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

WW’s membership flourishes again

WEIGHT WATCHERS INTERNATIONAL $28.94 (Nasdaq symbol WW; TSINetwork Rating: Extra Risk) (212-589-2700; www.ww.com; Shares o/s: 67.0 million; Market cap: $2.0 billion; No dividends paid) has expanded its weight-loss services to include “Wellness that works” programs. The move reflects the company’s goal of promoting healthy living,… Read More

Couche-Tard builds niche

ALIMENTATION COUCHE-TARD $81.15 (Toronto symbol ATD.B: TSINetwork Rating: Average) (1-800-361-2612; www.couchetard.com; Shares outstanding: 564.4 million; Market cap: $45.8 billion; Dividend yield: 0.6%) continues to expand into the market for cannabis. Its latest move is an investment in Fire & Flower Holdings Corp. (symbol FAF on… Read More

Broadridge’s growth plans add appeal

BROADRIDGE FINANCIAL SOLUTIONS $131.27 (New York symbol BR; TSINetwork Rating: Average) (201-714-3000; www.broadridge.com; Shares o/s: 116.1 million; Market cap: $15.0 billion; Dividend yield: 1.7%) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing.

In the quarter ended June 30, 2019,… Read More

SYMC split unlocks value

SYMANTEC CORP. $23.71 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (650-527-8000; www.symantec.com; Shares o/s: 617.5 million; Market cap: $14.7 billion; Divd. yield: 1.3%) jumped as high as $26.07 in early July 2019 on reports that it was in advanced talks with a potential buyer for the… Read More

Tighter focus will benefit Archer Daniels

ARCHER DANIELS MIDLAND CO. $41 (New York symbol ADM; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 559.2 million; Market cap: $22.9 billion; Price-to-sales ratio: 0.4; Divd. yield: 3.4%; TSINetwork Rating: Above Average; www.adm.com) processes corn, wheat, soybeans, flaxseed, peanuts and other crops to make a.. Read More

IPO first step in eventual sale

MCKESSON CORP. $139 (New York symbol MCK; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 186.4 million; Market cap: $25.9 billion; Price-to-sales ratio: 0.1; Dividend yield 1.1%; TSINetwork Rating: Above Average; www.mckesson.com) is the largest wholesale drug distributor in the U.S. and Canada. It also operates drugstores in… Read More

MTS acquisition set to boost earnings

MTS SYSTEMS CORP. $56 (Nasdaq symbol MTSC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 18.0 million; Market cap: $1.0 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.1%; TSINetwork Rating: Average; www.mts.com) paid $80.0 million for E2M Technologies B.V. Based in the Netherlands, E2M makes hydraulic platforms… Read More

Keysight adds a new niche

KEYSIGHT TECHNOLOGIES INC. $94 (New York symbol KEYS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 188.2 million; Market cap: $17.7 billion; Price-to-sales ratio: 4.2; No dividends paid; TSINetwork Rating: Average; www.keysight. com) makes devices for testing electronic equipment.
The company is now offering its automotive customers… Read More

Higher profits despite currency rates

SNAP-ON INC. $156 (New York symbol SNA; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 55.4 million; Market cap: $8.6 billion; Price-to-sales ratio: 2.6; Dividend yield: 2.5%; TSINetwork Rating: Average; www.snapon.com) makes tools for auto mechanics and sells them through a fleet of franchised vans that visit… Read More

Moves should cut Apple’s tariff risk

APPLE INC. $208 (Nasdaq symbol AAPL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.6 billion; Market cap: $956.8 billion; Price-to-sales ratio: 3.7; Dividend yield: 1.5%; TSINetwork Rating: Average; www.apple.com) is now moving some of its production away from China to other countries in Asia to… Read More

UTX moves will spur gains

UNITED TECHNOLOGIES CORP. $135 (New York symbol UTX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 862.3 million; Market cap: $116.4 billion; Price-to-sales ratio: 1.6; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.utc.com) completed its acquisition of Rockwell Collins in November 2018, for $30.6 billion in… Read More

Nissan pursues key deal

NISSAN MOTOR (ADR) $14.09 (Nasdaq symbol NSANY; TSINetwork Rating: Above Average)(310-771-3111; www.nissan-global.com; ADRs o/s: 2.1 billion; Market cap: $28.0 billion; Dividend yield: 6.0%) and its Chinese partner Dongfeng Group are in talks with Didi Chuxing to launch a joint venture to manage car fleets for Didi’s ride-hailing… Read More

ACI expands in Egypt

ACI WORLDWIDE $34.03 (Nasdaq symbol ACIW; TSINetwork Rating: Extra Risk) (402-390-7600; www.aciworldwide.com; Shares outstanding: 110.6 million; Market cap: $3.8 billion; No dividends paid) makes software for processing transactions by credit cards, debit cards, automated teller machines, point-of-sale terminals and interbank systems. Its products also work to cut fraud.
The… Read More

Sierra is the better tech buy right now

ADOBE SYSTEMS INC. $309.39 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408-536-6000; www.adobe.com; Shares outstanding: 485.4 million; Market cap: $148.4 billion; No dividends paid) makes software that lets computer users create, edit and share documents in the popular PDF format.
The company’s decision a few years ago to switch to… Read More

SYMC draws a bid

SYMANTEC CORP. $22.68 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (650-527-8000; www.symantec.com; Shares o/s: 618.2 million; Market cap: $14.6 billion; Divd. yield: 1.3%) jumped to over $26 on recent reports that it was in advanced talks with a potential buyer, Broadcom Inc. (symbol AVGO on Nasdaq).
It now appears that… Read More

Here’s our Pick of the Month

ALIMENTATION COUCHE-TARD $81.45 (Toronto symbol ATD.B: TSINetwork Rating: Average) (1-800-361-2612; www.couchetard.com; Shares outstanding: 564.4 million; Market cap: $46.8 billion; Dividend yield: 0.6%) operates 12,575 convenience stores throughout North America and Europe. It continues to successfully integrate its major acquisitions and to position itself for future gains.
In the three… Read More