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

Acquisitions always on the menu for Recipe Unlimited

Acquisitions always on the menu for Recipe Unlimited

Recently a Member of Pat McKeough’s Inner Circle asked his advice on a company that owns most of Canada’s best-known restaurant chains.

Recipe Unlimited is the new name of Cara Operations. Not long ago, it added The Keg to its group of restaurant chains that includes… Read More

Online mail delivers big returns for Stamps.com

Online mail delivers big returns for Stamps.com

A Member of Pat McKeough’s Inner Circle recently asked for his views on a stock that specializes in online mail delivery.  

A variety of clients, from individuals to large enterprises, use the company’s Internet-based services for mailing and shipping. Stamps.com has seen its revenue soar… Read More

Soaring share price makes Dollarama an expensive buy

Soaring share price makes Dollarama an expensive buy

 In response to a direct “buy or not” question from a member of his Inner Circle, Pat McKeough takes a close look at Dollarama as it stands in 2017. A successful growth stock, Dollarama has risen more than 700% since it first began trading publicly. The… Read More

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