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

McCormick & Co. faces earnings challenges

McCormick & Co. faces earnings challenges

Increased selling prices led to a 3% jump in revenue for this company during the most-recent quarter.

However, lower volumes and iffy demand going forward suggest the company’s growth will be challenged in the near term. The stock trades at a high 32.0 times the company’s… Read More

Earnings just grew 6.6% at Adobe

Earnings just grew 6.6% at Adobe

Technology stocks generally move up and down with the overall economy. Now that a recession seems likely, businesses and consumers are scaling back their spending on new computers and software.

However, we feel now—ahead of the next cyclical upswing—is a good time to add high-quality tech… Read More

Earnings just rose 6.2% at Cintas Corp.

Earnings just rose 6.2% at Cintas Corp.

We first recommended this firm in the October 2005 issue of Wall Street Stock Forecaster as a buy for aggressive investors. We felt the company’s dominance in the niche uniform rentals business gave it reliable revenues and cash flows. Its ability to sell other products… Read More

Revenue jumped 11.9% at FirstService Corp.

Revenue jumped 11.9% at FirstService Corp.

With the April 2020 issue, we promoted this real estate services firm to our Aggressive Growth Portfolio from its original spot as a Power Growth Investor pick. Since then, the stock has risen over 30% as the COVID-19 pandemic prompted homeowners and businesses to upgrade… Read More

Earnings shot up 16.7% at Becton Dickinson & Co.

Earnings shot up 16.7% at Becton Dickinson & Co.

This medical device maker continues to enjoy strong demand for its products as hospitals and clinics resume regular procedures on easing of COVID-19 lockdowns and other restrictions. While ongoing supply-chain problems add risk, we like its long-term prospects.

The company has now completed the spinoff of… Read More

Stantec’s earnings just jumped 33.9%

Stantec’s earnings just jumped 33.9%

Improved sales derived from past acquisitions helped generate a 22.9% revenue gain for this company during the most-recent quarter.

New contract wins should continue to add to the bottom line. Meanwhile, the stock trades at 21.0 times the company’s 2022 earnings forecast.

For a rising portfolio

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Canadian Growth Stocks: CGI Group, CAE Inc., Fortis Inc. Stock and more.


STANTEC INC. (Toronto symbol STN;… Read More

ResMed Inc.’s earnings just rose 10.4%

ResMed Inc.’s earnings just rose 10.4%

This firm continues to prosper in its CPAP machine market but is also expanding quickly in out-of-hospital software solutions. These are aimed at letting healthcare agencies work more efficiently to provide individualized service to patients. This is a big growth area, and the company’s progress… Read More