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

NortonLifeLock targets European leader Avast

Growth by acquisition adds risk—especially with a purchase as big as Avast. However, demand for cybersecurity is now booming; and Avast is very complementary to NortonLifeLock’s current offerings and customer base.
NORTONLIFELOCK, $25.59, is a buy. The company (Nasdaq symbol NLOK; TSINetwork Rating: Extra Risk) (nortonlifelock.com;… Read More

These buys are making all the right moves

Long-time readers know that we keep you informed of important news about the stocks we cover. That means highlighting developments or strategies that promise to brighten your prospects. Here are two buys that stand out this month:
SHOPIFY INC., $1,972.01, is a buy. The company (Toronto… Read More

PagerDuty targets European growth

PAGERDUTY INC., $41.42, is a buy. The company (New York symbol PD; TSINetwork Rating: Extra Risk) (www.pagerduty.com; Shares o/s: 83.6 million; Market cap: $3.4 billion; No dividends paid) has lots of room for expansion internationally. It now generates only around 22% of its revenue outside… Read More

Domino’s offers a new guarantee

DOMINO’S PIZZA $470.37 (New York symbol DPZ; TSINetwork Rating: Average) (www.dominos.com; Shares o/s: 38.8 million; Market cap: $18.4 billion; Dividend yield: 0.8%) has launched its Domino’s Carside Delivery 2-Minute Guarantee. The idea revolves around the guaranteed delivery of pizzas from the oven to a customer’s… Read More

Warner Music signs another star

WARNER MUSIC GROUP, $37.04, is a buy. The company (Nasdaq symbol WMG; TSINetwork Rating: Average) (www.wmg.com; Shares o/s: 510.0 million; Market cap: $18.9 billion; Dividend yield: 1.3%) is now adding to its music library with the purchase of celebrated French DJ David Guetta’s recorded-music catalogue… Read More

Next step for AMZN

AMAZON.COM INC. $3,585.20 is a buy. The company (Nasdaq symbol AMZN; TSINetwork Rating: Average) (www.amazon.com; Shares o/s: 504.3 million; Market cap: $1.8 trillion; No divds.) now has a new CEO—long-time Amazon employee Andy Jassy—after Jeff Bezos stepped down on July 5. The date marks 27… Read More

New products spur Boston Scientific

There’s little doubt that the developing world’s aging population will continue to spend more on medical services for years to come. Medical device makers are well positioned to capture a share of that increased spending.
We continue to see attractive investment opportunities for our subscribers among… Read More

Investors will gain from lower costs

FINNING INTERNATIONAL INC. $31 is a buy. The company (Toronto symbol FTT; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 162.4 million; Market cap: $5.0 billion; Price-to-sales ratio: 0.8; Dividend yield: 2.6%; TSINetwork Rating: Above Average; www.finning.com) sells and services Caterpillar-brand heavy equipment in… Read More

Pick Stantec for U.S. infrastructure profits

The Biden administration and Republican congressional leaders recently agreed to spend $1.2 trillion U.S. on various infrastructure projects. That’s good news for engineering firms Stantec and SNC, both of which have substantial U.S. businesses. However, we continue to recommend Stantec over SNC for your new… Read More

CGI hits a new high

CGI INC., $114 is your #1 Aggressive buy for 2021. The company (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 247.9 million; Market cap: $28.3 billion; Price-to-sales ratio: 2.3; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) is Canada’s largest provider… Read More

Lower costs spur McKesson

MCKESSON CORP. $189 is a buy for aggressive investors. The company (New York symbol MCK; Aggressive Growth Portfolio, Consumer sector; Shares o/s: 158.2 million; Market cap: $29.9 billion; P-to-S ratio: 0.1; Divd. yield 0.9%; TSINetwork Rating: Above Average; www.mckesson.com) is the largest wholesale drug distributor… Read More

Spicemaker adds capacity

MCCORMICK & CO. INC. $86 remains a hold. The company (New York symbol MKC; Income Portfolio, Consumer sector; Shares outstanding: 267.0 million; Market cap: $23.0 billion; Price-to-sales ratio: 3.9; Dividend yield: 1.6%; TSINetwork Rating: Average; www.mccormick.com) continues to benefit from strong consumer sales of its… Read More

These tech superstars also have appeal

Big technology stocks like Alphabet (see page 61) and the three we analyze below have been superstars in the past year as COVID-19 sparked demand for their products and services. Even though the pandemic is easing, we still like their long-term outlooks. However, only two… Read More

Nvidia cuts its crypto risk

NVIDIA CORP. $762 remains a buy for aggressive investors. The company (Nasdaq symbol NVDA; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 623.0 million; Market cap: $474.7 billion; Price-to-sales ratio: 24.7; Dividend yield: 0.1%; TSINetwork Rating: Average; www.nvidia.com) is a leading designer of 3D-capable… Read More