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

Alcon taps into profitable markets

Swiss pharmaceutical giant Novartis spun off Alcon in 2019. And as we’ve said many times before, spinoffs are the closest thing you can find to a sure thing, regardless of the market’s rise and fall.

The stock is already up over 77% from its March 2020 low, but we think it can go much higher....

2 min read

Pat McKeough

Growth Stocks

Here are key updates on your holdings

COLLIERS INTERNATIONAL GROUP INC. $138 remains a buy for aggressive investors. This company (Toronto symbol CIGI; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 42.7 million; Market cap: $5.9 billion; Price-to-sales ratio: 1.1; Dividend yield: 0.3%; TSINetwork Rating: Extra Risk; www.colliers.com) offers a range of services, including helping clients buy and sell commercial real estate, arranging financing, and assessing properties for tax purposes.

In the first quarter of 2022, Colliers spent $52.5 million buying smaller businesses (all amounts except share price and market cap in U.S....

2 min read

Pat McKeough

Growth Stocks

Their focus on services is a smart move

Both of these engineering firms mainly focus on designing and consulting services. That cuts their risk to expensive cost overruns. We feel Stantec remains the better pick as it has much less exposure to unprofitable legacy projects.

STANTEC INC....

2 min read

Pat McKeough

Growth Stocks

New investments start to pay off

THOMSON REUTERS CORP. $120 is still a buy. The company (Toronto symbol TRI; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 486.2 million; Market cap: $58.3 billion; Price-to-sales ratio: 7.2; Dividend yield: 1.9%; TSINetwork Rating: Above Average; www.thomsonreuters.com) reports that its revenue in the three months ended March 31, 2022, rose 5.7%, to $1.67 billion from $1.58 billion a year earlier (all amounts except share price and market cap in U.S....

1 min read

Pat McKeough

Growth Stocks

These two grocers just keep getting stronger

Loblaw and Metro have successfully weathered the pandemic so far and, in fact, both stocks are trading at all-time highs for our subscribers! Meanwhile, many of their customers who opted for home delivery (or in-store pickup) during pandemic lockdowns are sticking with that value-added service....

2 min read

Pat McKeough

Growth Stocks

Updating our Aggressive stocks: Diebold Nixdorf, NCR & Idexx Laboratories

DIEBOLD NIXDORF INC. $4.31 (www.dieboldnixdorf.com) is still a hold, but only for aggressive investors. The company is the world’s biggest maker of automated teller machines (ATMs). Diebold has suspended shipments and sales to clients in Russia as a result of that country’s invasion of Ukraine....

1 min read

Pat McKeough

Growth Stocks

Cisco rewards investors

CISCO SYSTEMS INC. $49 is a buy. The company (Nasdaq symbol CSCO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.2 billion; Market cap: $205.8 billion; Price-to-sales ratio: 4.2; Dividend yield: 3.1%; TSINetwork Rating: Average; www.cisco.com) makes hardware and software to link computer networks.

Cisco raised your quarterly dividend by 2.7% with the April 2022 payment....

1 min read

Pat McKeough

Growth Stocks

Sale fuels big buyback plan

STANLEY BLACK & DECKER INC. $139 is a buy. The company (New York symbol SWK; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 163.4 million; Market cap: $22.7 billion; Price-to-sales ratio: 1.5; Dividend yield: 2.3%; TSINetwork Rating: Average; www.stanleyblackanddecker.com) is one of the world’s largest makers of hand and power tools for consumers.

Stanley will now sell its automatic doors business, Access Technologies, to Allegion plc (New York symbol ALLE) for $900 million....

1 min read

Pat McKeough

Growth Stocks

Look for PayPal to rebound

PAYPAL HOLDINGS INC. $83 is a buy, but only for highly aggressive investors. The company (Nasdaq symbol PYPL; Aggressive Growth Portfolio, Finance sector; Shares o/s: 1.2 billion; Market cap: $99.6 billion; Price-to-sales ratio: 4.0; No dividends paid; TSINetwork Rating: Above Average; www.paypal.com) processes online transactions on millions of websites, including purchases made on eBay, its former parent company....

1 min read

Pat McKeough

Growth Stocks

Top lenders rely on these service providers

These stocks are a good way for investors to diversify their Finance sector holdings beyond the big banks. Both provide vital services to other lenders and firms, which helps cut your risk.

STATE STREET CORP. $67 is a buy. The company (New York symbol STT; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 367.1 million; Market cap: $24.6 billion; Price-to-sales ratio: 2.3; Dividend yield: 3.4%; TSINetwork Rating: Average; www.statestreet.com) sells accounting and administrative services to operators of mutual funds and pension plans....

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.