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

New orders will add to your 35% gain

CAE INC. $34 is a buy. The company (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 265.0 million; Market cap: $9.0 billion; Price-to-sales ratio: 2.5; Dividend yield: 1.3%; TSINetwork Rating: Average; www.cae.com) has sold two new flight simulators for Boeing’s new 777X jetliner to… Read More

NCR aims to build on your 40% gain

Demand for ATMs has suffered in the past few years as consumers increasingly pay for purchases with credit cards instead of cash. It’s a trend we’ve highlighted for our subscribers several times over the last year as we continue to apprise you of key overall… Read More

Don’t overlook these updates on your stocks

TENNANT CO., $75, is a hold for investors. The company (New York symbol TNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 18.3 million; Market cap: $1.4 billion; P.S. ratio: 1.2; Divd. yield: 1.2%; TSINetwork Rating: Average; www.tennantco.com) gives you exposure to a niche manufacturing segment: the… Read More

Motorola’s dividend masks your risk

MOTOROLA SOLUTIONS INC., $167, is a hold. The company (New York symbol MSI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 171.3 million; Market cap: $28.6 billion; Price-to-sales ratio: 3.7; Dividend yield: 1.5%; TSINetwork Rating: Average; www.motorolasolutions.com) makes communications equipment such as radios for police and fire… Read More

Sony unlocks value for investors

SONY CORP. ADRs, $64, is still a hold. The Japanese conglomerate (New York symbol SNE; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.3 billion; Market cap: $83.2 billion; Price-to-sales ratio: 0.8; Dividend yield: 0.6%; TSINetwork Rating: Average; www.sony.net) plans to sell some of its shares in… Read More

U.S. stocks take you higher

Welcome to your latest issue of Wall Street Stock Forecaster! This month, we feature several well-known U.S. stocks poised to deliver strong, long-term returns for investors.
We start with Walmart , which continues to offer its investors solid gains despite intense competition from traditional retailers as well as online… Read More

Here are key updates on three of your buys: Toromont Industries Ltd., Metro Inc. and Shawcor Ltd.

TOROMONT INDUSTRIES LTD., $70, is a buy. The company (Toronto symbol TIH; Aggressive Growth Portfolio; Manufacturing & Industry sector; Shares outstanding: 81.5 million; Market cap: $5.7 billion; Price-to-sales ratio: 1.6; Dividend yield: 1.5%; TSINetwork Rating: Extra Risk; www.toromont.com) distributes a range of industrial equipment, including Caterpillar machinery, in… Read More

You can expect more gains from Thomson

THOMSON REUTERS CORP. $88 is a buy. The company (Toronto symbol TRI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 501.1 million; Market cap: $44.1 billion; Price-to-sales ratio: 7.6; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.thomsonreuters.com) now aims to drive investor returns with its focus on selling… Read More

Here are key updates on your WSSF picks: Adobe Inc., Sherwin-Williams Co. and McKesson Corp.

ADOBE INC., $261, is still a worthwhile hold for aggressive investors. The company (Nasdaq symbol ADBE; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 484.1 million; Market cap: $126.4 billion; Price-to-sales ratio: 11.9; No dividends paid since June 2005; TSINetwork Rating: Average; www.adobe.com) makes software that lets… Read More

Keysight will let you tap 5G growth

KEYSIGHT TECHNOLOGIES INC., $103, is a buy. The company (New York symbol KEYS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares o/s 188.2 million; Market cap: $19.4 billion; P-to-S ratio: 4.6; No dividend paid; TSINetwork Rating: Average; www.keysight.com) makes devices for testing electronic equipment.
The company is teaming up… Read More