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.

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Growth Stocks Library Archives
CAE INC. $33 (www.cae.com) is a buy. The U.S. Department of Defense has awarded the company a new contract to help train pilots of the Royal Moroccan Air Force to fly F-16 fighter jets (Morocco recently agreed to acquire 25 of those planes). The contract is worth $42.1 million U.S., which is equal to just 1% of CAE’s annual revenue of $5.0 billion (Canadian). However, deals like this enhance CAE’s reputation and should help it win more contracts. CAE is a buy.

LOBLAW COMPANIES LTD. $62 (www.loblaw.ca) is a buy. Canada’s largest supermarket operator now plans to open 75 new stores in 2026, up from its earlier target of 70.
RESTAURANT BRANDS INTERNATIONAL INC. $107 has gained nearly 30% in the past year. That’s partly due to its international expansion plans, including a new joint venture that will more than double the number of Burger King restaurants in China. The company also plans to open 80 new Tim Hortons outlets in Canada, and renovate 400 existing ones. That will help it compete with Dunkin’ Donuts, which aims to open several hundred stores in the next few years.

These new stores should help lift earnings by 10% in 2026 to $4.05 U.S. a share, and the stock trades at a reasonable 19.1 times that estimate. Higher earnings will also let the company keep raising your dividend—the current annual rate of $2.60 U.S. yields a solid 3.4%.
ATKINSREALIS GROUP INC. $86 is a hold. The engineering company (Toronto symbol ATRL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 160.0 million; Market cap: $13.8 billion; Price-to-sales ratio: 1.2; Dividend yield: 0.1%; TSINetwork Rating: Average; www.atkinsrealis.com) reported 10.0% higher revenue for the second quarter of 2026, to $2.99 billion from $2.72 billion a year earlier. If you factor out acquisitions and currency rates, revenue improved 8.3%. That’s due to new contract wins, particularly at its nuclear power business (22% of total revenue).

Earnings before unusual items rose 12.6%, to $158.7 million from $140.9 million. Due to fewer shares outstanding, per-share earnings gained 19.8%, to $0.97 from $0.81.
BOMBARDIER INC. fell 6% after U.S. President Donald Trump threatened to block sales of the company’s business jets in the U.S. unless it builds them in that country. About half of the company’s sales are to customers in the U.S.

It’s unclear if the President has the legal power to enact a ban. Moreover, Bombardier makes wings and other components at its plants in the U.S. and a ban could hurt their long-term viability. The company also buys aircraft engines from U.S. manufacturers Honeywell Aerospace and GE Aerospace.
LOBLAW COMPANIES, $62.08, is a buy. The retailer (Toronto symbol L; Shares outstanding: 1.2 billion; Market cap: $71.7 billion; TSINetwork Rating: Above Average; Dividend yield: 1.0%; www.loblaw.ca) plans to apply a “T” symbol on shelf labels to mark U.S. products affected by Canada’s retaliatory tariffs. That will help shoppers steer clear of U.S. imports following the Trump administration’s decision to increase tariffs on Canadian goods.

The company removed these labels in the fall of 2025 after the Canadian government ended its counter-tariffs in hopes of securing a new trade deal with the U.S.
METRO INC., $88.82, is a buy. The company (Toronto symbol MRU; Shares o/s: 209.3 million; Market cap: $18.6 billion; TSINetwork Rating: Average; Dividend yield: 1.8%; www.metro.ca) operates 1,012 grocery stores and 635 drugstores, in Quebec, Ontario and New Brunswick.

Metro reported stronger-than-expected sales for its latest quarter. That’s despite a strike at a Quebec warehouse, which began on March 30, 2026, and has disrupted the availability of fresh produce at 350 stores in that province.

QUAKER CHEMICAL CORP. $165 (www.quakerhoughton.com) remains a buy. The company makes specialty chemicals and lubricants for industrial uses. With the October 2026 payment, Quaker will increase your quarterly dividend by 4.3%, to $0.53 from $0.508 a share. The new annual rate of $2.12 yields 1.3%. The company has now raised that annual rate each year for the past 17 years. As well, it has now raised the dividend 50 times since it became a public company in 1972. Quaker Chemical is a buy.
The shares of this chipmaker have jumped over 50% since the start of 2026 on strong demand from the builders of artificial intelligence datacentres. Texas Instruments is also upgrading its own facilities and making acquisitions, which will help drive its growth when the current AI-fuelled demand slows.

TEXAS INSTRUMENTS INC. $262 is a buy for aggressive investors. The company (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing sector; Shares outstanding: 913.2 million; Market cap: $239.3 billion; Price-to-sales ratio: 12.2: Dividend yield: 2.2%; TSINetwork Rating: Average; www.ti.com) makes analog chips, which convert inputs like touch and sound into electronic signals that computers can understand.
ADOBE INC. $273 continues to add artificial intelligence tools to its popular software products, including Adobe Firefly, Firefly Services and Creative Cloud.

The company is now paying an undisclosed amount for Topaz Labs, which makes AI software that sharpens detail, removes noise, restores footage and increases the resolution of photos and video.
BAXTER INTERNATIONAL INC. $27 is a hold. The company (New York symbol BAX; Conservative Growth Portfolio; Manufacturing sector; Shares outstanding: 517.0 million; Market cap: $14.0 billion; Price-to-sales ratio: 1.2; Dividend yield: 0.2%; TSINetwork Rating: Average; www.baxter.com) makes specialized equipment for hospitals, including intensive-care-unit beds and electronic diagnostic systems.

In the second quarter of 2026, sales rose 5.3%, to $2.96 billion from $2.81 billion a year earlier. However, earnings fell by 5.1%, to $0.56 a share from $0.59. That’s mainly due to higher-cost inventories and a change in an accounting policy.