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

Earnings just climbed 16% at Trisura Group

Earnings just climbed 16% at Trisura Group

On June 22, 2017, Brookfield Asset Management Inc. (now Brookfield Corp.) spun off its specialty insurance business as Trisura Group.

Today this specialty insurer is a sterling example of why we love spinoffs and the power they have to outperform their competitors. We first recommended this firm… Read More

Domino’s continues its global expansion

Domino’s continues its global expansion

During the pandemic, Domino’s implemented savvy strategies to support its business. It’s now well-positioned to capitalize on its popular offerings to keep attracting customers.

It continues to add business in rapidly growing international markets while continuously innovating its menu offerings to attract new customers while retaining… Read More

Earnings just rose 13.5% at Gen Digital

Earnings just rose 13.5% at Gen Digital

Gen Digital has shown a steady increase in its user base and accompanying revenue. It continues to innovate with high R&D spending to develop cutting-edge cybersecurity solutions.

A solid yield adds to the firm’s appeal as does the low valuation: the stock trades at just 12.2… Read More

FedEx’s shares are cheap and poised for outperformance

FedEx’s shares are cheap and poised for outperformance

FedEx’s strong financial health and strategic acumen are reinforced by the upward revision of its consensus earnings. Its impressive track record of surpassing earnings expectations further bolsters this sentiment.

Meanwhile, dividend growth and active share buybacks also underscore the management’s belief in the intrinsic value of… Read More