Growth Stocks

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:

  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; Consumer; Finance; Utilities);
  3. 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.

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Growth Stocks Post Archives

Despite rising sales, PetMed Express faces challenges

Despite rising sales, PetMed Express faces challenges

Pat McKeough recently responded to a Member of his Inner Circle who wanted his opinion on an online pet-care pharmacy operating in the U.S.  

PetMed Express sells prescription and non-prescription medications for pets through the Internet, telephone and direct mail. Despite steadily rising sales and… Read More

The Best Dividend Stocks Share These 3 Characteristics—and More

The Best Dividend Stocks Share These 3 Characteristics—and More

The best dividend stocks have hidden assets, provide both income and capital gains potential, and have these three financial factors in common
We generally feel that most Successful Investors should hold a total of 10 to 20 mainly well-established, dividend-paying stocks, chosen mainly from our average… Read More

U.S. activist investor has plans for Canada’s Open Text

U.S. activist investor has plans for Canada’s Open Text

A Member of Pat McKeough’s Inner Circle recently asked for his opinion on a Canadian software specialist that has attracted an activist investor from the U.S.

Open Text has a broad international market for its software, but the activist investor aims to raise the company’s… Read More

Unusual acquisition strategy feeds B&G Foods’ growth

Unusual acquisition strategy feeds B&G Foods’ growth

Pat McKeough recently replied to one of his Inner Circle Members who wanted his opinion on a firm that takes an unusual approach to growth in the packaged food business.

B&G Foods manufactures and sells many well-known brands. But it has also furthered its growth… Read More

Fast growth still in store for Dollarama

Fast growth still in store for Dollarama

Recently a Member of Pat McKeough’s Inner Circle asked for his thoughts on one of Canada’s most successful discount retailers.

Few chains have grown as fast as Dollarama or risen as sharply on the stock market. The company plans to have 1,700 stores in Canada… Read More

Recovery gets into gear for Canadian tech stock

Recovery gets into gear for Canadian tech stock

This Canadian stock is beginning to restore its fortunes after falling from a dominant position in its industry.

Changing its focus from smartphones to software, the company is making inroads with new products such as software for self-driving cars. It recently enjoyed better-than-expected quarterly results. The… Read More

Vail Resorts aims to offset weather risk in growing ski resort empire

Vail Resorts aims to offset weather risk in growing ski resort empire

Pat McKeough recently had this answer for a Member of his Inner Circle who asked about one of the world’s most prominent recreational companies.

Colorado-based Vail Resorts has developed a growing portfolio of mountain resort properties including Canada’s largest ski area, Whistler Blackcomb. Success in… Read More