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:

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.

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Growth Stocks Library Archives

Growth Stocks

Updating your Aggressive stocks: APA, IDEXX LABORATORIES, RESTAURANT BRANDS INTERNATIONAL

APA CORP. $38 (www.apacorp.com) is a hold. In addition to its oil and natural gas properties in West Texas and the U.K.’s North Sea, APA owns one-third of a joint venture that produces natural gas in Egypt. The company recently announced a new natural gas discovery in Egypt’s Western Desert, which could produce 26 million cubic feet per day. That’s equal to 3% of APA’s gas output. The stock has seen recent gains from the conflict in Iran, but it could give them back when passage through the Strait of Hormuz returns to normal. APA Corp. is a hold.

IDEXX LABORATORIES INC. $578 (www.idexx.com) is still a hold. The company makes equipment that veterinarians use to detect diseases in animals.

1 min read

Pat McKeough

Growth Stocks

Price dip makes Danaher a cheap buy

Danaher’s shares fell recently after it announced a sizeable acquisition. However, the company has a good history of successfully integrating new operations. Moreover, the purchase will quickly add to its earnings, spurring the stock higher in the next few years.

DANAHER CORP. $184 is a buy for aggressive investors. The company (New York symbol DHR; Aggressive Growth Portfolio; Manufacturing & Industry sector; Shares outstanding 707.8 million; Market cap: $130.2 billion; Dividend yield: 0.9%; Price-to-sales ratio: 5.6; TSINetwork Rating: Above Average; www.danaher.com) has more than 15 operating companies that fall into three main categories: Diagnostics (41%, 47%) makes analytical equipment and consumable supplies that hospitals and medical labs use to detect and identify diseases; Biotechnology (30% of revenue in the latest quarter, 37% of earnings) makes instruments for the testing of new drugs and vaccines; and Life Sciences (29%, 16%) makes equipment that researchers use to study DNA and RNA, proteins and cells.

2 min read

Pat McKeough

Growth Stocks

More Boeing deliveries bodes well

BOEING CO. $221 remains a hold. The aircraft maker (New York symbol BA; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 785.6 million; Market cap: $173.6 billion; Price-to-sales ratio: 1.7; Dividend suspended in June 2020; TSINetwork Rating: Extra Risk; www.boeing.com) delivered 143 commercial jetliners in the first quarter of 2026, up from 130 a year earlier.

That gain reflects the company’s return to normal production levels after it fixed various quality control problems with its 737 Max planes. As a result, Boeing delivered 114 of those jets in the latest quarter compared to the 105 a year earlier. It has also increased production of its larger 787 Dreamliner plane.

1 min read

Pat McKeough

Growth Stocks

Building niche markets remains their focus

eBay split from PayPal in July 2015, with investors receiving one PayPal share for each eBay share they held. Since then the former parent has expanded its online auction business into highly profitable niche markets. That strategy has helped push eBay shares to new highs. PayPal struggled in the aftermath of the pandemic, but its moves to speed up transactions and improve security bode well for investors.

EBAY INC. $106 is a buy. The company (Nasdaq symbol EBAY; Aggressive Growth Portfolio; Finance sector; Shares outstanding: 452.0 million; Market cap: $47.9 billion; Price-to-sales ratio: 4.4; Dividend yield: 1.2%; TSINetwork Rating: Above Average; www.ebay.com) operates e-commerce websites, in over 190 countries.

2 min read

Pat McKeough

Growth Stocks

Yum China still rewarding investors

YUM CHINA HOLDINGS INC. $48 is a buy for aggressive investors. The company (New York symbol YUMC; Aggressive Growth Portfolio, Consumer Sector; Shares o/s: 343.3 million; Market cap: $16.5 billion; Price-to-sales ratio: 1.5; Dividend yield: 2.4%; TSINetwork Rating: Average; www.yumchina.com) is China’s largest fast-food operator with over 18,000 outlets, mainly under the KFC and Pizza Hut banners.

The company has a strong record of rewarding shareholders. Since 2017, it has returned $5.8 billion through dividends and share buybacks.

1 min read

Pat McKeough

Growth Stocks

Becton merges division with Waters

BECTON DICKINSON & CO. $156 is a buy. The medical device maker (New York symbol BDX; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 284.7 million; Market cap: $44.4 billion; Price-to-sales ratio: 2.1; Dividend yield: 2.7%; TSINetwork Rating: Above Average; www.bd.com) has completed its plan to merge its Biosciences and Diagnostic Solutions division with lab equipment maker Waters Corp (New York symbol WAT).

