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

Finning rewards its investors

FINNING INTERNATIONAL INC. $32 is a buy. The company’s (Toronto symbol FTT; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 162.4 million; Market cap: $5.2 billion; Price-to-sales ratio: 0.8; Dividend yield: 2.8%; TSINetwork Rating: Above Average; www.finning.com) shares continue to recover from their March 2020 low of $10.59....

1 min read

Pat McKeough

Growth Stocks

CAE remains a better buy than Bombardier

CAE and Bombardier have rebounded strongly from their March 2020 lows as the rollout of COVID-19 vaccines help spur air travel volumes. We like both their outlooks, but CAE is the better choice for your new buying.

CAE INC. $38 is a buy. The company (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 316.8 million; Market cap: $12.0 billion; Price-to-sales ratio: 3.8; Dividend suspended in March 2020; TSINetwork Rating: Average; www.cae.com) is a leading maker of flight simulators for commercial and military aircraft....

2 min read

Pat McKeough

Growth Stocks

Fast-food stock has a bright future

RESTAURANT BRANDS INTERNATIONAL INC. $82 is a buy for aggressive investors. The company (Toronto symbol QSR; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 465.5 million; Market cap: $38.2 billion; Price-to-sales ratio: 4.7; Dividend yield: 3.3%; TSINetwork Rating: Average; www.rbi.com) has 27,025 fast-food outlets in over 100 countries: 18,625 Burger King, 4,949 Tim Hortons (coffee and donuts), and 3,451 Popeyes Louisiana Kitchen (fried chicken)....

1 min read

Pat McKeough

Growth Stocks

Long-term deals give CGI an edge

CGI INC., $116 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: $28.8 billion; Price-to-sales ratio: 2.4; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) is Canada’s largest provider of computer-outsourcing services.

CGI gets roughly half of its revenue from long-term contracts, usually longer than five years....

1 min read

Pat McKeough

Growth Stocks

Our updates keep you on top of your stocks

LOBLAW COMPANIES, $89.11, is a buy. The company (Toronto symbol L; Shares outstanding: 338.2 million; Market cap: $30.1 billion; TSINetwork Rating: Above Average; Dividend yield: 1.6%; www.loblaw.ca) launched a new mobile phone app called PC Health in 2020....

2 min read

Pat McKeough

Growth Stocks

Use these updates to enhance your returns

TENNANT CO. $72 is still a hold. The company (New York symbol TNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 18.3 million; Market cap: $1.3 billion; Price-to-sales ratio: 1.3; 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 have rebounded strongly as businesses re-opened following initial COVID-19 shutdowns last year....

2 min read

Pat McKeough

Growth Stocks

Lesser-known Motorola continues to impress

In January 2011, the old Motorola Inc. spun off its cellphone business as a separate firm. The remaining operations, which make police radios and related equipment, became Motorola Solutions. The stock has gained 550% since the split, as it has successfully added other products, like video surveillance systems....

2 min read

Pat McKeough

Growth Stocks

Idexx’s high p/e adds to your risk

IDEXX LABORATORIES INC. $676 is still a hold. The company (Nasdaq symbol IDXX; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 84.9 million; Market cap: $57.4 billion; Price-to-sales ratio: 18.9; No dividends paid; TSINetwork Rating: Average; www.idexx.com) makes equipment that veterinarians use to detect diseases in pets and farm animals.

In the second quarter of 2021, sales jumped 29.6%, to $826.1 million from $637.6 million a year earlier....

1 min read

Pat McKeough

Growth Stocks

Sherwin expands in Europe

SHERWIN-WILLIAMS CO. $303 is a still hold. The company (New York symbol SHW; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 261.9 million; Market cap: $79.4 billion; Price-to-sales ratio: 4.1; Dividend yield: 0.7%; TSINetwork Rating: Above Average; www.sherwin-williams.com) is buying the European industrial coatings business of Sika AG....

1 min read

Pat McKeough

Growth Stocks

Their acquisitions should fuel more gains

Baxter and Agilent are seeing improved sales and earnings as hospitals and research labs start to order new equipment now that the COVID-19 pandemic is easing. Both firms will also benefit from their recent acquisitions.

BAXTER INTERNATIONAL INC....

2 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.