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

LSE stake will spur this dividend

THOMSON REUTERS CORP. $134 is still a buy. The company (Toronto symbol TRI; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 486.2 million; Market cap: $65.2 billion; Price-to-sales ratio: 7.9; Dividend yield: 1.7%; TSINetwork Rating: Above Average; www.thomsonreuters.com) sells specialized information and software to the legal, tax and accounting fields.

In January 2021, Thomson and Blackstone Group merged their Refinitiv financial information business with LSE—the London Stock Exchange Group plc (Over-the-counter Pink Sheets symbol LDNXF).

As of February 7, 2022, Thomson’s stake in LSE was worth $7.0 billion U.S....

1 min read

Pat McKeough

Growth Stocks

Plant-based sales weakened in 2021

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: 0.8; Dividend yield: 2.6%; TSINetwork Rating: Average; www.mapleleaffoods.com) has expanded beyond processed meat products in the past few years....

1 min read

Pat McKeough

Growth Stocks

CAE is a better choice as air travel rebounds

The lifting of COVID-19 travel restrictions is good news for all these aerospace firms. However, we still prefer CAE for its broader array of businesses. As well, Bombardier’s plan to suspend jet sales to Russian clients could slow its turnaround given that market contributes 5% of revenue.

CAE INC....

2 min read

Pat McKeough

Growth Stocks

New law will aid Motorola gains

MOTOROLA SOLUTIONS INC. $208 is a buy. The company (New York symbol MSI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 168.2 million; Market cap: $35.0 billion; Price-to-sales ratio: 4.6; Dividend yield: 1.5%; TSINetwork Rating: Average; www.motorolasolutions.com) makes communications equipment such as two-way radios for police and fire vehicles, as well as high-definition surveillance systems....

1 min read

Pat McKeough

Growth Stocks

These tech leaders continue to impress us

Agilent’s spinoff of Keysight in November 2014 let each firm focus on its core strengths in its own niche markets. The split also continues to please investors—Agilent is up 230%, while Keysight has gained 385%.

AGILENT TECHNOLOGIES INC. $126 is a buy. The company (New York symbol A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 300.0 million; Market cap: $37.8 billion; Price-to-sales ratio: 6.3; 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

Cyberattacks spur this stock

NORTONLIFELOCK INC. $27 is a buy. The company (Nasdaq symbol NLOK; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 581.9 million; Market cap: $15.7 billion; Price-to-sales ratio: 6.0; Dividend yield: 1.9%; TSINetwork Rating: Average; www.nortonlifelock.com) has two main businesses: Norton computer antivirus software; and LifeLock identity-theft protection.

NortonLifeLock will soon complete its acquisition of European cybersecurity firm Avast plc for $8 billion....

1 min read

Pat McKeough

Growth Stocks

Two ways to diversify your Finance holdings

The Finance sector offers investors a wide variety of options beyond traditional banks. Here are two great picks to expand your holdings in this sector.

EBAY INC. $55 is a buy. The company (Nasdaq symbol EBAY; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 626.0 million; Market cap: $34.4 billion; Price to-sales ratio: 3.3; Dividend yield: 1.6%; TSINetwork Rating: Above Average; www.ebay.com) operates e-commerce websites, in over 190 countries, where sellers pay fees to auction items or offer them at fixed prices.

In June 2021, eBay sold its classified ad business to Norway’s Adevinta ASA (Over-the-counter Pink Sheets symbol ADEVF)....

2 min read

Pat McKeough

Growth Stocks

Its sales growth will slow in 2022

TENNANT CO. $76 is still a hold. The company (New York symbol TNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 18.5 million; Market cap: $1.4 billion; Price-to-sales ratio: 1.4; Dividend yield: 1.3%; TSINetwork Rating: Average; www.tennantco.com) makes industrial floor and street-cleaning equipment, including scrubbers, sweepers and polishers.

Tennant’s sales probably rose 10% in 2021 as more of its clients, such as retail stores, schools and sports arenas, continue to re-open following 2020’s COVID-19 shutdowns....

1 min read

Pat McKeough

Growth Stocks

Howmet exceeds its savings target

HOWMET AEROSPACE INC. $34 is a hold. The company (New York symbol HWM; Manufacturing & Industry sector; Shares outstanding: 418.9 million; Market cap: $14.2 billion; Price-to-sales ratio: 3.0; Dividend yield: 0.2%; TSINetwork Rating: Average; www.howmet.com) makes a variety of industrial parts, from jet engine components and fasteners to forged aluminum wheels.

A restructuring plan cut Howmet’s expenses by $130 million in 2021, which was well ahead of its $100 million target....

1 min read

Pat McKeough

Growth Stocks

Two picks for post-pandemic gains

Shares of medical device makers Becton Dickinson and Baxter have stayed in a narrow range for the past two years as the COVID-19 pandemic forced hospitals to postpone routine procedures.

Now that the pandemic is easing, we feel both companies—and their shares—are poised for solid gains over the next few years....

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.