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 Close
Growth Stocks
Tiffany & Co. continues to sparkle for international consumers
One of the leading luxury brands in the world, Tiffany & Co. continues to grow internationally. It has an escalating presence in the rich Asian market. And its new CEO is focused on attracting younger consumers with new designs and online shopping. The company also benefits from high and rising profit margins as well as a sound balance sheet.
3 min read
Pat McKeough
Growth Stocks
Rewards, risks of satellite technology key to Maxar Technologies
Known for its satellite technology, Maxar Technologies was previously named MacDonald Dettwiler and Associates. In 2017 it acquired a Colorado firm that specializes in high-resolution imagery and has a list of notable clients. That helped Maxar’s earnings jump, but such a large acquisition adds risk, as does the company’s reliance on government spending, and its high debt.
3 min read
Pat McKeough
Growth Stocks
Top Growing Stocks Can Hurt Your Portfolio Unless You Follow a Sound Strategy
Many top growing stocks look appealing at first, but once you dig deeper into your analysis, a large number turn out to be speculative and entail higher levels of risk than expected.
4 min read
Scott Clayton
Growth Stocks
Vail Resorts aims to offset weather risk in growing ski resort empire
One of the largest mountain resort companies in the world, Vail Resorts continues to grow. In 2017 it added Whistler Blackcomb, Canada’s largest ski resort, to its expanding portfolio of properties. Despite lower snowfalls, revenue and earnings are up thanks to success in selling season passes. Geographical diversion and high barriers to entry also help protect the company from weather risk.
4 min read
Pat McKeough
Growth Stocks
Acquisitions make the packaging more attractive for CCL Industries
A major international packaging firm, Canada’s CCL Industries has accelerated its growth through acquisitions, making nine since the start of 2016 alone. The company’s revenues and earnings have gained steadily in recent years, and it raised its dividend this year. The company also executed a five-for-one share split in the past year.
4 min read
Pat McKeough
Growth Stocks
55 straight years of rising dividends for Johnson & Johnson
One of the best known brands in North America. Johnson & Johnson continues to be a profitable business and has raised its dividend for each of the past 55 years. The company gets almost half of its revenue from its pharmaceutical business and recently added to that business with a European acquisition. Although drug stocks entail risk from high costs and competition, the outlook for this stock remains positive.
3 min read
Pat McKeough
Growth Stocks
High yield for Superior Plus could be undercut by low gas prices
The shares of Superior Plus Corp. yield a high 5.8% and trade at a low multiple to forecast cash flow, but the company faces risks. Demand for the company’s propane tends to shrink when lower natural gas prices encourage consumers to switch. Superior Plus has seen its revenues and earnings rise, but it also has high debt.
3 min read
Pat McKeough
Growth Stocks
Stocks Expected to Rise: How to pick the ones with the best prospects
It’s important to take a close and critical look at stocks expected to rise. There could be hidden dangers, but also hidden opportunities
4 min read
Scott Clayton
Growth Stocks
U.S. trade talks could check growth for Exco Technologies
Canadian auto parts specialist Exco Technologies has grown by acquisition and has the strong balance sheet to continue expanding. The company’s growth depends on automobile sales in North American and vehicle production in Europe—and could be hindered if trade talks initiated by the Trump administration don’t go Canada’s way.
3 min read
Pat McKeough
Growth Stocks
Long-Term Investment Options: Choosing Wisely Limits Worry
If you choose long-term investment options that have a history of success, earnings, and dividends, you can avoid worrying about things you can’t control
4 min read
Scott Clayton
Load More