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

‘Build and Buy’ plan works

CGI INC. $108 is your #1 Aggressive buy for 2021. The company (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 247.9 million; Market cap: $26.8 billion; Price-to-sales ratio: 2.2; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) is Canada’s largest provider of computer-outsourcing services.

CGI follows what its calls a “Build and Buy” strategy....

1 min read

Pat McKeough

Growth Stocks

Metro takes aim at its costs

METRO INC., $60.77, is a buy. The company (Toronto symbol MRU; Shares ooutstanding: 244.1 million; Market cap: $14.5 billion; TSINetwork Rating: Average; Dividend yield: 1.7%; www.metro.ca) is using automation to cut its labour and other costs.

As part of that plan, Metro is building a new distribution centre in Toronto that uses automated equipment to handle fresh and frozen foods....

1 min read

Pat McKeough

Growth Stocks

FedEx builds on its cloud expertise

FEDEX CORP. $229 remains a buy. The company (New York symbol FDX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 266.2 million; Market cap: $61.0 billion; Price-to-sales ratio: 0.7; Dividend yield: 1.2%; TSINetwork Rating: Average; www.fedex.com) delivers packages and documents in the U.S....

1 min read

Pat McKeough

Growth Stocks

T. Rowe Price profits as stocks rise

T. ROWE PRICE GROUP INC. $207 is a buy. The company’s (Nasdaq symbol TROW; Aggressive Growth and Income Portfolios, Finance sector; Shares outstanding: 226.9 million; Market cap: $47.0 billion; Price-to-sales ratio: 6.6; Dividend yield: 2.1%; TSINetwork Rating: Average; www.troweprice.com) fee income rises with the value of the securities it manages....

1 min read

Pat McKeough

Growth Stocks

Tap consumer switch to electronic payments

The re-opening of the economy has spurred the share prices for Visa and American Express. Even if lockdowns return, investors will continue to profit as more consumers use electronic payments instead of cash.

VISA INC. $223 is a buy. The stock (New York symbol V; Conservative Growth Portfolio, Finance sector; Shares outstanding: 2.2 billion; Market cap: $490.6 billion; Price-to-sales ratio: 21.6; Dividend yield: 0.6%; TSINetwork Rating: Above Average; www.visa.com) gives you exposure to the world’s largest electronic-payments network.

In its fiscal 2021 third quarter, ended June 30, 2021, Visa processed 42.56 billion transactions....

2 min read

Pat McKeough

Growth Stocks

Exclusive games give Sony an edge

SONY GROUP CORP. ADRs $115 is a hold. The Japanese conglomerate (New York symbol SONY; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.3 billion; Market cap: $149.5 billion; Price-to-sales ratio: 0.1; Dividend yield: 0.4%; TSINetwork Rating: Average; www.sony.net) recently paid an undisclosed sum for U.K.-based video game developer Firesprite Ltd....

1 min read

Pat McKeough

Growth Stocks

This spinoff continues to impress

OTIS WORLDWIDE CORP. $84 is a buy. The company (New York symbol OTIS; Conservative Growth Portfolio; Manufacturing & Industry sector; Shares outstanding: 426.8 million; Market cap: $35.9 billion; Price-to-sales ratio: 2.6; Dividend yield 1.1%; TSINetwork Rating: Average; www.otis.com) is the world’s largest maker of elevators and escalators.

Otis took its current form on April 3, 2020, when Raytheon Technologies (formerly United Technologies) spun off it as a separate firm....

1 min read

Pat McKeough

Growth Stocks

Archer aims to profit from pet boom

ARCHER DANIELS MIDLAND CO. $59 is a buy. The stock (New York symbol ADM; High-Growth Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 559.4 million; Market cap: $33.0 billion; Dividend yield: 2.5%; Dividend Sustainability Rating: Above Average; www.adm.com) processes corn, wheat, soybeans, flax seed, peanuts and other crops into a variety of food ingredients.

The company has agreed to acquire a 75% stake in P4 Companies, which makes pet treats under the PetDine, Pedigree Ovens, The Pound Bakery and NutraDine brands....

1 min read

Pat McKeough

Growth Stocks

We prefer Alphabet’s software focus

Alphabet and Apple both rose strongly during the COVID-19 pandemic as consumers in lockdown spent more on new devices and online downloads.

Now that the pandemic is easing, we continue to prefer Alphabet for your new buying. As a software maker, it does not face the same potential chip shortages and shipping delays that Apple does, particularly as that smartphone giant prepares to launch its new iPhone....

4 min read

Pat McKeough

Growth Stocks

Walt Disney expands key retail relationship

The pandemic spurred Walt Disney to close almost all of its brick-and-mortar stores to focus on its more profitable e-commerce business. But now, together with Target Corp., it’s building back that presence.

WALT DISNEY CO. $184.41 (New York symbol DIS; TSINetwork Rating: Above Average) (www.disney.com; Shares o/s: 1.8 billion; Market cap: $331.4 billion; No dividend) continues to close North American Disney Store retail locations, with 57 more shuttering in the coming weeks....

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.