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

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

55 straight years of rising dividends for Johnson & Johnson

55 straight years of rising dividends for Johnson & Johnson

A Member of Pat McKeough’s Inner Circle recently requested his opinion on one of the best known consumer stocks in North America.

Johnson & Johnson gets almost half of its revenue from its pharmaceutical business. Investors can underestimate the risk of drug stocks, says Pat, due… Read More

U.S. trade talks could check growth for Exco Technologies

U.S. trade talks could check growth for Exco Technologies

Pat McKeough recently replied to a Member of his Inner Circle who asked whether a Canadian stock that specializes in auto parts rates a buy, sell or hold.

Exco Technologies has two business segments, with automakers comprising the bulk of its clients. The company has… Read More

Long-Term Investment Options: Choosing Wisely Limits Worry

Long-Term Investment Options: Choosing Wisely Limits Worry

If you choose long-term investment options that have a history of success, earnings, and dividends, you can avoid worrying about things you can’t control
Many investors spend a lot of time worrying about the wrong things. In particular, they worry about things that are unpredictable. Even… Read More

Genworth MI Canada awaits outcome of Chinese takeover bid

Genworth MI Canada awaits outcome of Chinese takeover bid

Recently a Member of Pat McKeough’s Inner Circle asked his opinion on a Canadian mortgage insurer whose parent company in the U.S. is subject to a takeover bid from China.

Genworth MI Canada is the second large mortgage insurer in this country. Overall, says Pat,… Read More

Tech stock soars on creative cloud package

Tech stock soars on creative cloud package

In the intense competition among tech stocks, this well-known company has enjoyed a strong growth spurt due to its Creative Cloud package.

The company’s strong balance sheet supports high research spending, and a long-term influx of cash from the new U.S. tax reform will fund… Read More

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