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

Quaker sees more savings ahead

QUAKER CHEMICAL CORP. $249 is still a buy. The company (New York symbol KWR; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 17.8 million; Market cap: $4.4 billion; Price-to-sales ratio: 4.4; Dividend yield: 0.6%; TSINetwork Rating: Average; www.quakerchem.com) completed its acquisition of rival specialty chemicals maker Houghton International… Read More

These two will build on their strong start

On April 3, 2020, aerospace products maker Raytheon Technologies Corp. (formerly United Technologies) spun off its Otis (elevators) and Carrier (heating and air conditioning equipment) businesses. For each share investors held, they received 0.5 of a share in the new Otis and 1 share in… Read More

Fast-food powers Lamb Weston

LAMB WESTON HOLDINGS INC. $73 is a buy. The company (New York symbol LW, Income Portfolio, Consumer sector; Shares outstanding: 146.1 million; Market cap: $10.7 billion; Price-to-sales ratio: 2.9; Dividend yield: 1.3%; TSINetwork Rating: Average; www.lambweston.com) is a leading producer of frozen french fries, potatoes and other packaged… Read More

The pandemic fuels Stanley’s gains

STANLEY BLACK & DECKER INC. $186 is a buy. The company (New York symbol SWK; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 160.2 million; Market cap: $28.8 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.8%; TSINetwork Rating: Average; www.stanleyblackanddecker.com) is one of the world’s largest makers of hand… Read More

Pluton brings Xbox security to PCs

MICROSOFT CORP. $214 is a buy. The company (Nasdaq symbol MSFT; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 7.6 billion; Market cap: $1.6 trillion; Price-to-sales ratio: 11.0; Dividend yield: 1.0%; TSINetwork Rating: Above Average; www.microsoft.com) has developed a new security technology that chipmakers can embed in… Read More

Activist highlights ACI’s prospects

ACI WORLDWIDE, $24.32, is a buy. The company (Nasdaq symbol ACIW; TSINetwork Rating: Extra Risk) (www.aciworldwide.com; Shares o/s: 116.1 million; Market cap: $2.9 billion; No divds.) has attracted increased interest from activist investor Starboard Value LP. Starboard now holds a 9% stake in ACI. That… Read More

These industrials are weathering the virus

The coronavirus pandemic presents both of these industrials with unique challenges. However, each has streamlined operations and is prepared to weather this crisis to prosper in the future. We see both stocks as buys.
GOODYEAR TIRE & RUBBER $10.65 (Nasdaq symbol GT; TSINetwork Rating: Extra… Read More

Couche-Tard enters key market

ALIMENTATION COUCHE-TARD $44.36 is a buy. This established retailer (Toronto symbol ATD.B; TSINetwork Rating: Average) (www.couchetard.com; Shares outstanding: 1.11 billion; Market cap: $50.4 billion; Dividend yield: 0.6%) operates 11,988 convenience stores across North America and Europe.
The company has now agreed to buy Convenience Retail… Read More

These plans will boost your 53% gain

This leading software firm benefits from the significant number of people working from home during the pandemic—in fact, the stock is up a stellar 53% for our subscribers over the past year. We expect the remote-work trend to continue past the COVID-19 crisis and to… Read More

Restaurant closures hurt Saputo

SAPUTO INC. $35 is still a hold. The company (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 408.7 million; Market cap: $14.3 billion; Price-to-sales ratio: 1.0; Dividend yield: 2.1%; TSINetwork Rating: Average; www.saputo.com) is Canada’s largest producer of dairy products, including milk, butter… Read More

High debt load still a big risk factor

BOMBARDIER INC. remains a hold for aggressive investors. The company (Toronto symbols BBD.A $0.44 and BBD.B $0.295; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 2.4 billion; Market cap: $744 million; Price-to-sales ratio: 0.05; Divd. suspended in February 2015; TSINetwork Rating: Speculative; www.bombardier.com) delivered… Read More

These safety-conscious stocks remain buys

OVINTIV INC., $12.64, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 259.9 million; Market cap: $3.3 billion; TSINetwork Rating: Average; Dividend yield: 3.9%) operates three core properties: Montney (B.C.), Anadarko (Oklahoma) and Permian (Texas). In addition to natural gas, these fields produce… Read More

Loblaw widens its scope

LOBLAW COMPANIES, $66.13, is a buy. The retailer (Toronto symbol L; Shares outstanding: 356.9 million; Market cap: $23.5 billion; TSINetwork Rating: Above Average; Dividend yield: 1.9%; www.loblaw.ca) aims to boost your returns with new investments outside of its core businesses.
For example, it’s re-entering the… Read More

CP links with blockchain

CANADIAN PACIFIC RAILWAY $409.94, is a buy. The company (Toronto symbol CP; shares outstanding: 134.5 million; Market cap: $56.7 billion; Rating: Above Average; Dividend yield: 0.9%) has formally joined TradeLens, a blockchain-based collaboration between IBM and Danish global shipping giant Maersk.
Blockchain is typically associated with… Read More