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 Library Archives

FICO adapts for today’s borrowers

FAIR ISAAC CORP. $431.25 (New York symbol FICO; TSINetwork Rating: Average) (www.fairisaac.com; Shares outstanding: 29.0 million; Market cap: $12.6 billion; No dividends paid) in response to rising unemployment due to COVID-19, recently launched the FICO Resilience Index. It’s similar to its FICO Scores, which lenders use to make… Read More

This Power Buy gains a sports legend as an investor

DraftKings keeps hitting new highs even amid continuued COVID-19 sports lockdowns. That testifies to the strong demand for sports wagering. It has also attracted the interest of prominent athletes. DraftKings is a Power Buy for our Power Growth Investors.
DRAFTKINGS INC., $51.03, is a Power Buy. The company (Nasdaq symbol DKNG; TSINetwork Rating:… Read More

Your tasty 5,336% gain is just the beginning

Food delivery is one of the most dynamic businesses around these days, especially as the industry deals with COVID-19. But Domino’s Pizza—a favourite of ours—has long been a leader in getting its pizzas to happy customers. That’s given our subscribers an astounding 5,336.3% gain since… Read More

ADT links up with Google for growth

ADT keeps signing and retaining security customers. And one reason for its expanding market share are additions to its range of services. They include Wi-Fi-enabled security cameras and automated home solutions. Now, with ADT’s new smart-home partnership with Google-parent Alphabet, its prospects look even brighter.
ADT… Read More

An aggressive stock up 33% despite COVID

For the April 2020 issue, we welcomed FirstService to our Successful Investor Aggressive Growth Portfolio from its original spot as a Power Growth Investor pick. Since then, the stock has jumped 33% as the company takes advantage of the COVID-19 pandemic to make attractive acquisitions. Those new assets set… Read More

Defence clients bolster CAE

CAE INC. $20 is still a buy for patient investors. The company (Toronto symbol CAE; Conservative Growth Payer Portfolio, Manufacturing & Industry sector; Shares o/s: 265.8 million; Market cap: $5.3 billion; Price-to-sales ratio: 1.6; Divd. suspended in March 2020; TSINetwork Rating: Average; www.cae.com) delivered just two flight simulators… Read More

These fallen stars are still worth holding

These two former stock market darlings from the 1990s continue to shrink their operations as they focus on their more-promising businesses. That puts them in a better position to survive COVID-19 disruptions. Still, investors will need to be patient: their short-term prospects remain weak.
BLACKBERRY LTD… Read More

Home meals boost Metro

METRO INC., $59.83, is a buy. The stock (Toronto symbol MRU; Shares o/s: 251.8 million; Market cap: $14.8 billion; TSINetwork Rating: Average; Yield: 1.5%; www.metro.ca) lets you tap 950 grocery stores and 650 drugstores, in Quebec, Ontario and New Brunswick.
Metro continues to benefit as consumers eat more meals at… Read More

Innergex adds wind plants

INNERGEX RENEWABLE ENERGY $22.81, is a buy. The power generator (Toronto symbol INE; Shares o/s: 174.4 million; Market cap: $3.9 billion; TSINetwork Rating: Extra Risk; Dividend yield: 3.2%; www.innergex.com) operates 37 hydroelectric plants, 32 wind farms and six solar power fields. They’re spread across Quebec, Ontario, B.C., Idaho, France… Read More

Texas Instruments looks beyond COVID-19

Despite COVID-19, Texas Instruments worked to maintain its production rate for computer chips. While demand fell sharply with the pandemic, the company’s decision—and its investments—means it should immediately benefit once demand returns.
TEXAS INSTRUMENTS INC. $142 is a buy. The stock (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing… Read More

Broadridge lifts your dividend

BROADRIDGE FINANCIAL SOLUTIONS INC. $139 is a buy. The company (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares o/s: 115.2 million; Market cap: $16.0 billion; Price-to-sales ratio: 3.5; Div. yield: 1.7%; TSINetwork Rating: Average; www.broadridge.com) serves the investment industry in three main areas: investor communications, securities… Read More

Their essential services fuel your gains

FedEx and Cintas have soared in the past few months, even though the shutdown of businesses due to COVID-19 hurt their short-term earnings. That’s because demand for their services will rebound as the economy reopens, particularly as they help businesses cope with the pandemic.
FEDEX CORP… Read More

They are still buys years after their split

Conagra’s shares are up 13% this year. It continues to benefit as households stock up on food basics due to COVID-19. However, potato-processor Lamb Weston— Conagra spun it off in 2016—is down 27%. Still, that stock should rebound as more restaurants re-open following their pandemic… Read More

Stock split masks Apple’s risk

APPLE INC. $506 is a hold. The company (Nasdaq symbol AAPL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.3 billion; Market cap: $2.2 trillion; Price-to-sales ratio: 7.9; Dividend yield: 0.7%; TSINetwork Rating: Average; www.apple.com) gets 50% of its revenue from iPhone sales. The remaining 50% comes… Read More

You keep prospering with Broadridge

BROADRIDGE FINANCIAL SOLUTIONS $137.30 (New York symbol BR; TSINetwork Rating: Average) (www.broadridge.com; Shares o/s: 115.2 million; Market cap: $15.8 billion; Dividend yield: 1.7%) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing.
Broadridge is now trading at all-time highs after reporting stronger results… Read More

Adobe teams up with IBM

ADOBE INC., $462.01, is a buy. The company (Nasdaq symbol ADBE; TSINetwork Rating: Average) (www.adobe.com; Shares o/s: 479.7 million; Market cap: $221.6 billion; No dividends paid) is now partnering with IBM with the aim of making easy-to-use marketing software for banks that face strict controls on how customer data… Read More