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

Their research keeps your gains climbing

With all stocks—but especially tech stocks—you can put the odds in your favour by investing in companies that have hidden assets. Most other investors overlook them.
Today’s best-hidden asset is research spending (see box this page). Both Adobe and ACI Worldwide look expensive in relation to… Read More

Cut your risk with our sell-half rule

Our “sell-half” says that if you own a stock and you have doubled your money in it, you should sell half—so you get back your initial stake.
However, the sell-half rule applies mainly to stocks we rate as Start-up or Speculative.
Every case is different, but… Read More

Power up your returns

Welcome to Power Growth Investor! This launch issue features just nine of our more than 60 high-growth buys (see chart page 7). Each has strong potential to expand your investment returns—indeed, many have already rewarded our readers with outsized gains.
Adobe Inc., on page 5,… Read More

High-end brands benefit its investors

ANDREW PELLER LTD. (A shares) is a buy for Successful Investors. The company (Toronto symbols ADW.A $14 and ADW.B $14; Income Portfolio, Consumer sector; Shares o/s: 44.2 million; Market cap: $618.8 million; Price-to-sales ratio: 1.6; Divd. yield: 1.6%; www.andrewpeller.com) began operating in 1961, and is Canada’s second-largest wine producer, after Arterra Wines (formerly… Read More

Demand set to lift your CAE returns

CAE INC., $33, is a buy. The company (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 265.0 million; Market cap: $8.7 billion; Price-to-sales ratio: 2.5; Dividend yield: 1.3%; TSINetwork Rating: Average; www.cae.com) has opened three new pilot training centres in Europe—two in England and… Read More

CGI is still your top aggressive stock pick

We continue to believe investors benefit from holding a small portion of their portfolios in aggressive stocks. That includes the three we analyze below.
Computer outsourcing specialist CGI remains our top aggressive pick, It has handed our investors a 30% gain in the past year.
We also… Read More

PayPal lets you tap fast-growing markets

PAYPAL HOLDINGS INC. $104 (Nasdaq symbol PYPL; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 1.2 billion; Market cap: $124.8 billion; Price-to-sales ratio: 7.5; No dividends paid; TSINetwork Rating: Above Average; www.paypal.com) took its current form on July 1, 2015 when online auction company eBay Inc. (Nasdaq symbol… Read More

Cost savings push up its earnings

BECTON DICKINSON & CO. $254 (New York symbol BDX; Conservative Growth Portfolio; Consumer sector; Shares o/s: 269.7 million; Market cap: $68.5 billion; Price-to-sales ratio: 4.0; Divd. yield: 1.2%; TSINetwork Rating: Above Average; www.bd.com) operates in three segments: Medical makes a broad array of devices for hospitals, doctors’… Read More

Takeover interest highlights its value

SYMANTEC CORP. $24 (Nasdaq symbol SYMC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 639.2 million; Market cap: $15.3 billion; Price-to-sales ratio: 3.1; Dividend yield: 1.3%; TSINetwork Rating: Average; www.symantec.com) recently agreed to sell its Enterprise Security business to Broadcom Inc. (Nasdaq symbol AVGO) for $10.7… Read More

Acquisition doubles Cintas

CINTAS CORP. $267 (Nasdaq symbol CTAS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 104.5 million; Market cap: $27.9 billion; Price-to-sales ratio: 4.1; Dividend yield: 0.8%; TSINetwork Rating: Average; www.cintas.com) designs and makes uniforms, then sells them to businesses, mainly in North America. It also offers… Read More

Parent and spinoff are holds for now

FIRSTSERVICE CORP. $135.52 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 39.2 million; Market cap: $4.7 billion; Dividend yield: 0.6%) set up its commercial real estate business, Colliers International Group, as a separate company on June 1, 2015 (see this page). It… Read More

SYMC gains new suitors

SYMANTEC CORP. $24.02 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (650-527-8000; www.symantec.com; Shares o/s: 617.5 million; Market cap: $14.9 billion; Divd. yield: 1.3%) recently agreed to sell part of its business to Broadcom Inc. (symbol AVGO on Nasdaq). That firm plans to buy Symantec’s Enterprise Security… Read More