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

Tap into travel trends with these two

The coronavirus pandemic forced the cancellation of most vacation plans. However, the reopening of the economy has spurred strong demand for travel, and both Wyndham, and Travel + Leisure should benefit from that surge. We see each as a buy.
WYNDHAM HOTELS & RESORTS, $78.26, is… Read More

Warner Music targets a major French acquisition

We like Warner Music’s competitive prospects in its niche market—and a big French acquisition would just add to its attractive outlook.
WARNER MUSIC GROUP, $33.20, is a buy. The company (Nasdaq symbol WMG; TSINetwork Rating: Average) (www.wmg.com; Shares outstanding: 515.7 million; Market cap: $17.6 billion; Dividend yield: 2.1%) recently… Read More

Chipotle aims for Gen-Z workers

CHIPOTLE MEXICAN GRILL, $2,722.69, is a buy. The company (New York symbol CMG; TSINetwork Rating: Extra Risk) (Shares outstanding: 27.4 million; Market cap: $74.6 billion; No divid.) is now rolling out new benefits aimed to appeal to its Gen-Z labour pool, which accounts for more than 73% of its… Read More

Innovation spurs these two restaurant stocks

During the pandemic, both Domino’s Pizza and Texas Roadhouse implemented savvy strategies to support their businesses. Now, going forward, we think each is well-positioned to capitalize on its popular offerings to keep attracting customers. Each stock also remains a buy.
DOMINO’S PIZZA, $450.97 (New York symbol DPZ;… Read More

This stock offers limited prospects

You should remain wary of stocks that attract broker/media attention because of high-profile products or services and their business models. Here’s a closer look at one stock with risks that prospective investors should take into consideration:
BRILLIANT EARTH, $2.56, (Nasdaq symbol BRLT; TSI Rating: Extra Risk) (Shares o/s:… Read More

MP Material hurt by lower prices

MP MATERIALS, $14.05, is still a buy. The company (New York symbol MP; TSINetwork Rating: Extra Risk) (www.mpmaterials.com; Shares o/s: 178.1 million; Market cap: $2.6 billion; No divids.) saw its revenue fall 55.8% in the quarter ended December 31, 2023, to $41.2 million from $93.2 million a year… Read More

Good pick for ABBV

ABBVIE INC., $179.86, is a buy. The company (New York symbol ABBV; TSINetwork Rating: Above Average) (www.abbvie.com; Shares outstanding: 1.8 billion; Market cap: $319.6 billion; Dividend yield: 3.5%) continues to hit new, all-time highs—and the stock is now up 84.1% since we first recommended it in our August… Read More

Broadridge is an emerging AI leader

Broadridge profits from its recurring fee-based revenue from long-term client contracts and its leading position in proxy and other investor communication services. Its dominance in providing a wide range of back-office services, plus its high-quality clientele, also helps cut its risk. The company is now… Read More

Capital spending cuts free up cash

NUTRIEN LTD. $71 is a buy. The company (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 494.5 million; Market cap: $35.1 billion; Price-to-sales ratio: 0.9; Dividend yield: 4.1%; TSINetwork Rating: Average; www.nutrien.com) is the world’s largest producer of potash, nitrogen (made from natural gas) and phosphate… Read More

Use our updates to enhance your portfolio: SNC-Lavalin, Teck Resources & Metro

SNC-LAVALIN GROUP INC. $56 is still a hold. The engineering company (Toronto symbol ATRL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 175.6 million; Market cap: $9.8 billion; Price-to-sales ratio: 1.1; Dividend yield: 0.1%; TSINetwork Rating: Average; www.atkinsrealis.com) is now operating as AtkinsRéalis. The change is part… Read More

Colliers strengthens its position

COLLIERS INTERNATIONAL GROUP INC. $158 is a buy for aggressive investors. This company (Toronto symbol CIGI; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 48.7 million; Market cap: $7.7 billion; Price-to-sales ratio: 1.3; Dividend yield: 0.3%; TSINetwork Rating: Extra Risk; www.colliers.com) offers a range of services, including… Read More

Lower costs will help Saputo adapt

Saputo has struggled in the past few years, as consumers shift away from dairy products to non-dairy, plant-based milks. In response, the company has added new products, such as goat cheese. Saputo is also in the midst of a major plan to improve its efficiency,… Read More

CGI buys back more of its shares

CGI INC. $156 is your #1 Aggressive Buy for 2024. The company (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 231.3 million; Market cap: $36.1 billion; Price-to-sales ratio: 2.6; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) is Canada’s largest provider of computer-outsourcing services… Read More

RBI lifts your dividend

RESTAURANT BRANDS INTERNATIONAL INC. $110 is a buy for aggressive investors. The fast-food operator (Toronto symbol QSR, Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 452.0 million; Market cap: $49.7 billion; Price-to-sales ratio: 5.2; Dividend yield: 2.9%; TSINetwork Rating: Average; www.rbi.com) has 31,079 outlets in over 100 countries,… Read More

Two blue-chips for safety-conscious investors

Here are two of our top safety-conscious recommendations. Both have strong growth ahead. Look for that to spur their share prices and your returns.
LOBLAW COMPANIES, $147.30, is a buy. The retailer (Toronto symbol L; Shares outstanding: 310.4 million; Market cap: $45.5 billion; TSINetwork Rating: Above Average; Dividend yield:… Read More