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

Twilio Inc. just grew revenues 65.2%

Twilio Inc. just grew revenues 65.2%

Emphasis on markets outside North America led to a 15.4% jump in subscriber numbers for this company during the most-recent quarter.

A series of acquisitions and investments in venture capital opportunities as well as high R&D spending should also keep it ahead of its competitors.

TWILIO INC… Read More

Earnings just rose 17.9% at Thomson Reuters Corp.

Earnings just rose 17.9% at Thomson Reuters Corp.

This firm’s shares have soared since the company began divesting itself of its financial information business and placing the proceeds into its remaining legal, tax and other specialized information businesses.

Demand for the company’s products is strong as corporations continue to deal with new tax codes… Read More

Bumble Inc. is growing fast

Bumble Inc. is growing fast

A Member of Pat McKeough’s Inner Circle recently asked for his advice on a dating app company that puts women in charge of the online dating process.

Pat likes the rising revenue numbers and fast growth in user numbers as the economy re-opens. However, he notes… Read More

Earnings just rose 23.5% at The TJX Companies

Earnings just rose 23.5% at The TJX Companies

Many traditional bricks-and-mortar retailers will continue to struggle against the COVID-spurred onslaught of online shopping. Some will even go out of business. But this firm’s unique business model offers the possibility of strong gains ahead.

Revenue grew 23.9% in the most recent quarter.

The stock trades at… Read More

Earnings jumped 27.4% at T. Rowe Price

Earnings jumped 27.4% at T. Rowe Price

The Finance sector offers income-seeking investors many options beyond Canadian and U.S. banks. Those include high-quality dividend payers such as this innovative mutual fund operator.

The company has a strong balance sheet and recently paid a special dividend, while its stock trades at 15.7 times its… Read More

Shawcor LTD. is profitable once again

Shawcor LTD. is profitable once again

Rising oil prices and increased demand for the firm’s products led to a 14.9% jump in revenue for the quarter ended June 30, 2021. The company continues to win new contracts and cut its debt load.

The stock trades at 25.5 times the company’s 2022 earnings… Read More

Earnings are up 80% at Texas Roadhouse

Earnings are up 80% at Texas Roadhouse

With the onset of COVID-19, this stock dropped alongside the market. But it’s used smart strategies to rebound. We think the firm is well-positioned to capitalize on its popular food offerings to keep attracting more dine-in, pick-up and takeout customers.

Expansion of its takeout, pick-up and… Read More

Shutterstock’s earnings jumped 70.7%

Shutterstock’s earnings jumped 70.7%

A Member of Pat McKeough’s Inner Circle recently asked for his advice on a company that provides digital content to businesses, marketing agencies, and the media.

Pat likes the firm’s solid track record of revenue and earnings increases. And while recent acquisitions look promising, he notes… Read More