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

Gain from Metro’s shift

METRO INC., $56.54, is a buy. The company (Toronto symbol MRU; Shares o/s: 245.5 million; Market cap: $13.8 billion; TSINetwork Rating: Average; Yield: 1.8%; www.metro.ca) operates 950 grocery stores and 650 drugstores, in Quebec, Ontario and New Brunswick.

The retailer continues to benefit as consumers eat… Read More

Cloud strategy boosts Teradata

TERADATA CORP. $51 is still a hold. The company (New York symbol TDC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 109.5 million; Market cap: $5.6 billion; Price-to-sales ratio: 3.0; No dividends paid; TSINetwork Rating: Average; www.teradata.com) makes computers and software to capture and store large… Read More

Low store traffic remains a concern

NORDSTROM INC. $38 remains a hold. The company (New York symbol JWN; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 157.8 million; Market cap: $6.0 billion; Price-to-sales ratio: 0.6; Dividend suspended in March 2020; TSINetwork Rating: Extra Risk; www.nordstrom.com) owns and operates 358 stores in the U.S. and Canada… Read More

New testing system looks promising

BECTON DICKINSON & CO. $258 is a buy. The company (New York symbol BDX; Conservative Growth Portfolio; Manufacturing sector; Shares outstanding: 290.0 million; Market cap: $74.8 billion; Price-to-sales ratio: 4.1; Dividend yield: 1.3%; TSINetwork Rating: Above Average; www.bd.com) operates through three segments: Medical makes an array of devices… Read More

Motorola’s 30% gain is just the start

MOTOROLA SOLUTIONS INC. $189 is a buy. The stock (New York symbol MSI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 169.5 million; Market cap: $32.0 billion; Price-to-sales ratio: 4.3; Dividend yield: 1.5%; TSINetwork Rating: Average; www.motorolasolutions.com) has jumped 30% in the past year. That gain is… Read More

Adobe has all the tools needed to prosper

This leading software firm benefits from the significant number of people working from home during the pandemic. We expect the remote-work trend to continue past the COVID-19 crisis and to spur rising demand for Adobe’s digital conferencing software and other applications.
Meanwhile, there are other drivers… Read More

Thermo adds value

THERMO FISHER SCIENTIFIC INC. $480.41 (New York symbol TMO; TSINetwork Rating: Average) (www.thermofisher.com; Shares outstanding: 393.0 million; Market cap: $189.6 billion; Dividend yield: 0.2%) is now buying pharmaceutical-testing firm PDD Inc, for more than $15 billion.
PPD is a contract-research organization, a type of company that runs studies to test… Read More

DraftKings stays on top with new technology

DraftKings keeps making the right moves to remain the dominant player in the expanding U.S. sports-betting market. Meanwhile, it holds $1.8 billion in cash, which will help it continue to prosper in the coronavirus-affected sports landscape—and beyond. DraftKings is a Power Buy for our Power Growth Investors.
DRAFTKINGS INC.,… Read More

Tap Corteva’s expanding markets

Corteva shares offer investors a number of pluses: Not only is the company at the forefront of key agricultural trends, a prominent activist is driving it to make improvements. As well, the stock is a spinoff. Over the years, we’ve found that spinoffs are about… Read More

COVID-19 lifts private jet demand

BOMBARDIER INC. is still a hold. The company (Toronto symbols BBD.A $1.16 and BBD.B $0.93; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 2.4 billion; Market cap: $2.2 billion; Price-to-sales ratio: 0.4; Dividend suspended in February 2015; TSINetwork Rating: Speculative; www.bombardier.com) recently delivered two of its long-range… Read More

Click-and-collect helps Metro adapt

METRO INC. $58 is a buy. The company (Toronto symbol MRU; Aggressive Growth Portfolio, Consumer sector; Shares o/s: 248.4 million; Market cap: $14.4 billion; Price-to-sales ratio: 0.8; Dividend yield: 1.7%; TSINetwork Rating: Average; www.metro.ca) operates 950 grocery stores and 650 drugstores (mainly under the Jean Coutu banner), in… Read More

New rules could hurt investors

HOME CAPITAL GROUP INC. $30 remains a hold for aggressive investors. The stock (Toronto symbol HCG; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 53.0 million; Market cap: $1.6 billion; Price-to-sales ratio: 3.2; Dividend suspended in May 2017; TSINetwork Rating: Speculative; www.homecapital.com) lets you tap a mortgage lender serving… Read More

Hope you saw our Bulletin

One of the key features of our monthly newsletters is the weekly Hotline we send to subscribers. This keeps them up-to-date on any big news or price moves in between newsletters.
And what’s more, we also, from time to time, issue Special Bulletins for events that… Read More

Vaccines will boost McKesson

MCKESSON CORP. $188 is a buy for aggressive investors. The company (New York symbol MCK; Aggressive Growth Portfolio, Consumer sector; Shares o/s: 191.8 million; Market cap: $36.1 billion; Price-to-sales ratio: 0.1; Dividend yield 0.9%; TSINetwork Rating: Above Average; www.mckesson.com) is the largest wholesale drug distributor in the U.S…. Read More

Lockdowns helped Sherwin prosper

SHERWIN-WILLIAMS CO. $241 is a still hold. The company (New York symbol SHW; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 267.6 million; Market cap: $64.5 billion; Price-to-sales ratio: 3.5; Dividend yield: 0.9%; TSINetwork Rating: Above Average; www.sherwin-williams.com) continues to benefit from strong demand for its paints as the… Read More