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.

Read More

Growth Stocks Library Archives

Look past Cintas’s high multiple

Cintas’s shares have gained 15% since the start of 2022 as the re-opening of the economy continues to spur demand for its uniform rentals and other business services. While the stock looks expensive in relation to its earnings, its high market share and cost controls… Read More

Investors will benefit from breakup

NCR CORP. $23 is still a buy for aggressive investors. The company (New York symbol NCR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 137.4 million; Market cap: $3.2 billion; Price-to-sales ratio: 0.4; No dividend paid; TSINetwork Rating: Average; www.ncr.com) plans to separate into two publicly traded… Read More

Use these updates to enhance your returns

TENNANT CO. $63 is a hold. The company (New York symbol TNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 18.6 million; Market cap: $1.2 billion; Price-to-sales ratio: 1.1; Dividend yield: 1.7%; TSINetwork Rating: Average; www.tennantco.com) makes industrial floor and street-cleaning equipment, including scrubbers, sweepers and polishers.
In… Read More

New stores spur Yum China

YUM CHINA HOLDINGS INC. $52 is a buy for aggressive investors. The company (New York symbol YUMC; Consumer Sector; Shares outstanding: 421.4 million; Market cap: $21.9 billion; Price-to-sales ratio: 2.3; Dividend yield: 0.9%; TSINetwork Rating: Average; www.yumchina.com) is China’s largest fast-food operator with 12,409 outlets, mainly under the… Read More

Shortages hurt earnings outlook

SONY GROUP CORP. ADRs $82 is a hold. The Japanese conglomerate (New York symbol SONY; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.3 billion; Market cap: $106.6 billion; Price-to-sales ratio: 1.3; Dividend yield: 0.3%; TSINetwork Rating: Average; www.sony.com) reported 9.1% higher sales in its fiscal 2023… Read More

Power division weighs on GE

GENERAL ELECTRIC CO. $88 remains a hold. The conglomerate (New York symbol GE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.1 billion; Market cap: $96.8 billion; Price-to-sales ratio: 1.3; Dividend yield: 0.4%; TSINetwork Rating: Average; www.ge.com) plans to break itself up into three separate companies: GE… Read More

Keysight continues to shine

KEYSIGHT TECHNOLOGIES INC. $176 is a buy for aggressive investors. The company (New York symbol KEYS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 178.5 million; Market cap: $31.4 billion; Price-to-sales ratio: 5.9; No dividend paid; TSINetwork Rating: Average; www.keysight.com) makes an array of devices for testing… Read More

Savvy strategies power their sales gains

Both DraftKings and Warner Music soared during the pandemic but have now given up most of those gains. We still like their competitive business models, which remain intact, and each stock is especially attractive for new buying right now.
DRAFTKINGS INC., $14.86, is a buy. The company (Nasdaq symbol… Read More

Here are updates on two of your buys

Long-time readers know that we keep you informed of important news about the stocks we cover. That means highlighting developments and plans that promise to brighten prospects for investors. Here are two buys that stand out this month:
ELECTRONIC ARTS, $129.34, is a buy. The company (Nasdaq… Read More

Merck donates its ebola vaccine

MERCK & CO. INC., $99.93, is a #1 buy for 2022. The drugmaker (New York symbol MRK; TSINetwork Rating: Above Average) (www.merck.com; Shares outstanding: 2.5 billion; Market cap: $252.5 billion; Dividend yield: 2.8%) now plans to produce and donate its investigational Sudan ebola virus vaccine to a global non-profit… Read More

Here’s a stock you should avoid

The plunge for tech/platform stocks since the start of this year has hit both high-growth stocks with strong prospects as well as others with weaker outlooks. You should remain wary of that last group despite any broker/media praise for their business models. Here’s an example… Read More

TMO adds a diagnostics leader

THERMO FISHER SCIENTIFIC INC., $536.01, is a buy. The company (New York symbol TMO; TSINetwork Rating: Average) thermofisher.com; Shares o/s: 392.2 million; Market cap: $214.2 billion; Dividend yield: 0.2%) recently bought The Binding Site Group, a global leader in specialty diagnostics, for $2.6 billion.
Serving clinicians and laboratory professionals worldwide,… Read More

Couche-Tard expands into new growth areas

Alimentation Couche-Tard not only adapted to the pandemic, it thrived—and the shares are now trading at all-time highs. Meanwhile, the company is entering a couple of new markets. For one, it’s rolling out electric vehicle (EV) chargers at its U.S. and Canadian stores. And second,… Read More

MP taps rare earths

MP MATERIALS CORP., $33.37, is a buy. The company (New York symbol MP; TSINetwork Rating: Extra Risk) (www.mpmaterials.com; Shares outstanding: 177.5 million; Market cap: $6.3 billion; No dividends paid) is the owner and operator of the Mountain Pass mine, the only significant rare-earth commercial mining and processing site… Read More

Steris sells into attractive niches

The COVID-19 pandemic resulted in short-term disruptions to elective medical procedures, and so demand for Steris’s hospital equipment. But going forward, it remains in a great position to profit from the favourable long-term trend of an aging population. And with two key acquisitions, it has… Read More

Buy these two for their strong brands

These top providers of real estate services continue to rebound from their 2020 lows as businesses and individuals adjust their properties for post-pandemic uses. We like the outlook for both, particularly as their strong market position and brands make it easier for them to pass… Read More

New tax could hurt jet demand

BOMBARDIER INC. remains a hold. The company (Toronto symbols BBD.A $42 and BBD.B $42; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 93.9 million; Market cap: $3.9 billion; Price-to-sales ratio: 0.5; Dividend suspended in February 2015; TSINetwork Rating: Speculative; www.bombardier.com) delivered 25 business jets in the quarter… Read More

Nutrien still plans to expand output

NUTRIEN LTD. $101 is a buy. The company (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 538.9 million; Market cap: $54.4 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.5%; TSINetwork Rating: Average; www.nutrien.com) is the world’s largest producer of agricultural fertilizers: it ships about 27 million tonnes… Read More

Big earnings jump for Finning

FINNING INTERNATIONAL INC. $31 is a buy. The company (Toronto symbol FTT; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 153.7 million; Market cap: $4.7 billion; Price-to-sales ratio: 0.6; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www.finning.com) sells and services Caterpillar-brand heavy equipment in Western Canada, South… Read More