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

Restaurant Brands: Massive Share Buyback Program Signals Strong Confidence In Future Growth

Restaurant Brands: Massive Share Buyback Program Signals Strong Confidence In Future Growth

Restaurant Brands combines defensive positioning and aggressive expansion initiatives. The company’s strong international expansion plans, coupled with its substantial store modernization program and proven track record of operational improvements, position it well for sustained growth in the coming years.

Then the company’s commitment to shareholder returns… Read More

FirstService Delivers Stunning 30.4% Earnings Surge in Latest Quarter

FirstService Delivers Stunning 30.4% Earnings Surge in Latest Quarter

We love FirstService’s exceptional operational execution through its dual-segment business model, combining stable property management services with high-growth branded operations. The company’s recent quarterly performance showcases its ability to drive both organic growth and successfully integrate strategic acquisitions, resulting in a 25% revenue gain.

The company’s… Read More

CGI Inc.: Earnings Should Grow 8% Next Year

CGI Inc.: Earnings Should Grow 8% Next Year

Last quarter’s 4.4% revenue gain beat market expectations as CGI’s “Build and Buy” strategy continues to drive expansion through strategic acquisitions and new contract wins. A substantial backlog, book-to-bill ratio and growing workforce are all healthy signs that current growth is likely to continue for… Read More