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

Buy Motorola Solutions Inc. with its attractive P/E

Buy Motorola Solutions Inc. with its attractive P/E

This stock has recently traded close to all-time highs despite disruptions caused by COVID-19. That’s because it supplies vital products to corporate and government clients. 

We also recommend this stock because recent acquisitions continue to brighten the company’s long-term prospects. 

MOTOROLA SOLUTIONS INC. (New York symbol MSI;… Read More

Agilent Technologies Inc. just saw earnings jump 10.1%

Agilent Technologies Inc. just saw earnings jump 10.1%

Sales for this industry leader should continue to rebound over the next few months as its customers resume normal IT equipment purchasing habits.  

COVID-19 has hurt revenues recently but should spur demand for new medical-testing equipment as companies develop treatments and vaccines. 

AGILENT TECHNOLOGIES INC. (New… Read More

Stronger focus set to spur eBay Inc.’s earnings

Stronger focus set to spur eBay Inc.’s earnings

An activist investor has pushed the company to focus its operations through the sale of some non-core operations. 

The transactions should help to cut costs and improve efficiency as the world turns ever faster toward e-commerce. 

EBAY INC. (Nasdaq symbol EBAY; www.ebay.com) operates e-commerce websites where sellers… Read More

Baxter International Inc. should rebound post-COVID-19

Baxter International Inc. should rebound post-COVID-19

COVID-19 fears caused people to postpone all but the most urgent doctor visits. 

However, a multi-year restructuring plan should add to cash flow and support this solid dividend even as vaccines increase elective surgeries.

BAXTER INTERNATIONAL INC. (New York symbol BAX; www.baxter.com) makes a variety of medical… Read More

Three growth investing strategies: Two we like—one we don’t

Three growth investing strategies: Two we like—one we don’t

Growth investing can be beneficial to your portfolio returns—but not every strategy is money in the bank.
To profit from growth stocks, you need to pick stocks with clear growth prospects and not simply momentum stocks with uncertain futures. Chosen wisely, high-quality, growth-oriented stocks can be… Read More