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

Here are key updates on your holdings

COLLIERS INTERNATIONAL GROUP INC. $138 remains a buy for aggressive investors. This company (Toronto symbol CIGI; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 42.7 million; Market cap: $5.9 billion; Price-to-sales ratio: 1.1; Dividend yield: 0.3%; TSINetwork Rating: Extra Risk; www.colliers.com) offers a range of services, including… Read More

Their focus on services is a smart move

Both of these engineering firms mainly focus on designing and consulting services. That cuts their risk to expensive cost overruns. We feel Stantec remains the better pick as it has much less exposure to unprofitable legacy projects.
STANTEC INC. $56 is a buy. The stock (Toronto symbol STN;… Read More

New investments start to pay off

THOMSON REUTERS CORP. $120 is still a buy. The company (Toronto symbol TRI; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 486.2 million; Market cap: $58.3 billion; Price-to-sales ratio: 7.2; Dividend yield: 1.9%; TSINetwork Rating: Above Average; www.thomsonreuters.com) reports that its revenue in the three months ended March 31,… Read More

These two grocers just keep getting stronger

Loblaw and Metro have successfully weathered the pandemic so far and, in fact, both stocks are trading at all-time highs for our subscribers! Meanwhile, many of their customers who opted for home delivery (or in-store pickup) during pandemic lockdowns are sticking with that value-added service… Read More

Cisco rewards investors

CISCO SYSTEMS INC. $49 is a buy. The company (Nasdaq symbol CSCO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.2 billion; Market cap: $205.8 billion; Price-to-sales ratio: 4.2; Dividend yield: 3.1%; TSINetwork Rating: Average; www.cisco.com) makes hardware and software to link computer networks.
Cisco raised your quarterly… Read More

Sale fuels big buyback plan

STANLEY BLACK & DECKER INC. $139 is a buy. The company (New York symbol SWK; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 163.4 million; Market cap: $22.7 billion; Price-to-sales ratio: 1.5; Dividend yield: 2.3%; TSINetwork Rating: Average; www.stanleyblackanddecker.com) is one of the world’s largest makers of hand… Read More

Look for PayPal to rebound

PAYPAL HOLDINGS INC. $83 is a buy, but only for highly aggressive investors. The company (Nasdaq symbol PYPL; Aggressive Growth Portfolio, Finance sector; Shares o/s: 1.2 billion; Market cap: $99.6 billion; Price-to-sales ratio: 4.0; No dividends paid; TSINetwork Rating: Above Average; www.paypal.com) processes online transactions on millions of… Read More

Top lenders rely on these service providers

These stocks are a good way for investors to diversify their Finance sector holdings beyond the big banks. Both provide vital services to other lenders and firms, which helps cut your risk.
STATE STREET CORP. $67 is a buy. The company (New York symbol STT; Aggressive Growth Portfolio,… Read More

Higher military spending lifts RTX

RAYTHEON TECHNOLOGIES CORP. $99 is a buy. The company (New York symbol RTX; Conservative Growth Portfolio; Manufacturing & Industry sector; Shares outstanding: 1.5 billion; Market cap: $148.5 billion; Dividend yield: 2.2%; Price-to-sales ratio: 2.3; TSINetwork Rating: Above Average; www.rtx.com) took its current form on April 3, 2020, with the merger… Read More

Small acquisition a nice fit for IFF

INTERNATIONAL FLAVORS & FRAGRANCES INC. $123 is a buy. The company (New York symbol IFF; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 254.7 million; Market cap: $31.3 billion; Price-to-sales ratio: 2.6; Dividend yield: 2.6%; TSINetwork Rating: Above Average; www.iff.com) makes compounds that improve the taste of food and… Read More

Here’s a buy for turbulent times

Mondelez has held up well during the recent market turmoil. While the stock is down about 3% since the start of 2022, the S&P 500 Index has suffered a 12% drop.
We feel the stock remains a solid pick for conservative investors. Mondelez continues to launch… Read More

Here are two stocks we now see as sells

Long-time readers know that we are constantly reevaluating our stock picks. Here are two stocks that have only limited growth prospects for the foreseeable future. We now see them both as sells.
WW INTERNATIONAL, $10.45 (Nasdaq symbol WW; TSINetwork Rating: Extra Risk) (www.ww.com; Shares outstanding: 70.1 million; Market… Read More

Wyndham targets growth market

WYNDHAM HOTELS & RESORTS, $90.64 (New York symbol WH; TSINetwork Rating: Extra Risk) (www.wyndhamhotels.com; Shares o/s: 92.2 million; Market cap: $8.3 billion; Dividend yield: 1.4%), now plans to create an extended-stay brand focused on the budget market. The target is a $50-$55 average daily room rate.
Extended stay properties… Read More

Travel + Leisure expands into wine

TRAVEL + LEISURE CO., $55.79, is a buy. The company (New York symbol TNL; TSINetwork Rating: Extra Risk) (www.travelandleisureco.com; Shares o/s: 85.5 million; Market cap: $4.7 billion; Dividend yield: 2.9%) is now the world’s largest vacation-ownership and exchange company. It operates 245 timeshare resorts with 880,000 owners.
Travel + Leisure… Read More

Adobe prospers in the pandemic and beyond

This leading software firm benefited from the significant number of people working from home during the pandemic. Going forward. 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 apps.
Meanwhile, there are… Read More

Amazon aims to compete with Elon Musk

Amazon is now accelerating its Project Kuiper initiative. This aims to provide high-speed broadband service using a constellation of low Earth orbit satellites. This latest move will also strengthen its competitive position against Elon Musk’s SpaceX, which is currently building out its rival Starlink program.
AMAZON.COM… Read More

Tap into IT’s future

PAGERDUTY INC., $31.28, is a buy. The company (New York symbol PD; TSINetwork Rating: Extra Risk) (www.pagerduty.com; Shares o/s: 87.1 million; Market cap: $2.9 billion; No dividends paid) operates a platform that collects real-time data from software systems and devices and then notifies its IT customers of any… Read More

Regeneron offers you biotech gains

We think the drug industry will enjoy great success over the next decade. Still, due to the nature of the business, results will vary widely and unpredictably from one drug company to another. A volatile market like the one we expect for drug stocks will… Read More