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.

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Growth Stocks Post Archives

ABB Ltd. looks to resume growth

ABB Ltd. looks to resume growth

Today’s extreme market volatility as a result of COVID-19 has created massive disruptions. However, after markets fall, they always recover. And our goal at The Successful Investor is to ensure that our readers are well-positioned with their investments when that happens. You’ll benefit most from… Read More

Toromont’s 6.5% earnings gain will boost your returns

Toromont’s 6.5% earnings gain will boost your returns

A timely acquisition and improved demand drove a 6.1% jump in revenue for this company during the most-recent quarter.

The stock trades at 15.0 times the company’s 2020 earnings forecast.

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TOROMONT INDUSTRIES LTD. (Toronto symbol TIH; www.toromont.com) distributes a range of industrial equipment, including Caterpillar machinery, in… Read More

Earnings rise 5.1% for Metro Inc.

Earnings rise 5.1% for Metro Inc.

Improved sales led to a 1.3% rise in revenue for this company during the most-recent quarter.

The 2018 acquisition of a drugstore chain continues to diversify its revenue and spur earnings across provinces. The company’s more-recent decision to sell most of its interest in its meal-kit… Read More

Earnings are up 10.3% at Restaurant Brands International Inc.

Earnings are up 10.3% at Restaurant Brands International Inc.

Improved same-store sales led to a 6.8% revenue jump for this company during the most-recent quarter.

A continuing push to develop new menus and increase revenue should further enhance the firm’s international growth prospects.

The stock trades at 17.7 times the company’s 2020 earnings forecast.

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RESTAURANT BRANDS INTERNATIONAL… Read More

Earnings are up 65% at Innergex Renewable Energy Inc.

Earnings are up 65% at Innergex Renewable Energy Inc.

Recent acquisitions led to a 22.6% jump in revenue for this company during the most-recent quarter.

The company looks to keep growing through acquisitions while continuing to develop its own projects.

The stock trades at just 10.4 times the company’s 2020 cash flow forecast.

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INNERGEX RENEWABLE ENERGY INC… Read More

Littelfuse Inc. faces key challenges

Littelfuse Inc. faces key challenges

A Member of Pat McKeough’s Inner Circle recently asked for his advice on a multinational electronics firm with broadly diversified revenue from three major businesses.

Pat likes the company’s sound balance sheet and successful track record at integrating acquisitions. However, he remains cautious of the risks… Read More

New life ahead for Nortonlifelock Inc. following major sale

New life ahead for Nortonlifelock Inc. following major sale

A major sale resulted in a one-time special dividend for investors in this stock. The company continues to sell assets to better focus on its core consumer business.

Your shares trade at a very low 3.6 times its 2020 forecast earnings.

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NORTONLIFELOCK INC. (Nasdaq symbol NLOK; www.nortonlifelock.com)… Read More

Get a 3.6% yield from Molson Coors Canada Inc.

Get a 3.6% yield from Molson Coors Canada Inc.

Lower volumes accounted for a 3.2% drop in revenue for this company during the most-recent quarter.

However, a restructuring plan has already saved $700 million and a new alliance with a marijuana producer is set to boost sales.

Make better stock picks when you read this FREE Special Report, Canadian Growth Stocks: WestJet Stock, RioCan Stock and More.

MOLSON COORS CANADA INC. (Toronto symbols TPX.A and TPX.B),… Read More

Roper Technologies Inc. sees 9.4% earnings growth

Roper Technologies Inc. sees 9.4% earnings growth

A Member of Pat McKeough’s Inner Circle recently asked for his advice on a company that develops software and engineered products for asset tracking, medical and scientific imaging, industrial technology and energy-systems firms.

Pat likes the company’s growing revenue and income streams and notes the stock… Read More

Be wary of the difference between growth and momentum stocks

To profit from growth stocks, you need to pick stocks with clear growth prospects and not simply momentum stocks with uncertain futures
By definition, growth stocks are companies that have above-average growth prospects. They are firms whose earnings growth has been above the market average, and… Read More

Nice Ltd. lifts its earnings 13.6%

Nice Ltd. lifts its earnings 13.6%

A Member of Pat McKeough’s Inner Circle recently asked for his advice on a telephone voice recording, data security and surveillance company based in Israel.

Pat likes its rising revenue and earnings plus the fact the company is spending significantly on research to stay ahead of… Read More