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

Higher military spending lifts RTX

RAYTHEON TECHNOLOGIES CORP. $99 is a buy. The company (New York symbol RTX; Conservative Growth Portfolio; Manufacturing & Industry sector; Shares outstanding: 1.5 billion; Market cap: $148.5 billion; Dividend yield: 2.2%; Price-to-sales ratio: 2.3; TSINetwork Rating: Above Average; www.rtx.com) took its current form on April 3, 2020, with the merger of United Technologies Corp....

1 min read

Pat McKeough

Growth Stocks

Small acquisition a nice fit for IFF

INTERNATIONAL FLAVORS & FRAGRANCES INC. $123 is a buy. The company (New York symbol IFF; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 254.7 million; Market cap: $31.3 billion; Price-to-sales ratio: 2.6; Dividend yield: 2.6%; TSINetwork Rating: Above Average; www.iff.com) makes compounds that improve the taste of food and the smell of consumer products.

The company has acquired Health Wright Products....

1 min read

Pat McKeough

Growth Stocks

Here’s a buy for turbulent times

Mondelez has held up well during the recent market turmoil. While the stock is down about 3% since the start of 2022, the S&P 500 Index has suffered a 12% drop.

We feel the stock remains a solid pick for conservative investors. Mondelez continues to launch more-healthful, premium-priced products....

4 min read

Pat McKeough

Growth Stocks

Here are two stocks we now see as sells

Long-time readers know that we are constantly reevaluating our stock picks. Here are two stocks that have only limited growth prospects for the foreseeable future. We now see them both as sells.

WW INTERNATIONAL, $10.45 (Nasdaq symbol WW; TSINetwork Rating: Extra Risk) (www.ww.com; Shares outstanding: 70.1 million; Market cap: $742.2 million; No dividends paid), needs to keep attracting younger consumers with digital offerings and apps to restore its growth....

1 min read

Pat McKeough

Growth Stocks

Time to benefit from their expanding niches

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:

STERIS PLC, $252.92, is a buy. The firm (New York symbol STE; TSINetwork Rating: Extra Risk) (www.steris.com; Shares outstanding: 100.1 million; Market cap: $24.8 billion; Dividend yield: 0.7%) sells sterilization equipment, surgical tables, and other products and services used in hospitals and laboratories.

In the quarter ended December 31, 2021, Steris’s revenue jumped 49.5%, to $1.2 billion from $808.9 million a year earlier....

2 min read

Pat McKeough

Growth Stocks

Wyndham targets growth market

WYNDHAM HOTELS & RESORTS, $90.64 (New York symbol WH; TSINetwork Rating: Extra Risk) (www.wyndhamhotels.com; Shares o/s: 92.2 million; Market cap: $8.3 billion; Dividend yield: 1.4%), now plans to create an extended-stay brand focused on the budget market....

1 min read

Pat McKeough

Growth Stocks

Travel + Leisure expands into wine

TRAVEL + LEISURE CO., $55.79, is a buy. The company (New York symbol TNL; TSINetwork Rating: Extra Risk) (www.travelandleisureco.com; Shares o/s: 85.5 million; Market cap: $4.7 billion; Dividend yield: 2.9%) is now the world’s largest vacation-ownership and exchange company....

1 min read

Pat McKeough

Growth Stocks

Adobe prospers in the pandemic and beyond

This leading software firm benefited from the significant number of people working from home during the pandemic. Going forward. we expect the remote-work trend to continue past the COVID-19 crisis and to spur rising demand for Adobe’s digital conferencing software and other apps.

Meanwhile, there are other drivers pushing Adobe upward, including the company’s strong position in key markets and its high R&D spending....

2 min read

Pat McKeough

Growth Stocks

Amazon aims to compete with Elon Musk

Amazon is now accelerating its Project Kuiper initiative. This aims to provide high-speed broadband service using a constellation of low Earth orbit satellites. This latest move will also strengthen its competitive position against Elon Musk’s SpaceX, which is currently building out its rival Starlink program.

AMAZON.COM INC., $3,079.96, is a buy. The company (Nasdaq symbol AMZN; TSINetwork Rating: Average) (www.amazon.com; Shares o/s: 508.6 million; Market cap: $1.6 trillion; No divds.) has now entered agreements with commercial space companies Arianespace, Blue Origin and United Launch Alliance to aid the execution of Project Kuiper.

The three firms will provide heavy-lift launch services to Project Kuiper....

1 min read

Pat McKeough

Growth Stocks

Tap into IT’s future

PAGERDUTY INC., $31.28, is a buy. The company (New York symbol PD; TSINetwork Rating: Extra Risk) (www.pagerduty.com; Shares o/s: 87.1 million; Market cap: $2.9 billion; No dividends paid) operates a platform that collects real-time data from software systems and devices and then notifies its IT customers of any incident that could harm their operations.

For the three months ended January 31, 2022, revenue rose 32.4%, to $71.8 million from $59.3 million a year earlier....

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.