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

High debt level is a risk factor

WARNER BROS. DISCOVERY INC. $12 remains a hold. The company (Nasdaq symbol WBD; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 2.5 billion; Market cap: $30.0 billion; Price-to-sales ratio: 0.8; No dividend paid; TSINetwork Rating: Average; www.wbd.com) plans to split into two new firms—Global Networks will hold its cable channels (including CNN, HBO, TNT, TBS, Cartoon Network, Discovery, HGTV, Food Network, TLC and Animal Planet), while Streaming & Studios will own the Warner Bros. film and TV production studios and the various streaming services, including HBO Max.

1 min read

Pat McKeough

Growth Stocks

Their market dominance cuts your risk

These three Finance sector stocks are riskier than the major banks. However, they dominate their niche markets, which should continue to drive their earnings growth. We like all three, but only for aggressive investors.

5 min read

Pat McKeough

Growth Stocks

Key trends will spur these U.S. growth stocks

Both of these firms are profitable and are well positioned to keep prospering. Trends underway as well as the strong position of each firm in its respective markets will power future gains. Both of these leaders are buys.

2 min read

Pat McKeough

Growth Stocks

Electronic Arts reaches new high on game buzz

Electronic Arts recently soared to a new all-time high on consumer excitement about “Battlefield 6.” That’s the latest in the company’s combat action video game series. We still see gains ahead for the stock.

1 min read

Pat McKeough

Growth Stocks

Wyndham expands in rising market

WYNDHAM HOTELS & RESORTS, $86.43, is a buy. The company (New York symbol WH; TSINetwork Rating: Average) (www.wyndhamhotels.com; Shares outstanding: 76.4 million; Market cap: $6.6 billion; Dividend yield: 1.9%) aims to accelerate its expansion across India and the surrounding region with a new strategic alliance with Cygnett Hotels & Resorts.

1 min read

Pat McKeough

Growth Stocks

Buy either of these finance leaders for growth

Fair Isaac and ACI Worldwide have winning business models, especially in today’s expanding financial markets. We believe that will lead to strong growth in future years. Both are buys.

2 min read

Pat McKeough

Growth Stocks

Planet Fitness faces fierce competition

You should remain wary of stocks that attract broker/media attention because of high-profile products or services, and their business models. Here’s a closer look at one stock with risks that prospective investors should take into consideration:

1 min read

Pat McKeough

Growth Stocks

These ‘AI buys’ should spur your returns

Artificial intelligence (AI) is an example of an investment idea that could boost your investment returns, or, more likely, end up costing you money. All in all, we think that the biggest, surest gains from AI will come from investing in established businesses that are already profitable and growing, and that can gain all the more by applying AI to their operations.

Here are two companies that are already profitably taking advantage of AI, and they should be among the leaders in the push to extend AI’s use:

1 min read

Pat McKeough

Growth Stocks

Garmin is poised to achieve new highs

Pandemic lockdowns provided Garmin with a big boost, but the stock has since gone on to hit today’s all-time highs. Going forward, we still like its prospects for growth despite its competitive markets. We think this Power Buy is poised to move even higher for you.

2 min read

Pat McKeough

Growth Stocks

Amazon launches a major grocery-delivery expansion

Amazon is the largest e-commerce company, but its grocery business hasn’t grown as fast as some rivals’. For example, Walmart’s larger online grocery business now offers same-day deliver to 90% of the U.S.

1 min read

Pat McKeough

Testimonials

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Chuck Chakrapani, PhD
Investors Association of Canada
The older I get the better dividends look. For retirees and would-be retirees who want to sleep at night, I can’t think of a better source of information on reliable growing dividend income than Pat McKeough’s newsletter, Dividend Advisor.

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Financial Post Columnist
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John Sartz
I appreciate the 25 years of above market returns I received by following your advice. at least 95% of my investment decisions were based on TSI recommendations.

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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.

Walter H.
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.