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

Dividend hikes signal their renewed growth

The coronavirus pandemic forced the cancellation of most vacation plans. Now, however, with COVID-19 vaccination numbers rising, the outlook for both these stocks is bright again. We see both as buys.

WYNDHAM HOTELS & RESORTS, $86.30, is suitable for your new buying. The company (New York symbol WH; TSINetwork Rating: Extra Risk) (www.wyndhamhotels.com; Shares outstanding: 93.2 million; Market cap: $8.0 billion; Dividend yield: 1.1%) is the world’s largest hotel franchiser, with 802,600 rooms spread across 9,000 hotels in 95 countries....

2 min read

Pat McKeough

Growth Stocks

Customer growth enhances their outlook

PagerDuty’s clients are mostly big corporations, while NortonLifeLock targets the consumer market. But both have winning business models that we expect will lead to strong growth in future years. We see PagerDuty as a Power Buy and NortonLifeLock as a buy.

PAGERDUTY INC., $41.16, is a buy. The company (New York symbol PD; TSINetwork Rating: Extra Risk) (www.pagerduty.com; Shares outstanding: 85.0 million; Market cap: $3.6 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.

In the quarter ended July 31, 2021, revenue rose 33.2%, to $67.5 million from $50.7 million a year earlier....

2 min read

Pat McKeough

Growth Stocks

ACI rises with global-payments surge

ACI WORLDWIDE, $33.86, is a buy. The company (Nasdaq symbol ACIW; TSINetwork Rating: Extra Risk) (Shares o/s: 117.6 million; Market cap: $4.1 billion; No divds.) is the leading software provider for processing transactions by credit cards, debit cards, ATMs, point-of-sale terminals and interbank systems....

1 min read

Pat McKeough

Growth Stocks

Garmin is a leader in five growing markets

Garmin wasted no time in rewarding our subscribers since we first recommended it in late 2020. The stock is up 39.3% since its inaugural appearance in the September issue of Power Growth Investor at $103.99. Meanwhile, the company is at the forefront of its technology markets, and we think it will go even higher....

2 min read

Pat McKeough

Growth Stocks

1Life adds a major U.S. health insurer as a client

1Life recently paid $2.1 billion for Iora Health, a primary-care group aimed at serving Medicare populations. The Iora acquisition not only extends 1Life’s geography reach around the U.S. to a combined 28 markets, but across all ages of patients. As well, the purchase is already paying off with the signing of a big new client.

1LIFE HEALTHCARE, $21.86, is a buy. The company (Nasdaq symbol ONEM; TSINetwork Rating: Extra Risk) (www.onemedical.com; Shares outstanding: 193.1 million; Market cap: $4.4 billion; No dividend) is a membership-based provider of primary health care through its One Medical technology platform....

1 min read

Pat McKeough

Growth Stocks

QSR enters key niche

RESTAURANT BRANDS INTERNATIONAL, $57.83, is a buy. The company (New York symbol QSR; TSINetwork Rating: Average) (www.rbi.com; Shares o/s: 478.0 million; Market cap: $27.6 billion; Divd. yield: 3.7%) has agreed to buy privately held Firehouse Subs for $1 billion.

Florida-based Firehouse Subs, which was founded in 1994 by brothers and former firefighters Chris and Robin Sorensen, has nearly 1,200 locations across the U.S....

1 min read

Pat McKeough

Growth Stocks

Alcon builds on its global dominance

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 108% from its March 2020 lows, but we think it can go much higher....

2 min read

Pat McKeough

Growth Stocks

New plan cuts Thomson’s costs

THOMSON REUTERS CORP. $150 remains a buy. The company (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 497.1 million; Market cap: $74.6 billion; Price-to-sales ratio: 9.6; Dividend yield: 1.3%; TSINetwork Rating: Above Average; www.thomsonreuters.com) sells specialized information and software to the legal, tax and accounting fields.

Thomson’s revenue in the third quarter of 2021 rose 5.8%, to $1.53 billion from $1.44 billion a year earlier (all amounts except share price and market cap in U.S....

1 min read

Pat McKeough

Growth Stocks

Here are key updates on your holdings

RESTAURANT BRANDS INTERNATIONAL INC. $72 is a buy. The company (Toronto symbol QSR; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 460.3 million; Market cap: $33.1 billion; Price-to-sales ratio: 5.0; Dividend yield: 3.7%; TSINetwork Rating: Average; www.rbi.com) is the world’s third-largest fast-food operator....

2 min read

Pat McKeough

Growth Stocks

Fake meat sales continue to slow

MAPLE LEAF FOODS INC. $31 is still a hold. The company (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 123.9 million; Market cap: $3.8 billion; Price-to-sales ratio: 0.9; Dividend yield: 2.3%; TSINetwork Rating: Average; www.mapleleaffoods.com) has expanded beyond its traditional fresh and processed meat businesses in the past few years....

1 min read

Pat McKeough

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Investors Association of Canada
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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.