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

You benefit from ABB’s tighter focus

ABB LTD. ADRs $30 is a buy. The company (New York symbol ABB; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 2.1 billion; Market cap: $63.0 billion; Price-to-sales ratio: 2.3; Dividend yield: 2.8%; TSINetwork Rating: Above Average; www.abb.com) is a leading manufacturer of transformers, transmission systems and… Read More

Their market dominance cuts your risks

These two tech firms are seeing stronger sales and earnings as their clients rebound from COVID-19. Their dominant positions in niche markets also cut your risk.
AGILENT TECHNOLOGIES INC. $125 is a buy. The company (New York symbol A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding:… Read More

Pandemic lifts Archer’s revenue

ARCHER DANIELS MIDLAND CO. $58 is a buy. The company (New York symbol ADM; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 555.5 million; Market cap: $32.2 billion; Price-to-sales ratio: 0.5; Dividend yield: 2.6%; TSINetwork Rating: Above Average; www.adm.com) processes corn, wheat, soybeans, flax seed, peanuts and… Read More

Pure-play Raytheon is set to take off

United Technologies (now Raytheon Technologies following its merger with Raytheon Co.) was our top Conservative pick for 2020. We liked that the merger, along with the spinoffs of Otis and Carrier, created a pure-play aerospace leader. Those moves also cut the old company’s exposure to… Read More

Calian widens its client offerings

CALIAN GROUP, $58.00, is a buy. The Ottawa-based company (Toronto symbol CGY; TSINetwork Rating: Extra Risk) (www.calian.com; Shares o/s: 9.8 million; Market cap: $588.8 million; Dividend yield: 1.9%) is now buying InterTronic Solutions Inc. for $22 million. InterTronic is Canada’s leading producer of high-performance antenna systems.
Combining InterTronic’s antenna systems… Read More

WELL doubles revenue with this buy

WELL HEALTH TECHNOLOGIES $8.47 is a buy. The company (Toronto symbol WELL; TSINetwork Rating: Speculative) (www.well.company; Shares outstanding: 163.0 million; Market cap: $1.4 billion; No dividends paid) is now acquiring CRH Medical Corporation (symbol CRH on Toronto) for $369.2 million U.S.
That Canada-based company is focused on providing gastroenterologists… Read More

Tap Boston Scientific’s bright future

There’s little doubt that the developing world’s aging population will help drive up global spending on medical services in the years to come. Medical device makers, however, are also well positioned to capture a share of that increased spending.
We continue to see attractive investment opportunities… Read More

Sale set to fuel your Thomson gains

THOMSON REUTERS CORP. $105 remains a buy. The company (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares o/s: 497.1 million; Market cap: $52.2 billion; Price-to-sales ratio: 8.7; Dividend yield: 1.8%; TSINetwork Rating: Above Average; www.thomsonreuters.com) sold 55% of its Financial & Risk business (now called Refinitiv) to… Read More

Low rates help and hurt this lender

HOME CAPITAL GROUP INC. $31 remains a hold for aggressive investors. The stock (Toronto symbol HCG; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 53.0 million; Market cap: $1.6 billion; Price-to-sales ratio: 3.4; Dividend suspended in May 2017; TSINetwork Rating: Speculative; www.homecapital.com) lets you tap a mortgage lender serving… Read More

Brookfield adds key assets

BROOKFIELD RENEWABLE PARTNERS L.P. $57.90, is a buy. The partnership (Toronto symbol BEP.UN; Units outstanding: 309.1 million; Market cap: $26.3 billion; TSINetwork Rating: Extra Risk; Dividend yield: 2.6%; www.brookfieldrenewable.com) has agreed to buy a portfolio of solar assets from U.S. energy giant Exelon Corp (Nasdaq symbol EXC).
The additional 360… Read More

Ford hit by special charges

FORD MOTOR CO. $11 is still a hold. The stock (New York symbol F; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 3.9 billion; Market cap: $42.9 billion; Price-to-sales ratio: 0.3; Dividend suspended in March 2020; TSINetwork Rating: Extra Risk; www.ford.com) has jumped 30% since the start… Read More