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

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

Earnings up 6% for Dollarama despite increased competition

Earnings up 6% for Dollarama despite increased competition

A Member of Pat McKeough’s Inner Circle recently asked for his advice on Canada’s leading dollar-store operator with 1,225 locations across the country and plans to grow to 1,700 stores by 2027.

Pat likes the company’s rising revenue and earnings and also its low debt. However,… Read More