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

Agilent’s products will help beat COVID-19

COVID-19 should spur demand for Agilent’s medical-testing equipment as companies develop new treatments and vaccines.
In the short term, however, coronavirus shtutdowns have hurt the company’s ability to install new equipment. Still, sales for this industry leader should rebound over the next few months as its… Read More

McCormick vulnerable to next wave

MCCORMICK & CO. INC. $172 remains a hold. The stock (New York symbol MKC; Income Portfolio, Consumer sector; Shares outstanding: 123.6 million; Market cap: $21.3 billion; Price-to-sales ratio: 4.3; Dividend yield: 1.4%; TSINetwork Rating: Average; www.mccormick.com) fell to $112 in March 2020 during the initial COVID-19 lockdowns. However,… Read More

Fight against the virus enhances their appeal

Investors are now turning their attention to stocks that should thrive as the world attempts to prevent a resurgence of COVID-19. Those investments include medical device suppliers Baxter and Becton Dickinson. Both firms are developing COVID-related products. Still, those efforts only add to their already-solid… Read More

New purchase should boost sales

MOTOROLA SOLUTIONS INC. $139 is a buy. The company (New York symbol MSI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 175.7 million; Market cap: $24.4 billion; Price-to-sales ratio: 3.0; Dividend yield: 1.8%; TSINetwork Rating: Average; www.motorolasolutions.com) makes communications equipment such as radios for police and fire… Read More

Transformation pays off for investors

Microsoft has been one of the stock market’s shining stars during the COVID-19 pandemic. That’s mainly due to CEO Satya Nadella’s 2014 plan to expand the company’s cloud-computing operations. The move has helped it profit during the outbreak as more people work from home.
Looking beyond… Read More

Slack Technologies’ partnership will power your gains

Slack Technologies provides firms with an application to help their teams of employees communicate through chat and direct messaging.
Meanwhile, even though the overall market is expanding rapidly, Slack faces significant competition. Its rivals include Microsoft Teams, Cisco Systems’ Webex Teams and Facebook’s Workplace.
That’s why its… Read More

Benefit from TJX’s bargain hunting

THE TJX COMPANIES. $54.54 is a buy. The company (New York symbol TJX; TSINetwork Rating: Above Average) (www.tjx.com; Shares o/s: 1.2 billion; Market cap: $66.5 billion; No divds.) is a leading off-price retailer of clothing, accessories and home fashions. Off-price retailers buy merchandise at below wholesale prices and… Read More

DraftKings is your new Power buy

Shares of DraftKings—the leader in U.S. online sports betting—only recently began trading on Nasdaq. However, this “Power Buy” has already doubled in value. That’s despite the cancellation of most professional sports due to the pandemic.
In fact, its share-price jump—even amid the lockdown—testifies to the strong… Read More

Tim Hortons gains a key backer

RESTAURANT BRANDS INTERNATIONAL INC. $77 is a buy. The company (Toronto symbol QSR; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 463.8 million; Market cap: $35.7 billion; Price-to-sales ratio: 4.2; Dividend yield: 3.7%; TSINetwork Rating: Average; www.rbi.com) has 27,086 fast-food outlets in over 100 countries: 18,838 Burger King, 4,932… Read More

Real estate firms set for post-pandemic gains

Governments have designated real estate service companies like FirstService and Colliers as essential, so they continue to operate normally. We feel their solid brands put them in a strong position to rebound as the pandemic eases.
FIRSTSERVICE CORP. $137 is a buy. The company (Toronto symbol FSV; Aggressive… Read More

Storage tanks cut ShawCor’s risk

SHAWCOR LTD. $3.89 is still a buy, but only for highly aggressive investors. The company (Toronto symbol SCL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 70.2 million; Market cap: $273.1 million; Price-to-sales ratio: 0.2; Dividend suspended in March 2020; TSINetwork Rating: Average; www.shawcor.com) makes sealants and… Read More

They will also profit from the oil rebound

Here are two more high-quality, dividend-paying stocks that should gain from rising oil prices. Higher prices would spur demand for Finning’s heavy equipment by oil producers, while Nutrien should see stronger fertilizer sales as farmers plant more corn for ethanol, a gasoline additive.
FINNING INTERNATIONAL INC… Read More

Sale frees up cash for new projects

EMERA INC. $54 is a buy. The company (Toronto symbol EMA; Income Portfolio, Utilities sector; Shares outstanding: 236.2 million; Market cap: $12.8 billion; Price-to-sales ratio: 2.2; Dividend yield: 4.5%; TSINetwork Rating: Average; www.emera.com) owns 100% of Nova Scotia Power, that province’s main electricity supplier. It also holds interests… Read More

Shutdown lifts Loblaw gains

LOBLAW COMPANIES, $67.96, is a buy. Through their shares in the retailer (Toronto symbol L; Shares outstanding: 362.3 million; Market cap: $24.6 billion; TSINetwork Rating: Above Average; Dividend yield: 1.9%; www.loblaw.ca) investors tap 1,088 food stores and 1,343 Shoppers Drug Mart outlets in Canada.
The COVID-19-related lockdowns have prompted consumers… Read More