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

This acquisition is already paying off

BAXTER INTERNATIONAL INC. $75 is a buy. The company (New York symbol BAX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 503.5 million; Market cap: $37.8 billion; Price-to-sales ratio: 2.7; Dividend yield: 1.5%; TSINetwork Rating: Average; www.baxter.com) recently acquired Hill-Rom Holdings Inc....

1 min read

Pat McKeough

Growth Stocks

Investors continue to like this breakup

Agilent and Keysight, which it spun off in November 2014, continue to benefit investors as their split lets each focus on its own niche markets. Since the breakup, Agilent has gained 215%, while Keysight is up 336%.

AGILENT TECHNOLOGIES INC. $120 is a buy. The company (New York symbol A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 299.0 million; Market cap: $35.9 billion; Price-to-sales ratio: 5.7; Dividend yield: 0.7%; TSINetwork Rating: Average; www.agilent.com) makes specialized testing equipment for medical research laboratories and industrial clients....

2 min read

Pat McKeough

Growth Stocks

PS5 sales will pay for buyback plan

SONY GROUP CORP. ADRs $88 is a hold. The Japanese conglomerate (New York symbol SONY; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.2 billion; Market cap: $105.6 billion; Price-to-sales ratio: 1.4; Dividend yield: 0.5%; TSINetwork Rating: Average; www.sony.com) continued to benefit from strong consumer demand for video games due to COVID-19 lockdowns....

1 min read

Pat McKeough

Growth Stocks

Two ways to diversify your Finance holdings

These legacy industrial conglomerates are now breaking up into smaller firms. Eliminating their “holding company discounts” should unlock value for shareholders. However, ABB has a brighter short-term outlook than GE.

ABB LTD. ADRs $30 is a buy. This Swiss-based company (New York symbol ABB; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 2.0 billion; Market cap: $60.0 billion; Price-to-sales ratio: 2.0; Dividend yield: 2.9%; TSINetwork Rating: Above Average; www.abb.com) plans to narrow its focus to its main electrification and automation businesses.

Under that strategy, the company will sell or spinoff its turbocharging business (called Accelleron) later this year....

2 min read

Pat McKeough

Growth Stocks

Birchcliff Energy still has room to rise

Oil and gas stocks have moved up lately as the U.S. and other economies recover—and with the war in Ukraine.

We continue to recommend that most investors maintain some exposure to the oil and gas industry as part of a balanced portfolio. But to cut risk, you should stick with producers that have positive cash flow even in times of low energy prices....

4 min read

Pat McKeough

Growth Stocks

Government backing supports these buys

Both Calian and WELL Health have had a major plus on their side during COVID-19 uncertainty. Specifically, the two get most of their revenue from governments. For Calian, revenue generated from federal departments and agencies currently represent about 69% of the total....

2 min read

Pat McKeough

Growth Stocks

Two restaurants that made all the right moves

With COVID-19, shares of Texas Roadhouse and Chipotle dropped alongside the market. But both food chains used smart strategies to support their businesses during the pandemic. Now, as the economy normalizes, we think each is well-positioned to capitalize on its popular offerings to attract dine-in, pick-up and takeout customers....

2 min read

Pat McKeough

Growth Stocks

EA cuts ties with FIFA soccer

ELECTRONIC ARTS, $128.97, is a buy. The company (Nasdaq symbol EA; TSINetwork Rating: Extra Risk) (www.ea.com; Shares o/s: 281.2 million; Market cap: $36.1 billion; Dividend yield: 0.6%) now plans to remove the word “FIFA” from the title of its popular soccer videogame franchise when its partnership with FIFA ends....

1 min read

Pat McKeough

Growth Stocks

TJX prospers in an evolving retail environment

Many traditional bricks-and-mortar retailers will continue to struggle against the COVID-spurred onslaught of online shopping. Some will even go out of business. But we believe TJX’s unique business model offers you the possibility of strong gains ahead, and we recommend the stock as a Power Buy.

THE TJX COMPANIES, $60.19 (New York symbol TJX; TSINetwork Rating: Above Average) (tjx.com; Shares o/s: 1.2 billion; Market cap: $66.0 billion; Yield: 2.0%), is a leading off-price retailer of clothing, accessories and home fashions....

2 min read

Pat McKeough

Growth Stocks

Gain from key trends

BROADRIDGE FINANCIAL SOLUTIONS, $136.60, is a buy. The company (New York symbol BR; TSINetwork Rating: Average) (www.broadridge.com; Shares o/s: 117.2 million; Market cap: $16.5 billion; Divd. yield: 1.9%) continues to be the leader in its expanding markets.

This includes meeting the needs of the financial services industry as it pushes to improve efficiency and lower costs by outsourcing key middle and back-office functions to Broadridge.

As well, new regulations in the U.S....

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.