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

Square Inc. sees 43.5% revenue growth

Square Inc. sees 43.5% revenue growth

A Member of Pat McKeough’s Inner Circle recently asked for his advice on a company that provides payment processing and related services to merchants in Canada, the U.S., and around the world.

Pat likes the company’s 160.3% revenue growth since 2015 and the $1.1 billion in… Read More

Sales jump 9.6% for Texas Roadhouse

Sales jump 9.6% for Texas Roadhouse

Improved same-store sales led to a 1.4% earnings bump for this company during the most-recent quarter.

A planned expansion will help broaden the chain’s customer base as it adds to sales and helps offset the impact of rising labour costs. 

The stock trades at 16.8 times… Read More

Get a 4.5% yield from Goodyear Tire & Rubber Co.

Get a 4.5% yield from Goodyear Tire & Rubber Co.

A modernization plan is shifting the operations of this global leader to high-margin, premium products.

Although revenue fell 5.4% during the most-recent quarter, that strategy should pay off in the long-term given market fundamentals.

The stock trades at just 9.5 times the company’s 2019 earnings forecast and… Read More

Sysco Corp. sees 15.6% earnings jump

Sysco Corp. sees 15.6% earnings jump

A Member of Pat McKeough’s Inner Circle recently asked for his advice on the world’s largest food distributor to restaurants, schools, health-care facilities and hotels.

Pat notes the company’s product lines and client industries are well-diversified, but he’s wary of its growth through acquisition. That could… Read More

Alphabet Inc. grows earnings 20.3%

Alphabet Inc. grows earnings 20.3%

Stronger demand for online advertising led to a 19.3% revenue jump for this industry giant in the most-recent quarter.

The company is spending heavily in other areas such as cloud computing to further diversify revenue in the face of increased competition.

The stock trades at a reasonable… Read More

Veeva Systems has strong prospects

Veeva Systems has strong prospects

A Member of Pat McKeough’s Inner Circle recently asked for his advice on a company that offers Internet-based customer relationship management (CRM) software for the life sciences industry.

Pat notes that top 20 pharmaceutical firms are among the company’s more than 750 customers and that they… Read More

Kinaxis connects investors with niche market

Kinaxis connects investors with niche market

A Member of Pat McKeough’s Inner Circle recently asked for his advice on a company that provides chain management software to large firms.

Pat notes that the company’s cloud-based model relies on online subscriptions, which generate a steady revenue stream. Also, its customers are for the… Read More