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

New investments will pay off

BROADRIDGE FINANCIAL SOLUTIONS INC. $136 is a buy. The company (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares o/s: 116.8 million; Market cap: $15.9 billion; Price-to-sales ratio: 2.9; Divd. yield: 1.9%; TSINetwork Rating: Average; www.broadridge.com) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing.

In its fiscal 2022 third quarter, ended March 31, 2022, revenue rose 10.4%, to $1.53 billion from $1.39 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

Here are three key updates on your portfolio

ALCOA CORP. $49 is a still buy for the Resources portion of your portfolio. The company (New York symbol AA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 184.5 million; Market cap: $9.0 billion; Price-to-sales ratio: 0.8; Dividend yield: 0.8%; TSINetwork Rating: Extra Risk; www.alcoa.com) is a leading producer of bauxite ore with mines in Australia, Brazil, Guinea (West Africa) and Saudi Arabia....

2 min read

Pat McKeough

Growth Stocks

eBay diversifies with toymaker

EBAY INC. $43 is still a buy. The company (Nasdaq symbol EBAY; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 626.0 million; Market cap: $26.9 billion; Price to-sales ratio: 2.6; Dividend yield: 2.0%; TSINetwork Rating: Above Average; www.ebay.com) operates e-commerce websites, in over 190 countries, where sellers pay fees to auction items or offer them at fixed prices.

The company is part of an investment consortium that has agreed to buy 25% of Funko Inc....

1 min read

Pat McKeough

Growth Stocks

New firms show the power of brands

New firms spun off from larger companies sometimes rise quickly, like Carrier and Otis. That’s probably because investors are familiar with their products and like their prospects. However, others such as Viatris and Kyndryl, are more obscure and need a few years to build a following....

5 min read

Pat McKeough

Growth Stocks

Low p/e for a top chipmaker

TEXAS INSTRUMENTS INC. $153 is a buy. The company (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 923.6 million; Market cap: $141.3 billion; Price-to-sales ratio: 7.6; Dividend yield: 3.0%; TSINetwork Rating: Average; www.ti.com) is a top maker of analog chips, which convert inputs like touch, sound and pressure into electronic signals that computers can understand.

In the quarter ended March 31, 2022, Texas Instruments’ revenue increased 14.4%, to $4.91 billion from $4.29 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

Cost savings are WBD’s top priority

WARNER BROS. DISCOVERY INC. $14 is a hold. The company (Nasadq symbol WBD; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 662.4 million; Market cap: $9.3 billion; Price-to-sales ratio: 0.7; No dividend paid; TSINetwork Rating: Average; www.wbd.com) is a leading producer of entertainment, sports and information programming....

1 min read

Pat McKeough

Growth Stocks

Travel rebound will power their future gains

The coronavirus pandemic forced the cancellation of most vacation plans. However, the reopening of the economy is spurring strong demand for travel—and both Wyndham, and Travel + Leisure should benefit from that surge. We see both as buys.

WYNDHAM HOTELS & RESORTS, $71.02, is suitable for your new buying. The company (New York symbol WH; TSINetwork Rating: Extra Risk) (www.wyndhamhotels.com; Shares outstanding: 92.1 million; Market cap: $6.5 billion; Dividend yield: 1.8%) is the world’s largest hotel franchiser, with 813,000 rooms spread across 8,900 hotels in 95 countries....

2 min read

Pat McKeough

Growth Stocks

Here are updates on two of our buys

Long-time readers know that we keep you informed of important news about the stocks we cover. That means highlighting developments and plans that promise to brighten prospects for investors. Here are two buys that stand out this month:

CALIAN GROUP, $62.27, is a buy. The stock (Toronto symbol CGY; TSINetwork Rating: Extra Risk) (calian.com; Shares o/s: 11.3 million; Market cap: $710.2 million; Dividend yield: 1.8%) has just won a contract with the Royal Canadian Air Force (RCAF) to develop e-learning curriculum....

2 min read

Pat McKeough

Growth Stocks

Takeover potential adds appeal

ELECTRONIC ARTS, $129.26, is a buy. The company (Nasdaq symbol EA; TSINetwork Rating: Extra Risk) (www.ea.com; Shares o/s: 279.9 million; Market cap: $35.7 billion; Yield: 0.6%) is now reportedly pursuing a sale or merger and has spoken to numerous interested parties....

1 min read

Pat McKeough

Growth Stocks

We now see Stitch Fix as a sell

STITCH FIX, $6.81, is a sell. The company (Nasdaq symbol SFIX; TSINetwork Rating: Speculative) (www.stitchfix.com; Shares outstanding: 82.8 million; Market cap: $672.8 million; No dividends paid) began as an online stylist providing subscribers with regular shipments of clothes, shoes and accessories, all tailored to their tastes using artificial intelligence.

However, growth in that market has slowed significantly....

1 min read

Pat McKeough

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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.