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

Flexible firewall is the secret of this tech stock’s growth

Flexible firewall is the secret of this tech stock’s growth

Pat McKeough recently answered the question of a Member of his Inner Circle who asked about a stock whose specialty is repelling cyberattacks.  

Thanks to a system that lets companies control user access without a blanket ban, Palo Alto Networks has attracted a wide international… Read More

Cloud computing helps this stock do more than pay the cheques

Cloud computing helps this stock do more than pay the cheques

A Member of Pat McKeough’s Inner Circle recently asked for his recommendation on a stock that ensures that millions of Americans go home with money in their pockets.

Well-known for its payroll services, Paychex has added to its human resource services for U.S. businesses over… Read More

23 top tips for successfully investing in TSX growth stocks

23 top tips for successfully investing in TSX growth stocks

Despite the market volatility of early 2018—and their own increased volatility—TSX growth stocks can make excellent long-term investments.

By definition, TSX growth stocks are companies on the Toronto Stock Exchange that have above-average growth prospects. They are firms whose earnings growth has been—or is projected to be—above the… Read More

Even NAFTA may not slow this Canadian growth stock

Even NAFTA may not slow this Canadian growth stock

Pat McKeough recently replied to a Member of his Inner Circle who enquired about a Canadian stock with a distinct niche. It makes more transit buses than anyone else in North America.

New Flyer Industries recently made a major acquisition, while its revenues have grown steadily… Read More

Canada’s new marijuana laws don’t make Canadian Marijuana stocks a ‘buy’

Canada’s new marijuana laws don’t make Canadian Marijuana stocks a ‘buy’

Why decriminalization of marijuana and investment by big Canadian names doesn’t change our opinion of Canadian Marijuana stocks
In the ramp up to this year’s legalization of recreational cannabis use in Canada, readers are increasingly interested in related investment opportunities. The federal government’s new legislation has already spurred marijuana production and caught the investment interest of… Read More

Canadian stock counts on U.S. hospitals for healthy dividend

Canadian stock counts on U.S. hospitals for healthy dividend

A Member of Pat McKeough’s Inner Circle recently asked him about a Canadian stock that occupies a “cross-border” niche in the medical field. The company owns specialty surgical hospitals in the U.S.

Medical Facilities Corp. operated as an income trust until the Canadian government ended… Read More

Canadian pharma stock faces big test in its quest for success

Canadian pharma stock faces big test in its quest for success

Pat McKeough replied to a Member of his Inner Circle who has been keeping a close eye on a Canadian pharmaceutical stock.  The company specializes in treatments for serious diseases that require extra medical therapies and interventions, such as lupus.

Aurinia Pharmaceutical’s most advanced drug,… Read More

This Canadian stock counts on 3-D software and a seasoned CEO

This Canadian stock counts on 3-D software and a seasoned CEO

A Member of Pat McKeough’s Inner Circle recently asked about a stock that claims to be “doing it right.” This Canadian stock is building its future on 3-D office software that it claims can deliver customized office interiors better than the competition.

Pat points out… Read More