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

Paid subscribers jump for this website-builder Wix.com

Paid subscribers jump for this website-builder Wix.com

A Member of Pat McKeough’s Inner Circle recently asked for his advice on a company that offers both free and paid cloud-based platforms for building websites.

High research and developing spending has now boosted the company’s number of premiums subscribers to 3.8 million worldwide, with… Read More

Acquisition diversifies operations for high-dividend Keyera

Acquisition diversifies operations for high-dividend Keyera

A Member of Pat McKeough’s Inner Circle recently asked for his advice on a company that provides midstream services primarily to the Alberta oil and gas sector.

The company’s primary focus on one region adds risk, says Pat, especially considering the price volatility for Canadian crude… Read More

Aggressive expansion spurs earnings for Jollibee

Aggressive expansion spurs earnings for Jollibee

A Member of Pat McKeough’s Inner Circle recently asked for his advice on a Philippines-based multinational company that operates fast-food restaurants. Now with 4,353 locations worldwide, it continues its push into international markets with large Filipino populations.

That strategy should help to reduce the sizable risk… Read More

The cloud keeps taking this software titan higher

The cloud keeps taking this software titan higher

This household-name software provider recently surpassed Apple as the world’s most valuable company based on market cap. It continues to expand in the fast-growing field of cloud-computing with a lucrative subscription model featuring high renewal rates.

Although the stock has gained over 20% in the past… Read More

Characteristics of Growth Stocks for Successful Investing

Characteristics of Growth Stocks for Successful Investing

Discover 11 key characteristics of growth stocks worth investing in and learn also what to avoid
We generally feel that most investors should hold the bulk of their investment portfolios in securities from well-established companies. This generally means holding a total of 10 to 20 well-established,… Read More

Earnings jump for this Internet of Things leader

Earnings jump for this Internet of Things leader

This IoT (Internet of Things) component maker produces high-profit-margin digital components to connect electricity meters, automobiles, and security systems to the Internet. Its earnings in the latest quarter were up 36.4% and suggest a recent acquisition is already paying off. The company’s high research spending… Read More

Open Text adds new market and risk with acquisition

Open Text adds new market and risk with acquisition

A Member of Pat McKeough’s Inner Circle recently asked for his advice on a company that develops enterprise-information-management software for corporate clients and their corporate intranet and extranet networks.

Open Text’s revenue and earnings are up 22.9% and 26.7% respectively. Pat also points to its strong… Read More

Absolute Software is generating cash and earnings once again

Absolute Software is generating cash and earnings once again

A Member of Pat McKeough’s Inner Circle recently asked for his advice on a company that makes laptops, desktops, tablets and mobile devices (collectively known as “endpoint devices”) safe for more than 12,000 commercial customers.

Absolute Software is a cloud-based provider of technology that lets companies… Read More

Be wary of the difference between growth and momentum stocks

Be wary of the difference between growth and momentum stocks

To profit from growth stocks, you need to pick stocks with clear growth prospects and not simply momentum stocks with uncertain futures
By definition, growth stocks are companies that have above-average growth prospects. They are firms whose earnings growth has been above the market average, and… Read More

Soaring share price makes Dollarama an expensive buy

Soaring share price makes Dollarama an expensive buy

 In response to a direct “buy or not” question from a member of his Inner Circle, Pat McKeough takes a close look at Dollarama as it stands in 2017. A successful growth stock, Dollarama has risen more than 700% since it first began trading publicly. The… Read More