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

New users spur NortonLifeLock

NORTONLIFELOCK, $28.84, is a buy. The company (Nasdaq symbol NLOK; TSINetwork Rating: Extra Risk) (nortonlifelock.com; Shares o/s: 581.9 million; Market cap: $17.0 billion; Dividend yield 1.7%) continues to attract new customers as more people working from home spurs a jump in cyberattacks....

1 min read

Pat McKeough

Growth Stocks

Two healthcare leaders with gains ahead

We think the drug industry will enjoy great success over the next decade. But due to the nature of the business, results will vary widely and unpredictably from one drug company to another. A volatile market like the one we expect for drug stocks will include winners and losers....

2 min read

Pat McKeough

Growth Stocks

Amazon ups the price of Prime

AMAZON.COM INC., $3,162.01, is a buy. The company (Nasdaq symbol AMZN; TSINetwork Rating: Average) (www.amazon.com; Shares o/s: 508.8 million; Market cap: $1.6 trillion; No divds.) has announced that it’s raising the cost of Prime membership to $139 per year, or $14.99 per month....

1 min read

Pat McKeough

Growth Stocks

Texas Roadhouse prospers despite COVID-19

With onset of the COVID-19 pandemic, Texas Roadhouse dropped alongside the market. But the restaurant chain used smart strategies to rebound and climb to new highs.

We think the company is well-positioned to capitalize on its popular food offerings to keep attracting more dine-in, pick-up and takeout customers....

2 min read

Pat McKeough

Growth Stocks

ADT links with Ford

ADT INC., $7.91, is a buy. The company (New York symbol ADT; TSINetwork Rating: Extra Risk) (www.adt.com; Shares outstanding: 767.0 million; Market cap: $6.4 billion; Dividend yield 1.8%) is now forming a joint venture with Ford Motor Co....

1 min read

Pat McKeough

Growth Stocks

Here are key updates on your holdings

COLLIERS INTERNATIONAL GROUP INC. $197 remains a buy for aggressive investors. This company (Toronto symbol CIGI; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 42.7 million; Market cap: $8.4 billion; Price-to-sales ratio: 1.7; Dividend yield: 0.2%; TSINetwork Rating: Extra Risk; www.colliers.com) offers a range of services, including helping clients buy and sell commercial real estate, arranging financing, and assessing properties for tax purposes.

Readers continue to benefit from our April 2020 decision to add Colliers to our Successful Investor coverage....

2 min read

Pat McKeough

Growth Stocks

Better efficiency spurs its earnings

TOROMONT INDUSTRIES LTD. $112 is a buy. The company (Toronto symbol TIH; Aggressive Growth Portfolio; Manufacturing sector; Shares outstanding: 82.4 million; Market cap: $9.2 billion; Price-to-sales ratio: 2.3; Dividend yield: 1.4%; TSINetwork Rating: Extra Risk; www.toromont.com) distributes a broad range of industrial equipment (such as bulldozers, backhoe loaders and drills), including Caterpillar machinery, in eastern Canada and the Eastern Seaboard of the U.S....

1 min read

Pat McKeough

Growth Stocks

Stantec makes its acquisitions work

STANTEC INC. $70 is a buy. The engineering firm (Toronto symbol STN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 111.1 million; Market cap: $7.8 billion; Price-to-sales ratio: 1.6; Dividend yield: 1.0%; TSINetwork Rating: Extra Risk; www.stantec.com) is now buying Cox|McLain Environmental Consulting, Inc....

1 min read

Pat McKeough

Growth Stocks

Updating your Aggressive stocks: Teradata, Diebold Nixdorf, and State Street

TERADATA CORP. $40 (www.teradata.com) is a hold. The company makes computers and software to capture and store large amounts of data for individual businesses—its clients. Teradata continues to benefit from its new strategy of selling products as cloud-based subscriptions, instead of one-time software purchases....

1 min read

Pat McKeough

Growth Stocks

T. Rowe’s new acquisition will pay off

T. ROWE PRICE GROUP INC. $157 is a buy. The seller of mutual funds and wealth management services (Nasdaq symbol TROW; Aggressive Growth and Income Portfolios, Finance sector; Shares outstanding: 226.9 million; Market cap: $35.6 billion; Price-to-sales ratio: 4.9; Dividend yield: 2.8%; TSINetwork Rating: Average; www.troweprice.com) has now completed its purchase of Oak Hill Advisors L.P....

1 min read

Pat McKeough

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Investors Association of Canada
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Subscriber since 1996. Inner Circle Member Since 2006
The newsletters I receive in Inner Circle Pro are fantastic! I have been following Pat’s advice for years and everything he has said has been amazing. His commentaries are brilliant, insightful, educational, rational and balanced. My returns are almost double the TSE and I have referred many of my friends who have switched over to your services.

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Inner Circle Pro subscriber

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.