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

Better efficiency spurs its earnings

TOROMONT INDUSTRIES LTD. $112 is a buy. The company (Toronto symbol TIH; Aggressive Growth Portfolio; Manufacturing sector; Shares outstanding: 82.4 million; Market cap: $9.2 billion; Price-to-sales ratio: 2.3; Dividend yield: 1.4%; TSINetwork Rating: Extra Risk; www.toromont.com) distributes a broad range of industrial equipment (such as bulldozers, backhoe loaders and drills), including Caterpillar machinery, in eastern Canada and the Eastern Seaboard of the U.S....

1 min read

Pat McKeough

Growth Stocks

Stantec makes its acquisitions work

STANTEC INC. $70 is a buy. The engineering firm (Toronto symbol STN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 111.1 million; Market cap: $7.8 billion; Price-to-sales ratio: 1.6; Dividend yield: 1.0%; TSINetwork Rating: Extra Risk; www.stantec.com) is now buying Cox|McLain Environmental Consulting, Inc....

1 min read

Pat McKeough

Growth Stocks

Updating your Aggressive stocks: Teradata, Diebold Nixdorf, and State Street

TERADATA CORP. $40 (www.teradata.com) is a hold. The company makes computers and software to capture and store large amounts of data for individual businesses—its clients. Teradata continues to benefit from its new strategy of selling products as cloud-based subscriptions, instead of one-time software purchases....

1 min read

Pat McKeough

Growth Stocks

T. Rowe’s new acquisition will pay off

T. ROWE PRICE GROUP INC. $157 is a buy. The seller of mutual funds and wealth management services (Nasdaq symbol TROW; Aggressive Growth and Income Portfolios, Finance sector; Shares outstanding: 226.9 million; Market cap: $35.6 billion; Price-to-sales ratio: 4.9; Dividend yield: 2.8%; TSINetwork Rating: Average; www.troweprice.com) has now completed its purchase of Oak Hill Advisors L.P....

1 min read

Pat McKeough

Growth Stocks

Three more updates to benefit your portfolio

ABB LTD. ADRs $35 is a buy. This Swiss-based company (New York symbol ABB; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs o/s: 2.0 billion; Market cap: $70.0 billion; Price-to-sales ratio: 2.6; Divd. yield: 2.5%; TSINetwork Rating: Above Average; www.abb.com) is a leading maker of electrical transformers, transmission systems and circuit breakers for electrical utilities....

2 min read

Pat McKeough

Growth Stocks

Deliveries up as travel volumes rise

BOEING CO. $194 remains a hold. The aircraft maker (New York symbol BA; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 586.2 million; Market cap: $113.7 billion; Price-to-sales ratio: 1.9; Dividend suspended in June 2020; TSINetwork Rating: Extra Risk; www.boeing.com) delivered 340 commercial jet planes in 2021 compared to just 157 in 2020....

1 min read

Pat McKeough

Growth Stocks

These quality techs will rebound faster

Technology stocks have come down from their 2021 highs, as it looks increasing likely that the U.S. Federal Reserve will soon raise interest rates in response to rising inflation. That could slow the global economic recovery as the COVID-19 pandemic eases.

Even so, we feel top-quality technology stocks like these three will quickly rebound....

5 min read

Pat McKeough

Growth Stocks

Let niche financials brighten your prospects

Fair Isaac and Broadridge were well positioned to gain during the pandemic: since March of 2020, Fair Isaac is up 150.7%, and Broadridge has jumped 98.1%. We think both stocks have room to move even higher as their products continue to experience strong—and growing —demand.

FAIR ISAAC CORP., $438.80, is a buy. The company (New York symbol FICO; TSINetwork Rating: Average) (www.fairisaac.com; Shares outstanding: 27.4 million; Market cap: $11.9 billion; No dividends paid) is best known for its FICO Scores software....

2 min read

Pat McKeough

Growth Stocks

Restaurant Brands expands Popeyes in two new markets

Restaurant Brands acquired a top asset when it bought Popeyes Louisiana Kitchen in 2017 for $1.64 billion. And a big part of the appeal was the potential for Popeyes to expand further in the U.S. and internationally. Restaurant Brands first focused on U.S. expansion, but now it’s adding more foreign markets.

RESTAURANT BRANDS INTERNATIONAL, $56.17, is a buy. The company (New York symbol QSR; TSI Rating: Average) (www.rbi.com; Shares o/s: 478.0 million; Market cap: $26.8 billion; Yield: 3.8%) continues to expand Popeyes globally.

This includes its just-announced plan to develop and grow the Popeyes brand in South Korea....

1 min read

Pat McKeough

Growth Stocks

Prosper in the pandemic but also beyond

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:

ADOBE INC., $516.58, is a buy. The company (Nasdaq symbol ADBE; TSINetwork Rating: Average) (www.adobe.com; Shares o/s: 475.8 million; Market cap: $244.3 billion; No dividends paid) reports that in the three months ended December 3, 2021, revenue shot up 20.0%, to $4.11 billion from $3.42 billion....

2 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.