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

Ulta Beauty Inc. pivots to a new growth strategy

Ulta Beauty Inc. pivots to a new growth strategy

A Member of Pat McKeough’s Inner Circle recently asked for his advice on a company that operates specialty retail stores selling cosmetics, fragrance, haircare and skincare products. 

Pat likes the company’s strong brand, solid balance sheet, and online sales initiatives. However, he notes that the cosmetics… Read More

Get a 2.1% yield from Andrew Peller

Get a 2.1% yield from Andrew Peller

Wine demand has kept this company’s sales strong, as evidenced by the most-recent dividend raise.

A new acquisition offers further growth prospects.

ANDREW PELLER LTD. (Toronto symbols ADW.A (non-voting) and ADW.B; www.andrewpeller.com) is Canada’s second-largest wine producer, after Arterra Wines.

Wine demand has remained strong during the COVID-19… Read More

Cintas should keep rebounding with the economy

Cintas should keep rebounding with the economy

Improved sales of sanitizer and cleaning products led to a 9.7% earnings jump during the most-recent quarter. 

Not only did this beat estimates, the company’s earnings forecast is also leading estimates as the economy continues to re-open.

We feel this company has a very bright future and… Read More