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

These leisure stocks are both buys

Studies show that both a spinoff and its parent company perform better than comparable firms for several years following their split. That’s especially so with industry leaders like these two.
WYNDHAM DESTINATIONS $43.13 (New York symbol WYND; TSI Rating: Extra Risk) (973-753-6000; www.wyndhamdestinations.com; Shares outstanding: 94.5 million; Market… Read More

Tims adds rewards

RESTAURANT BRANDS INTERNATIONAL $66.36 (New York symbol QSR; TSINetwork Rating: Average) (905-845-6511; www.rbi.com; Shares o/s: 478.0 million; Market cap: $31.7 billion; Dividend yield: 3.0%) has 17,796 Burger King, 4,846 Tim Hortons (coffee and donuts) and 3,102 Popeyes Louisiana Kitchen (crispy fried chicken) outlets in over 100 countries.

The company continues… Read More

Buy Broadridge, hold on to Adobe

BROADRIDGE FINANCIAL SOLUTIONS $113.25 (New York symbol BR; TSINetwork Rating: Average) (201-714-3000; www.broadridge.com; Shares o/s: 115.7 million; Market cap: $13.0 billion; Dividend yield: 1.7%) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing.
In its fiscal 2019 second quarter, ended December 31, 2018,… Read More

New service helps Metro compete

METRO INC. $50 (Toronto symbol MRU; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 227.4 million; Market cap: $11.4 billion; Price-to-sales ratio: 0.8; Dividend yield: 1.6%; TSINetwork Rating: Average; www.metro.ca) operates 600 grocery stores and 650 drugstores, in Quebec, Ontario and New Brunswick.
Metro recently launched home delivery in… Read More

Strategic acquisitions add to their appeal

FINNING INTERNATIONAL INC. $24 (Toronto symbol FTT; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 163.5 million; Market cap: $3.9 billion; Price-to-sales ratio: 0.6; Dividend yield: 3.3%; TSINetwork Rating: Above Average; www.finning.com) sells and services Caterpillar-brand heavy equipment in Western Canada, South America and the U.K.
Finning… Read More

Big U.S. consumer stocks: 1 buy & 1 hold

PROCTER & GAMBLE CO. $103 (New York symbol PG; Income-Growth Portfolio, Consumer sector; Shares outstanding: 2.5 billion; Market cap: $257.5 billion; Dividend yield: 2.8%; Dividend Sustainability Rating: Highest; www.pg.com) is one of the world’s largest makers of household and personal-care goods.
Starting with the May 2018… Read More

Higher employment fuels Cintas’s growth

CINTAS CORP. $199 (Nasdaq symbol CTAS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 104.5 million; Market cap: $20.8 billion; Price-to-sales ratio: 3.1; Dividend yield: 1.0%; TSINetwork Rating: Average; www.cintas.com) designs, manufactures and rents uniforms to over 1 million businesses, mainly in North America… Read More

Relying on acquisitions adds risk

MOTOROLA SOLUTIONS INC. $139 (New York symbol MSI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 163.9 million; Market cap: $22.8 billion; Price-to-sales ratio: 3.1; Dividend yield: 1.6%; TSINetwork Rating: Average; www.motorolasolutions.com) makes communications equipment such as radios for police and fire vehicles.
The company… Read More

New products, services keep them on top

These three tech giants continue to adapt to rapid changes in their markets. For example, innovations such as cloud computing (where users access computer software online) have made it easier for software makers Microsoft and Adobe to sell their products as an ongoing subscription service… Read More

Shutdown delays merger deal

QUAKER CHEMICAL CORP. $201 (New York symbol KWR; Income Portfolio, Manufacturing & Industry sector; Shares o/s: 13.3 million; Market cap: $2.7 billion; Price-to-sales ratio: 3.1; Dividend yield: 0.7%; TSINetwork Rating: Average; www.quakerchem.com) agreed to acquire rival Houghton International Inc. in 2017. Based in Philadelphia, the… Read More

Here’s 4 top picks for fintech growth

A financial technology, or “fintech,” stock typically offers one, or several, financial services that rely on technology to gain efficiencies. While there are many startup firms in this field, we prefer well-established companies, such as the four we analyze below, with the resources to develop… Read More

Their tighter focus is paying off

In 2014, Agilent, a long-time favourite of ours, spun off its electronics-testing business (Keysight) as a separate company. The move made sense, as it let Agilent focus on its main medical lab equipment business.
Keysight has mostly stayed in a narrow range since the split, but… Read More

Texas Roadhouse has better prospects

TEXAS ROADHOUSE $59.73 (Nasdaq symbol TXRH; TSINetwork Rating: Extra Risk) (502-426-9984; www.texasroadhouse.com; Shares o/s: 71.7 million; Market cap: $4.3 billion; Divd yield: 2.0%) is a full-service, casual-dining chain with 582 locations spread across 49 U.S. states and 10 foreign countries. Its restaurants operate under two… Read More

Marketing falls short

WEIGHT WATCHERS INTERNATIONAL $20.26 (Nasdaq symbol WTW; TSINetwork Rating: Extra Risk) (212-589-2700; www.ww.com; Shares o/s: 67.0 million; Market cap: $1.3 billion; No dividends paid) had 3.9 million active subscribers at the end of 2018. That was down 7.1% from the 4.2 million subscribers Weight Watchers… Read More

AMZN distrupts grocers

AMAZON.COM $1,690.81 (Nasdaq symbol AMZN; TSINetwork Rating: Average) (206-266-1000; www.amazon.com; Shares outstanding: 491.2 million; Market cap: $821.8 billion; No dividends paid) continues to disrupt a range of industries. The latest move centres on its reported plan to open dozens of grocery stores in several major… Read More

Tims makes key debut

RESTAURANT BRANDS INTERNATIONAL $63.04 (New York symbol QSR; TSINetwork Rating: Average) (905-845-6511; www.rbi.com; Shares outstanding: 478.0 million; Market cap: $30.1 billion; Dividend yield: 3.2%) has opened its first Tim Hortons restaurant in China, in the People’s Square in Shanghai.
Last year, Restaurant Brands’ Tim Hortons… Read More

Symantec adds expertise

SYMANTEC CORP. $22.95 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (650-527-8000; www.symantec.com; Shares o/s: 639.2 million; Market cap: $14.4 billion; Dividend yield: 1.3%) sells computer-security technology, including antivirus and email-filtering software, to both businesses as well as consumers.
The company continues to enhance its expertise… Read More