Growth Stocks

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.

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Growth Stocks Library Archives
LOBLAW COMPANIES, $62.20, is a buy. The retailer (Toronto symbol L; Shares o/s: 1.2 billion; Market cap: $71.9 billion; TSINetwork Rating: Above Average; Dividend yield: 1.0%; www.loblaw.ca) operates 1,140 supermarkets (including 569 owned by franchisees) under several banners, including Loblaws, Zehrs, Provigo, Real Canadian Superstore and No Frills. It also operates 1,383 Shoppers Drug Mart stores across Canada.
CANADIAN PACIFIC KANSAS CITY, $121.20, is a buy. The company (Toronto symbol CP; shares o/s: 879.1 million; Market cap: $106.5 billion; Rating: Above Average; Yield: 0.9%) continues to improve its efficiency, which is helping it cope with the current uncertainty over tariffs.

Notably, CPKC has developed a new system to speed up the transport of agricultural products and meat from Mexico to the U.S.
METRO INC., $89.95, is a buy. The company (Toronto symbol MRU; Shares outstanding: 209.3 million; Market cap: $18.8 billion; TSINetwork Rating: Average; Dividend yield: 1.8%; metro.ca) reports that its striking warehouse workers have voted to accept a new contract, ending a job action well into its sixth month.
PEPSICO INC. $130 (www.pepsico.com) is still a hold. The stock is down 10% since the start of 2026 for several reasons. Those include new GLP-1 weight loss drugs, which are hurting demand for its sodas and snack foods. U.S. tariffs on imported aluminum is also raising its packaging costs. Despite these pressures, the company raised your quarterly dividend in June 2026 by 4.0%. The new annual rate of $5.92 a share yields 4.6%. PepsiCo is a hold.
INTERNATIONAL FLAVORS & FRAGRANCES INC. $86 is a buy. The company continues to streamline its portfolio of chemical compounds that improve the taste of food and the smell of consumer products. It’s now selling its portfolio of botanical extracts, vitamins and minerals, and food enhancements to ingredient maker SuanNutra for an undisclosed amount. It expects to complete the sale by the end of 2026.

The cash will let it keep paying down its long-term debt of $4.74 billion (as of June 30, 2026), which is equal to 22% of its market cap.
WARNER BROS. DISCOVERY INC. $31 remains a hold. The company (Nasdaq symbol WBD; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 2.5 billion; Market cap: $77.5 billion; Price-to-sales ratio: 2.2; No dividend paid; TSINetwork Rating: Average; www.wbd.com) owns the Warner Bros. studio (TV shows and movies) as well as cable TV channels CNN, HBO, TNT, TBS, Cartoon Network, Discovery and HGTV.

WBD recently accepted a $31.00-a-share takeover offer from Paramount Skydance Corp. (Nasdaq symbol PSKY), which owns the CBS TV network and Paramount studios.
STATE STREET CORP. $180 is a buy. This financial services provider continues to benefit from rising stock markets, which lifted its assets under custody and administration to a record $57.9 trillion as of June 30, 2026; its fee income rises and falls with the value of these holdings.

In the second quarter of 2026, State Street’s revenue rose 17.4%, to $4.05 billion from $3.45 billion a year earlier.
Broadridge and Fair Isaac have dropped from their recent peaks, mainly due to concerns that artificial intelligence (AI) will hurt demand for their services. However, both firms are actively adding AI io their own products, which helps protect their leading positions in their niche markets.

BROADRIDGE FINANCIAL SOLUTIONS INC. $163 is a buy for aggressive investors. The company (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 114.0 million; Market cap: $18.6 billion; Price-to-sales ratio: 2.6; Dividend yield: 2.7%; TSINetwork Rating: Average; www.broadridge.com) processes and distributes proxies and regulatory filings for publicly traded companies and mutual funds, both electronically and by surface mail.
3M COMPANY $170 is a buy. The company, which currently makes over 60,000 industrial and consumer items, has a long history of developing hugely successful new products, including Post-It Notes, Scotch Tape and N95 respirator masks.

3M aims to launch over 350 new products in 2026, compared to 284 in 2025. It expects new products will contribute 20% of its total sales in 2027, up from just 11% in 2024.
Microsoft continues to spend heavily on new datacentres to handle rising demand for its artificial intelligence (AI) software services.

However, concerns over the size of these outlays have weighed on Microsoft’s shares in the past few months. As well, leading AI developers OpenAI and Anthropic may slow the rollout of their new platforms. That could hurt demand for AI services. (Note, the company owns equity stakes in both these firms.)