for factory automation technology. Part of that is its big move into EV battery assembly systems, as well… Read More
EXPEDIA GROUP INC., $128.73, is a buy. The company (Nasdaq symbol EXPE; TSINetwork Rating: Average) (www.expediagroup.com; Shares outstanding: 142.6 million; Market cap: $17.5 billion; No dividends paid) operates the world’s largest travel booking platform. Its brands include Expedia, Orbitz, Travelocity, Vrbo and Hotels.com.
Expedia has announced several partnerships to… Read More
FIRSTSERVICE CORP. $212 (www.firstservice.com) is a buy. The company provides property management services to businesses and individuals. FirstService tends to fuel its growth with acquisitions of smaller businesses that expand its market share. In 2023, it spent $574.2 million U.S. buying smaller firms. Those new businesses will help… Read More
MAPLE LEAF FOODS INC. $24 is a hold. The company (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 122.7 million; Market cap: $2.9 billion; Price-to-sales ratio: 0.6; Dividend yield: 3.7%; TSINetwork Rating: Average; www.mapleleaffoods.com) sells fresh and prepared meats under the Maple Leaf and Schneider labels.
Maple… Read More
Engineering firm Stantec is now up roughly 200% since we promoted the company to our Successful Investor Aggressive Growth Portfolio (in the April 2020 issue) from our Power Growth Investor newsletter. That’s mainly because higher government spending on new infrastructure projects is spurring demand for… Read More
PROCTER & GAMBLE CO. $162 (www.pg.com) is a buy. The consumer product giant Procter expects its sales in the fiscal year ending June 30, 2024, will rise between 4% and 5%. As well, thanks to improving productivity and easing costs for raw materials, earnings for the year should… Read More
Becton Dickinson’s shares hit an all-time high of $280 in July 2023, but have moved down 15% on weaker demand for its COVID-19 testing kits. However, the company should benefit from stronger demand for its syringes due to increasing use of injectable weight-loss drugs like… Read More
CANON INC. ADRs $30 remains a hold. The Japanese conglomerate (Over-the-counter Pink Sheets market symbol CAJPY; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.1 billion; Market cap: $33.0 billion; Price-to-sales ratio: 1.1; Dividend yield: 3.1%; TSINetwork Rating: Above Average; www.canon.com) recently developed a new way to… Read More
On November 3, 2021, IBM spun off its legacy business focused on helping corporate and government clients manage their datacentres. Investors received one Kyndryl share for every five IBM shares they held.
We still prefer IBM for your new buying, due to its ability to tap… Read More
On October 16, 2023, the old NCR Corp. (New York symbol NCR) completed its plan to split itself into two separate firms. One (called NCR Atleos) focuses on ATMs, and the other (called NCR Voyix) focuses on digital commerce businesses.
Investors received one share of NCR… Read More
The coronavirus pandemic forced the cancellation of most vacation plans. However, the reopening of the economy has spurred strong demand for travel, and both Wyndham, and Travel + Leisure should benefit from that surge. We see each as a buy.
WYNDHAM HOTELS & RESORTS, $78.26, is… Read More
We like Warner Music’s competitive prospects in its niche market—and a big French acquisition would just add to its attractive outlook.
WARNER MUSIC GROUP, $33.20, is a buy. The company (Nasdaq symbol WMG; TSINetwork Rating: Average) (www.wmg.com; Shares outstanding: 515.7 million; Market cap: $17.6 billion; Dividend yield: 2.1%) recently… Read More
Long-time readers know that we aim to keep you informed of important news about the stocks we cover. That means highlighting developments and plans that promise to bolster investor gains. Here are two buys that stand out this month:
ACI WORLDWIDE, $31.73, is a buy. The firm… Read More
CHIPOTLE MEXICAN GRILL, $2,722.69, is a buy. The company (New York symbol CMG; TSINetwork Rating: Extra Risk) (Shares outstanding: 27.4 million; Market cap: $74.6 billion; No divid.) is now rolling out new benefits aimed to appeal to its Gen-Z labour pool, which accounts for more than 73% of its… Read More
During the pandemic, both Domino’s Pizza and Texas Roadhouse implemented savvy strategies to support their businesses. Now, going forward, we think each is well-positioned to capitalize on its popular offerings to keep attracting customers. Each stock also remains a buy.
DOMINO’S PIZZA, $450.97 (New York symbol DPZ;… Read More