1 min read

Pat McKeough

Growth Stocks

Rising chip costs add risk

APPLE INC. $273 is a hold. The company (Nasdaq symbol AAPL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 14.8 billion; Market cap: $4.0 trillion; Price-to-sales ratio: 9.1; Dividend yield: 0.4%; TSINetwork Rating: Average; www.apple.com) plans to release the higher-priced Pro version of the iPhone 18, its newest model, in September 2026, with the regular version available in early 2027. However, due to rising demand for memory chips from new AI datacentres, Apple is now paying roughly double for those key components.

1 min read

Pat McKeough

Growth Stocks

These techs are embracing an AI future

The rapid emergence of artificial intelligence (AI) technologies has hurt traditional software makers like Adobe. At the same time, AI is helping drive demand for new computer hardware products from HP and HP Enterprise.

Our view is that all three companies here will ultimately thrive as they adapt to overcome AI challenges. For now, however, we feel Adobe is the best pick for your new buying, especially given its now-cheap price.

5 min read

Pat McKeough

Growth Stocks

Here’s our Power Recommendation Portfolio for May 2026

You Can See Our Current Power Recommendations For May 2026 Here.

Understanding our recommendations: Power Buy—These stocks are our top choices for new buying now. We feel each currently offers the best combination of fundamentals (earnings, sales, cash flow and so on) plus external factors (industry trends and the current share price) to give it a chance of above-average gains. Buy—high-quality stocks with strong growth prospects. However, they are likely to grow at a slower rate than our Power Buys. Sell—these are stocks that no longer inspire our confidence. As Power Growth Investor focuses on maximizing profits for aggressive investors, we prefer to sell poorly performing stocks instead of holding them and waiting for a rebound.

1 min read

Pat McKeough

Growth Stocks

We see limited prospects here

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:

ALGOMA STEEL, $6.76, (Toronto symbol ASTL; TSINetwork Rating: Extra Risk) (www.algoma.com; Shares o/s: 104.9 million; Market cap: $709.4 million; Dividend suspended in 2025) produces steel plate and rolled steel coils used in the construction, energy, manufacturing and pipe industries.

1 min read

Pat McKeough

Testimonials

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Chuck Chakrapani, PhD
Investors Association of Canada
The older I get the better dividends look. For retirees and would-be retirees who want to sleep at night, I can’t think of a better source of information on reliable growing dividend income than Pat McKeough’s newsletter, Dividend Advisor.

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Financial Post Columnist
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I appreciate the 25 years of above market returns I received by following your advice. at least 95% of my investment decisions were based on TSI recommendations.

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Subscriber since 1996. Inner Circle Member Since 2006
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Browse Premium Topics

Cannabis

Spinoffs

One of the ways a company can try to unlock its own hidden value is by creating a separate company out of a corporate subsidiary. The parent company can either sell stock in the new company to the public, or spin it off—hand the stock out to its own investors.

Dividend Stocks

Dividend stocks make cash payouts that serve as a way for companies to share the wealth they’ve accumulated. These payouts are drawn from earnings and cash flow and paid to the shareholders of the company. Typically, these dividends are paid quarterly, although they may be paid annually or even monthly as well.

ETFs

What are ETFs?

ETF is an acronym for exchange traded fund. These exchange traded funds are used to track indexes as closely as possible, since investors cannot actually buy an index outright.

Value Stocks

What are value stocks?

One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

Blue Chip Stocks

Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects. These are companies that also have sound management that should be able to make the right moves to keep competing successfully in a changing marketplace.

Penny Stocks

A penny stock in general trades for under five dollars a share, and as the name implies, sometimes for pennies. Most of the time they’re young companies, or start-ups in speculative markets like mining or technology.

Growth Stocks

Wealth Management

Wealth management is the practice of putting your savings to work so that it continues to grow over your lifetime and will also benefit your heirs. Wealth management encompasses many different areas of investing like long term investment planning and retirement planning.

Mining Stocks

Mining stocks are investments in companies that produce or explore for minerals. Some of these minerals include uranium, coal, molybdenum (which is used in steelmaking), copper, silver and gold. They are affected by fluctuating commodity prices in addition to their own business and operating risks.

How To Invest

Pat McKeough has been making investing for beginners simple—and profitable—by helping investors make big gains for more than 25 years. His advice to beginning investors is the same as it is for all investors: buy high-quality, mostly dividend paying stocks (or ETFs that hold these stocks) and evenly spread your investments over the five main economic sectors (Resources, Manufacturing, Finance, Utilities and Consumer). Pat also believes investors should avoid stocks in the broker/media limelight and focus on those with hidden or little-noticed assets.

Energy Stocks

What are energy stocks?

Businesses that work in the extraction, refining and delivery of energy sources such as natural gas, oil, uranium and coal, are considered energy stocks.