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

Here’s our Power Recommendation Portfolio for August 2026

You Can See Our Current Power Recommendations For August 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

Tap these leaders for travel’s bright future

Current economic uncertainty and lower consumer confidence have slowed the rise of both Wyndham, and Travel + Leisure. But we believe each company still have exceptional prospects. What’s more, each is a market leader, which cuts your investment risk.

WYNDHAM HOTELS & RESORTS, $75.68, is a buy. The company (New York symbol WH; TSINetwork Rating: Extra Risk) (www.wyndhamhotels.com; Shares o/s: 74.9 million; Market cap: $5.7 billion; Dividend yield: 2.2%) is the world’s largest hotel franchiser, with 868,900 rooms spread across 8,300 hotels, with 25 brands in 100 countries.

2 min read

Pat McKeough

Growth Stocks

ResMed sharpens its focus with MatrixCare sale

The sale of MatrixCare lets ResMed dedicate its focus to its sleep health-related business interests.

The move reflects its 2030 strategy, which is focused on “high-growth, scalable opportunities” in sleep health, breathing health and connected home-based healthcare.

1 min read

Pat McKeough

Growth Stocks

Adobe adds AI expertise with Topaz

ADOBE INC., $218.36, is now buying Topaz Labs, an AI company known for image and video enhancement tools. Topaz Labs builds AI models that sharpen detail, remove noise, restore footage and increase resolution across photos and video.

Software giant Adobe will add Topaz’s technology across Adobe Firefly, Firefly Services and Creative Cloud apps, giving creators, photographers, video professionals and enterprises more tools to improve real-world and AI-generated content.

1 min read

Pat McKeough

Growth Stocks

R&D spending sets them up for future gains

PagerDuty and Twilio were well positioned to gain during the pandemic, but since early 2021 they have dropped along with many other tech/platform stocks. Still, we think both have room to rebound as they continue to experience expanding demand. Both are buys.

PAGERDUTY INC., $8.82, is a buy. The company (New York symbol PD; TSINetwork Rating: Extra Risk) (pagerduty.com; Shares o/s: 77.1 million; Market cap: $680.2 million; No divd.) operates a platform that collects real-time data from software systems and devices and then notifies its IT customers of incidents that could harm operations.

2 min read

Pat McKeough

Growth Stocks

This stock offers limited prospects

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:

CANADA GOOSE HOLDINGS, $13.70, (Toronto symbol GOOS; TSINetwork Rating: Extra Risk) (www.canadagoose.com; Shares outstanding: 97.7 million; Market cap: $1.3 million; No dividends paid) is a Toronto-based luxury apparel manufacturer known for its iconic winter jackets. Canada Goose had 88 retail stores as of March 29, 2026.

1 min read

Pat McKeough

Growth Stocks

They are fighting AI competition with AI

Artificial intelligence (AI) is an example of an investment idea that could boost your investment returns or, more likely, end up costing you money. All in all, we think that the biggest, surest gains from AI will come from investing in established businesses that are already profitable and growing, and that can gain all the more by applying AI to their operations.

Here are two companies that are already profitably taking advantage of AI, and they should be among the leaders in the push to extend AI’s use.

1 min read

Pat McKeough

Growth Stocks

Chipotle expands to Mexico

CHIPOTLE MEXICAN GRILL, $32.20, has opened its first restaurant in Mexico. The store is in high-income San Pedro Garza García, Nuevo León, part of the Monterrey metropolitan area.

Chipotle plans to open more restaurants in the state and expand into Mexico City in 2027. The move adds credibility for its menu.

1 min read

Pat McKeough

Growth Stocks

Calian profits in defence, space and health

Calian continues to benefit from strong demand in defence and space sector, arising from increased government spending in Canada, the U.S. and globally.

Continuing growth in healthcare services also boosts results. Meanwhile, a healthy contract backlog and strong balance sheet will support additional savvy acquisitions. We think this Power Buy is poised to move even higher for you.

2 min read

Pat McKeough

Growth Stocks

Couche-Tard still has room to rise

Alimentation Couche-Tard soared to new all-time highs for our subscribers after reporting strong results in its latest quarter. It’s poised for continued growth from its traditional business but also any increased EV demand spurred by higher oil prices. Couche-Tard is a Power Buy.

ALIMENTATION COUCHE-TARD, $89.23, is a buy. This retailer (Toronto symbol ATD; TSINetwork Rating: Average) (couchetard.com; Shares o/s: 918.0 million; Market cap: $81.9 billion; Yield: 1.0%) operates 14,563 convenience stores, mostly in North America and Europe.

2 min read

Pat McKeough

Testimonials

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Chuck Chakrapani, PhD
Investors Association of Canada
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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
The newsletters I receive in Inner Circle Pro are fantastic! I have been following Pat’s advice for years and everything he has said has been amazing. His commentaries are brilliant, insightful, educational, rational and balanced. My returns are almost double the TSE and I have referred many of my friends who have switched over to your services.

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Inner Circle Pro subscriber

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.