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

Metro aims for more buybacks

METRO INC. $65 is a buy. The company (Toronto symbol MRU; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 244.1 million; Market cap: $15.9 billion; Price-to-sales ratio: 0.9; Dividend yield: 1.5%; TSINetwork Rating: Average; www.metro.ca) operates 950 grocery stores and 650 drugstores (mainly under the Jean Coutu banner), in Quebec, Ontario and New Brunswick.

The stock held up well during the pandemic as governments designated its supermarkets and drugstores essential services for consumers stocking up on food and other goods....

1 min read

Pat McKeough

Growth Stocks

RioCan sales will fund new projects

RIOCAN REAL ESTATE INVESTMENT TRUST $23 is a buy. The REIT (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 317.8 million; Market cap: $7.3 billion; Price-to-sales ratio: 6.3; Distribution yield: 4.2%; TSINetwork Rating: Average; www.riocan.com) owns all or part of 214 shopping centres and other properties across Canada.

The REIT expects to spend about $500 million on new projects in 2021....

1 min read

Pat McKeough

Growth Stocks

Aggressive pick can still go higher

With the April 2020 issue, we promoted real estate services firm FirstService to our Aggressive Growth Portfolio from its original spot as a Power Growth Investor pick. Since then, the stock has jumped 87% as the COVID-19 pandemic prompted homeowners and businesses to upgrade their properties....

4 min read

Pat McKeough

Growth Stocks

Updating our Aggressive stocks: Diebold Nixdorf Inc., NCR Corp. and Keysight Technologies Inc.

DIEBOLD NIXDORF INC. $10 (www.dieboldnixdorf.com) is still hold, but only for aggressive investors. The company is the world’s biggest maker of automated teller machines (ATMs). The stock has rebounded strongly from its March 2020 low of $2.80....

1 min read

Pat McKeough

Growth Stocks

Boeing faces another setback

BOEING CO. $207 remains a hold. The aircraft maker (New York symbol BA; Conservative Growth Portfolio, Manufacturing sector; Shares o/s: 586.2 million; Market cap: $121.3 billion; Price-to-sales ratio: 2.0; Dividend suspended in June 2020; TSINetwork Rating: Extra Risk; www.boeing.com) delivered 85 commercial jet planes in the third quarter of 2021 compared to just 28 in the year-earlier quarter.

That increase is mainly because the company has resumed deliveries of its 737 Max jetliners after it fixed a problem with the autopilot software that probably contributed to the crashes in Ethiopia and Indonesia in 2019....

1 min read

Pat McKeough

Growth Stocks

Merger savings will boost profits

INTERNATIONAL FLAVORS & FRAGRANCES INC. $148 is a buy. The company (New York symbol IFF; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 254.5 million; Market cap: $37.7 billion; Price-to-sales ratio: 3.1; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.iff.com) makes compounds that improve the taste of food and the smell of consumer products.

On February 1, 2021, IFF merged with the nutrition and biosciences business of DuPont (New York symbol DD)....

1 min read

Pat McKeough

Growth Stocks

Diageo expands tequila production

DIAGEO PLC ADR $199 is a hold. The U.K.-based company (New York symbol DEO; Conservative Growth Portfolio, Consumer sector; ADRs outstanding: 629.0 million; Market cap: $125.1 billion; Price-to-sales ratio: 6.7; Dividend yield: 2.0%; TSINetwork Rating: Above Average; www.diageo.com) is a leading maker of premium alcoholic beverages....

1 min read

Pat McKeough

Growth Stocks

Get foreign exposure with high-quality ADRs

A great way for investors to gain exposure to some of the world’s best companies is with American Depositary Receipts (ADRs) that trade on New York. Here are three of our favourites (including Diageo—see box). Note, however, that we see only two of them as buys for right now.

ABB LTD....

2 min read

Pat McKeough

Growth Stocks

Bright outlook spurs dividend hike

BROADRIDGE FINANCIAL SOLUTIONS INC. $181 is a buy. The company (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares o/s: 116.2 million; Market cap: $21.0 billion; Price-to-sales ratio: 4.3; Divd. yield: 1.4%; TSINetwork Rating: Average; www.broadridge.com) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing.

Broadridge stands to gain from the growing push of the financial services industry to improve efficiency and lower its costs....

1 min read

Pat McKeough

Growth Stocks

Three techs poised for post-COVID gains

These three technology stocks shone as COVID-19 lockdowns spurred strong demand for their products. Even though the pandemic is easing, we still like their long-term prospects.

NVIDIA CORP. $244 remains a buy for aggressive investors. The company (Nasdaq symbol NVDA; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 2.5 billion; Market cap: $610.0 billion; Price-to-sales ratio: 26.2; Dividend yield: 0.1%; TSINetwork Rating: Average; www.nvidia.com) is a leading designer of 3D-capable video chips; they make video games run more smoothly and appear more lifelike....

5 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.