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.
On November 3, 2021, IBM spun off its legacy business focused on helping corporate and government clients manage their datacentres. Investors received one Kyndryl share for every five IBM shares they held.
We still prefer IBM for your new buying, due to its ability to tap… Read More
On October 16, 2023, the old NCR Corp. (New York symbol NCR) completed its plan to split itself into two separate firms. One (called NCR Atleos) focuses on ATMs, and the other (called NCR Voyix) focuses on digital commerce businesses.
Investors received one share of NCR… Read More
The coronavirus pandemic forced the cancellation of most vacation plans. However, the reopening of the economy has spurred strong demand for travel, and both Wyndham, and Travel + Leisure should benefit from that surge. We see each as a buy.
WYNDHAM HOTELS & RESORTS, $78.26, is… Read More
We like Warner Music’s competitive prospects in its niche market—and a big French acquisition would just add to its attractive outlook.
WARNER MUSIC GROUP, $33.20, is a buy. The company (Nasdaq symbol WMG; TSINetwork Rating: Average) (www.wmg.com; Shares outstanding: 515.7 million; Market cap: $17.6 billion; Dividend yield: 2.1%) recently… Read More
Long-time readers know that we aim to keep you informed of important news about the stocks we cover. That means highlighting developments and plans that promise to bolster investor gains. Here are two buys that stand out this month:
ACI WORLDWIDE, $31.73, is a buy. The firm… Read More
CHIPOTLE MEXICAN GRILL, $2,722.69, is a buy. The company (New York symbol CMG; TSINetwork Rating: Extra Risk) (Shares outstanding: 27.4 million; Market cap: $74.6 billion; No divid.) is now rolling out new benefits aimed to appeal to its Gen-Z labour pool, which accounts for more than 73% of its… Read More
During the pandemic, both Domino’s Pizza and Texas Roadhouse implemented savvy strategies to support their businesses. Now, going forward, we think each is well-positioned to capitalize on its popular offerings to keep attracting customers. Each stock also remains a buy.
DOMINO’S PIZZA, $450.97 (New York symbol DPZ;… 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:
BRILLIANT EARTH, $2.56, (Nasdaq symbol BRLT; TSI Rating: Extra Risk) (Shares o/s:… Read More
MP MATERIALS, $14.05, is still a buy. The company (New York symbol MP; TSINetwork Rating: Extra Risk) (www.mpmaterials.com; Shares o/s: 178.1 million; Market cap: $2.6 billion; No divids.) saw its revenue fall 55.8% in the quarter ended December 31, 2023, to $41.2 million from $93.2 million a year… Read More
Corteva shares offer investors a number of pluses: Not only is the company at the forefront of key agricultural trends, the stock is a spinoff. Over the years, we’ve found that spinoffs are about as close as you can get to a sure thing in… Read More
DraftKings keeps making the right moves to remain the dominant player in the expanding U.S. sports-betting market. It is now adding another U.S. state to its online sportsbook markets.
DRAFTKINGS INC., $42.24, is a buy. The company (Nasdaq symbol DKNG; TSINetwork Rating: Extra Risk) (Shares outstanding: 841.7 million; Market cap:… Read More
ABBVIE INC., $179.86, is a buy. The company (New York symbol ABBV; TSINetwork Rating: Above Average) (www.abbvie.com; Shares outstanding: 1.8 billion; Market cap: $319.6 billion; Dividend yield: 3.5%) continues to hit new, all-time highs—and the stock is now up 84.1% since we first recommended it in our August… Read More
Broadridge profits from its recurring fee-based revenue from long-term client contracts and its leading position in proxy and other investor communication services. Its dominance in providing a wide range of back-office services, plus its high-quality clientele, also helps cut its risk. The company is now… Read More
NUTRIEN LTD. $71 is a buy. The company (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 494.5 million; Market cap: $35.1 billion; Price-to-sales ratio: 0.9; Dividend yield: 4.1%; TSINetwork Rating: Average; www.nutrien.com) is the world’s largest producer of potash, nitrogen (made from natural gas) and phosphate… Read More
SNC-LAVALIN GROUP INC. $56 is still a hold. The engineering company (Toronto symbol ATRL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 175.6 million; Market cap: $9.8 billion; Price-to-sales ratio: 1.1; Dividend yield: 0.1%; TSINetwork Rating: Average; www.atkinsrealis.com) is now operating as AtkinsRéalis. The change is part… Read More
COLLIERS INTERNATIONAL GROUP INC. $158 is a buy for aggressive investors. This company (Toronto symbol CIGI; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 48.7 million; Market cap: $7.7 billion; Price-to-sales ratio: 1.3; Dividend yield: 0.3%; TSINetwork Rating: Extra Risk; www.colliers.com) offers a range of services, including… Read More
The shares of these two aerospace firms are down since the start of 2024, as investors worry about the impact less-profitable products will have on their earnings. We still prefer CAE for your new buying, as it’s in a better position to rebound as travel… Read More
Saputo has struggled in the past few years, as consumers shift away from dairy products to non-dairy, plant-based milks. In response, the company has added new products, such as goat cheese. Saputo is also in the midst of a major plan to improve its efficiency,… Read More
CGI INC. $156 is your #1 Aggressive Buy for 2024. The company (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 231.3 million; Market cap: $36.1 billion; Price-to-sales ratio: 2.6; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) is Canada’s largest provider of computer-outsourcing services… Read More
RESTAURANT BRANDS INTERNATIONAL INC. $110 is a buy for aggressive investors. The fast-food operator (Toronto symbol QSR, Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 452.0 million; Market cap: $49.7 billion; Price-to-sales ratio: 5.2; Dividend yield: 2.9%; TSINetwork Rating: Average; www.rbi.com) has 31,079 outlets in over 100 countries,… Read More