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:
Invest mainly in well-established companies;
Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
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.
STANTEC INC. $110 is a buy. This engineering firm (Toronto symbol STN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 114.1 million; Market cap: $12.6 billion; Price-to-sales ratio: 1.8; Dividend yield: 0.8%; TSINetwork Rating: Extra Risk; www.stantec.com) has a new growth plan to mitigate the impact of… Read More
These three manufacturers operate plants across North America. That makes them vulnerable to rising input costs if the U.S. imposes a 25% tariff on imports from Canada and Mexico.
Despite tariff uncertainty, we still like the long-term prospects for CAE and Linamar. That’s because they have… Read More
APA CORP. $23 (www.apacorp.com) is a hold. The company produces oil and natural gas in the U.S., Egypt and the U.K. In April 2024, APA acquired Callon Petroleum Company (New York symbol CPE) in an all-stock merger worth $4.5 billion. APA also assumed Callon’s debt of $2.0 billion… Read More
Starbucks’ shares have gained 45% since it named Brian Niccol as its new CEO in August 2024. Investors expect his experience turning around Chipotle Mexican Grill after a food safety crisis will help the company attract more customers and spur its earnings. In fact, it… Read More
TEXAS INSTRUMENTS INC. $180 is a buy. The company (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing sector; Shares outstanding: 913.0 million; Market cap: $164.3 billion; Price-to-sales ratio: 10.6; Dividend yield: 3.0%; TSINetwork Rating: Average; www.ti.com) is a leading maker of analog chips, which convert inputs like touch and… Read More
ARCHER DANIELS MIDLAND CO. $52 is a hold. The company (New York symbol ADM; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 494.4 million; Market cap: $25.7 billion; Price-to-sales ratio: 0.3; Dividend yield: 3.8%; TSINetwork Rating: Above Average; www.adm.com) processes corn, wheat, soybeans, flax seed and other… Read More
BOEING CO. $174 remains a hold. The aircraft maker (New York symbol BA; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 613.9 million; Market cap: $106.8 billion; Price-to-sales ratio: 1.7; Dividend suspended in June 2020; TSINetwork Rating: Extra Risk; www.boeing.com) delivered 57 commercial jetliners in the fourth quarter of… Read More
On April 2, 2024, the old General Electric spun off its power equipment business as GE Vernova. Investors received one share of the new firm for every four GE shares they held. Each stock is up sharply since the split, but both are now very… Read More
YUM CHINA HOLDINGS INC. $45 is a buy for aggressive investors. The company (New York symbol YUMC; Aggressive Growth Portfolio, Consumer Sector; Shares outstanding: 391.0 million; Market cap: $17.6 billion; Price-to-sales ratio: 1.6; Dividend yield: 1.4%; TSINetwork Rating: Average; www.yumchina.com) is China’s largest fast-food operator with over 15,800… Read More
These two software makers are adding artificial intelligence (AI) tools to their programs. That should make them more appealing to their customers and continue to fuel their earnings.
ADOBE INC. $442 is a buy for aggressive investors. The software maker (Nasdaq symbol ADBE; Aggressive Growth Portfolio, Manufacturing &… Read More
CISCO SYSTEMS INC. $60 is a buy. The company (Nasdaq symbol CSCO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.0 billion; Market cap: $240.0 billion; Price-to-sales ratio: 4.5; Dividend yield: 2.7%; TSINetwork Rating: Average; www.cisco.com) is a leading maker of products that link and manage computer… Read More
DANAHER CORP. $224 is still a buy for aggressive investors. The company (New York symbol DHR; Aggressive Growth Portfolio; Manufacturing sector; Shares outstanding 722.3 million; Market cap: $161.8 billion; Price-to-sales ratio: 7.7; Dividend yield: 0.5%; TSINetwork Rating: Above Average; www.danaher.com) makes precision-testing equipment and tools for medical research… Read More
You Can See Our Current Power Recommendations For February 2025 Here.
Understanding our recommendations: Power Buy—These stocks are our top choices for new buying now. We feel each currently offers the best combination of fundamentals (earnings, sales, cash flow and so on) plus external factors (industry trends… Read More
ACI Worldwide and Broadridge have winning business models, especially in today’s expanding financial markets. We believe that will lead to strong growth in future years. Both are hitting new highs, but we still see them as buys.
ACI WORLDWIDE, $52.88, is a buy. The firm (Nasdaq symbol… Read More
Shopify offers merchants of all sizes Internet-based software to design, set up and manage e-commerce stores across multiple sales channels. It also handles digital payments and shipping.
SHOPIFY, $153.03, remains a buy. The company (Toronto symbol SHOP; TSINetwork Rating: Extra Risk) (www.shopify.ca; Shares outstanding: 1.2 billion; Market cap: $197.0… Read More
Many traditional bricks-and-mortar retailers continue to struggle against the pandemic-spurred onslaught of online shopping and the impact of past inflation on consumer spending. Still, we believe the unique markets of TJX and North West offer you the possibility of strong gains ahead.
THE TJX COMPANIES, $122.57, (New… Read More
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:
CELSIUS HOLDINGS INC., $25.35, (Nasdaq symbol CELH; TSINetwork Rating: Extra Risk) (www.celsius.com;… Read More
Artificial intelligence (AI) is an example of an investment idea that could boost your investment returns, or, more likely, end up costing you money. All in all, we think that the biggest, surest gains from AI will come from investing in established businesses that are… Read More
BOSTON SCIENTIFIC CORP., $100.31, is a buy. The company (New York symbol BSX; TSINetwork Rating: Average) (bostonscientific.com; Shares o/s: 1.5 billion; Market cap: $148.7 billion; No dividends paid) has agreed to acquire the rest of Bolt Medical for $443 million. The deal also includes payments of up to… Read More
GOODYEAR TIRE & RUBBER, $9.34, is a buy. The manufacturer (Nasdaq symbol GT; TSINetwork Rating: Extra Risk) (Shares outstanding: 284.7 million; Market cap: $2.6 billion; No dividends paid) now plans to sell its Dunlop brand to Japan’s Sumitomo Rubber Industries for about $701 million.
The sale will include Dunlop… Read More