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 are up 9.9% for CGI Inc.

Earnings are up 9.9% for CGI Inc.

Improved client spending on new computer systems led to a 3.5% jump in revenue for this firm. 

A rebounding economy, an aggressive share buyback program, and a growing contract backlog suggest the share price for this #1 Aggressive buy for 2021 will continue to rise. 

CGI… Read More

Earnings exploded 168.8% at Deere & Co.

Earnings exploded 168.8% at Deere & Co.

Improved equipment sales led to a 30.3% jump in revenue for this company, while a recent “Smart Farming” acquisition should open new markets for the long term even though short-term opportunities are limited.

The stock trades at 15.0 times the company’s 2021 earnings forecast.

DEERE & COMPANY… Read More

Fedex’s earnings just soared 105.1%

Fedex’s earnings just soared 105.1%

Improved efficiency and online shopping led to a 30% jump in revenue for this company during the most-recent quarter. 

A rebounding economy should continue to help drive higher numbers while the stock trades at only 11.0 times the company’s 2021 earnings forecast.

FEDEX CORP. (New York symbol… Read More

Earnings soared 40.7% for FirstService

Earnings soared 40.7% for FirstService

The firm has rebounded strongly from last year’s low as businesses and individuals re-purpose their properties in response to the pandemic.  

The shares might look expensive in relation to earnings, but the company is in a strong position to keep winning new contracts. Moreover, as… Read More

Earnings rose 64.5% at Toromont Industries

Earnings rose 64.5% at Toromont Industries

This company’s shares hit a new all-time high of $111 in May 2021 as the spread of COVID-19 slowed and construction and mining firms began to accelerate their projects. The stock will likely keep moving higher as governments in Ontario and Quebec undertake new infrastructure… Read More

Earnings just quadrupled at Warmer Music Group

Earnings just quadrupled at Warmer Music Group

The company’s recent IPO success despite COVID-19 volatility illustrates the music industry’s growing strength.

The firm continues to benefit from strong demand from music-streaming services such as Spotify and Apple Music.

A full 73% of its sales now come from digital music as sales rose 32.7%… Read More

Linamar has turned pandemic loss into profit

Linamar has turned pandemic loss into profit

Improved automotive parts sales led to a 70.6% jump in revenue for this company during the most-recent quarter. 

A cost-cutting plan also helped the firm rebound and better positioned it for the industry shift to electric vehicles.

The stock trades at just 9.3 times the company’s 2021… Read More

Twilio keeps adding to your 91% gain

Twilio keeps adding to your 91% gain

This firm has put on a stellar performance for our readers thanks to its 91.2% rise since its inaugural June 2020 recommendation in Power Growth Investor.

The company has benefited from increased demand during the pandemic, but its business model and leading-edge technology set it up… Read More