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

Fintech Stock Picks: What Investors Need to Know Before Buying

Fintech Stock Picks: What Investors Need to Know Before Buying

A fintech stock typically offers financial services, or services to the financial industry, with a focus on using technology to gain efficiencies. Here’s how to spot the best ones.
A financial technology or “fintech” stock typically offers financial services, or services to the financial industry, with… Read More

Middle East contracts boost outlook for innovative Covalon Technologies

Middle East contracts boost outlook for innovative Covalon Technologies

Recently Pat McKeough responded to a Member of his Inner Circle who wanted his advice on a healthcare company that specializes in wound treatment.

Covalon Technologies generates its revenue through development and distribution contracts, licensing agreements and product sales for advance-care wound treatment and infection-prevention products… Read More

Canadian acquisition paying off for Lawson Products

Canadian acquisition paying off for Lawson Products

A Member of Pat McKeough’s Inner Circle recently asked for his advice on a U.S. company that has benefited from a Canadian acquisition.

Lawson Products is an industrial maintenance and repair products distributor with a variety of industrial, commercial, institutional and government clients. A year ago,… 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

Why a Market Timing Strategy Leads to Poor investment Returns

Why a Market Timing Strategy Leads to Poor investment Returns

Forget relying on a market timing strategy to boost returns. Focus instead on these proven tips for successful investing.
Rising stock markets often spurs renewed interest in market timing—the practice of trying to predict future trends and turning points in stock prices. For most people, this… Read More

Western Union moves into the digital age

Western Union moves into the digital age

A Member of Pat McKeough’s Inner Circle recently asked for his advice on a long-established stock that is going through the latest of many changes. 

Western Union first began building a transcontinental telegraph network in the 1850s. Today it specializes in money transfers, but that business… Read More

Rise in surgical robots will drive growth for Mazor Robotics

Rise in surgical robots will drive growth for Mazor Robotics

A Member of Pat McKeough’s Inner Circle recently requested his advice on an Israeli company in a rapidly-growing area of medicine.

Mazor Robotics develops systems for computer-assisted surgery, specifically spinal and brain surgeries. The company has produced two robotic systems; it receives 57% of its… Read More