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
Deal with cannabis producer creates new buzz for liquor operator
With its growth stalled in Alberta and an activist investor exerting pressure, Liquor Stores NA accepted a sizeable investment from Aurora Cannabis. The shares initially shot up in the wake of the marijuana deal, but there are still a number of challenges facing this big liquor store operator.
4 min read
Pat McKeough
Growth Stocks
Online retailers not allowing this stock a good night’s sleep
After several years of strong growth, Sleep Country Canada suffered a setback. Expensive advertising that failed to deliver and competition from online retailers hurt its earnings, but the company aims to recover, helped in part by the demise of Sears Canada.
4 min read
Pat McKeough
Growth Stocks
Flexible firewall is the secret of this tech stock’s growth
Thanks to a system that lets companies repel cyberattacks without a blanket ban, Palo Alto Networks has a wide international clientele. Research spending and key acquisitions keep the company growing, but the stock is currently very expensive.
3 min read
Pat McKeough
Growth Stocks
What is EBITDA and Why is it Rarely An Issue for Conservative Investors
Ebitda stands for “earnings before interest, taxes, depreciation and amortization,” and it looks at the cash an underlying business can make. However, it has its limitations.
4 min read
Scott Clayton
Growth Stocks
Cloud computing helps this stock do more than pay the cheques
Between its payroll services and cloud-based human resource system for smaller U.S. businesses, Paychex Inc. keeps its customers coming back.
3 min read
Pat McKeough
Growth Stocks
Even NAFTA may not slow this Canadian growth stock
North America’s largest transit bus maker, Canada’s New Flyer Industries has rolled to strong growth, but could be slowed by NAFTA negotiations.
3 min read
Pat McKeough
Growth Stocks
What’s a Hedge Fund? It’s a type of investment product that entails a lot of risk.
What’s a hedge fund and how could it damage your portfolio? For starters, it can involve speculative strategies like short-selling, derivatives and margin trading.
4 min read
Scott Clayton
Growth Stocks
Canadian stock counts on U.S. hospitals for healthy dividend
Canada’s Medical Facilities Corp. has a niche in the U.S., a high dividend yield and a tangled web of American health care regulations to deal with.
3 min read
Pat McKeough
Growth Stocks
Canadian pharma stock faces big test in its quest for success
Canadian pharma stock Aurinia Pharmaceuticals could fill an important role in the fight against serious diseases if it passes rigorous tests.
3 min read
Pat McKeough
Growth Stocks
NAFTA changes could chip away at this Canadian stock’s niche market
Stella-Jones is the clear leader in its niche market built on railway ties and utility poles, but NAFTA uncertainty and growth by acquisition both add risk.
3 min read
Pat McKeough
Load More