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

These top techs serve growing markets

SHOPIFY INC. $434.95 (Toronto symbol SHOP; TSINetwork Rating: Extra Risk) (613-241-2828; www.shopify.ca; Shares outstanding: 111.5 million; Market cap: $48.5 billion; No dividend) offers merchants of all sizes Internet-based software to design, set up and manage stores across multiple sales channels.
Shopify continues to attract more merchants to its platform… Read More

Amazon adds Go stores

AMAZON.COM $1,908.79 (Nasdaq symbol AMZN; TSINetwork Rating: Average) (206-266-1000; www.amazon.com; Shares o/s: 492.3 million; Market cap: $920.5 billion; No divds. paid) continues to expand into bricks-and-mortar retailing with its 13th Amazon Go store. This marks its second for New York City.
Amazon Go stores are known for their “Just… Read More

Broadridge adds a niche

BROADRIDGE FINANCIAL SOLUTIONS $130.56 New York symbol BR; TSINetwork Rating: Average) (201-714-3000; www.broadridge.com; Shares outstanding: 116.1 million; Market cap: $15.1 billion; Dividend yield: 1.5%) has completed the acquisition of Ireland-based Rockall Technologies Ltd. for $37 million.
That firm makes securities-based lending- and collateral-management software for wealth management firms and… Read More

FirstService fills a gap

FIRSTSERVICE CORP. $131.32 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 34.7 million; Market cap: $4.7 billion; Dividend yield: 0.6%) has agreed to buy Global Restoration Holdings, the parent company of Interstate Restoration and FirstOnSite Restoration. Neither party has yet disclosed a purchase price.
FirstOnSite Restoration… Read More

R&D opens new markets

SIERRA WIRELESS $15.87 (Toronto symbol SW; TSINetwork Rating: Extra Risk) (604-231-1100; www.sierrawireless.com; Shares outstanding: 36.2 million; Market cap: $575.9 million; No dividends paid) faces challenges this year: sales in the automotive industry, a big market for the company, are slowing; and a continuing shortage of Intel chips has… Read More

We’re adding ResMed to our picks

RESMED INC. $120.54 (New York symbol RMD; TSINetwork Rating: Average) (800-424-0737; www.resmed.com; Shares o/s: 143.4 million; Market cap: $16.9 billion; Divd. yield: 1.2%) makes and distributes CPAP (nasal continuous positive airway pressure) medical devices. They are used to treat patients with sleep apnea, chronic obstructive pulmonary disease and… Read More

Our top aggressive pick has a bright future

CGI INC. $101 (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 274.2 million; Market cap: $27.7 billion; Price-to-sales ratio: 2.3; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) is Canada’s largest provider of computer outsourcing services. It helps its clients automate routine functions… Read More

Higher costs outpace revenue gain

SAPUTO INC. $40 (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 390.9 million; Market cap: $15.6 billion; Price-to-sales ratio: 1.2; Dividend yield: 1.7%; TSINetwork Rating: Average; www.saputo.com) is Canada’s largest producer of dairy products. It also operates dairies in the U.S., Australia and Argentina.
Due to… Read More

Merger savings help Nutrien expand

NUTRIEN LTD. $71 (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 594.6 million; Market cap: $42.2 billion; Price-to-sales ratio: 2.2; Dividend yield: 3.4%; TSINetwork Rating: Average; www.nutrien.com) took its current form on January 1, 2018, through the merger of Agrium (old symbol AGU) and rival… Read More

Growth ahead for fast-food giant

RESTAURANT BRANDS INTERNATIONAL INC. $91 (Toronto symbol QSR; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 461.3 million; Market cap: $42.0 billion; Price-to-sales ratio: 7.8; Dividend yield: 2.9%; TSINetwork Rating: Average; www.rbi.com) is the world’s third-largest fast-food operator after McDonald’s (No. 1) and Yum Brands (No. 2). It… Read More

Two ways to profit from Canadian consumers

LOBLAW COMPANIES $70.71 (Toronto symbol L; Shares outstanding: 369.1 million; Market cap: $25.8 billion; TSINetwork Rating: Above Average; Dividend yield: 1.8%; www.loblaw.ca) operates 1,085 supermarkets and 1,337 Shoppers Drug Mart pharmacies across Canada.
On November 1, 2018, Loblaw transferred its stake in Choice Properties REIT (symbol CHP.UN on… Read More

Low p/e cuts Symantec’s risk

SYMANTEC CORP. $19 (Nasdaq symbol SYMC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 618.2 million; Market cap: $11.7 billion; Price-to-sales ratio: 2.5; Dividend yield: 1.6%; TSINetwork Rating: Average; www.symantec.com) sells computer-security technology, including antivirus and email-filtering software, to businesses and consumers.
Symantec expects revenue of between… Read More

Medical-device makers maintain their appeal

AGILENT TECHNOLOGIES INC. $67 (New York symbol A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 317.5 million; Market cap: $21.3 billion; Price-to-sales ratio: 4.3; Dividend yield: 1.0%; TSINetwork Rating: Average; www.agilent.com) makes specialized testing equipment for medical research laboratories and industrial clients.
In its fiscal 2019… Read More

Quaker set to complete big merger

QUAKER CHEMICAL CORP. $187 (New York symbol KWR; Income Portfolio, Manufacturing & Industry sector; Shares o/s: 13.3 million; Market cap: $2.5 billion; Price-to-sales ratio: 2.9; Dividend yield: 0.8%; TSINetwork Rating: Average; www.quakerchem.com) agreed to acquire rival Houghton International Inc. in 2017. Based in Philadelphia, the privately owned… Read More

One of these tech leaders is a buy

SYMANTEC CORP. $20.29 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (650-527-8000; www.symantec.com; Shares outstanding: 639.2 million; Market cap: $13.0 billion; Dividend yield: 1.5%) sells computer-security technology, including antivirus and email-filtering software, to businesses and consumers.
The stock is down 19.9% from its recent peak of $24.77 on April 17, 2019… Read More

Calian is a value pick

CALIAN GROUP $33.49 (Toronto symbol CGY; TSINetwork Rating: Speculative) (613-599-8600; www.calian.com; Shares o/s: 7.9 million; Market cap: $263.9 million; Dividend yield: 3.3%) has two main operations: it provides clients with engineers, health-care workers and other skilled professionals on a contract basis; and it sells hardware and software for… Read More

BMTC buys back shares

BMTC GROUP $13.14 (Toronto symbol GBT; TSINetwork Rating: Extra Risk) (514-648-5757; No website; Shares o/s: 34.5 million; Market cap: $452.6 million; Divd. yield: 2.1%) is one of Quebec’s largest retailers of furniture, electronics and household appliances.
The company will continue to aggressively repurchase its shares. Stock buybacks reduce the total… Read More

Hold on to these real estate picks

FIRSTSERVICE CORP. $115.56 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 36.0 million; Market cap: $4.2 billion; Dividend yield: 0.7%) set up its commercial real estate business, Colliers International Group, as a separate company on June 1, 2015 (see this page). It then handed out… Read More

QSR has big growth plans

RESTAURANT BRANDS INTERNATIONAL $68.73 (New York symbol QSR; TSINetwork Rating: Average) (905-845-6511; www.rbi.com; Shares o/s: 478.0 million; Market cap: $32.9 billion; Dividend yield: 2.9%) has 17,796 Burger King, 4,846 Tim Hortons (coffee and donuts) and 3,102 Popeyes Louisiana Kitchen (crispy fried chicken) outlets in over 100 countries.
The company… Read More