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

Garmin aims for bigger branding

GARMIN LTD., $135.43, is a buy. The company (New York symbol GRMN; TSINetwork Rating: Extra Risk) (Shares outstanding: 192.3 million; Market cap: $25.8 billion; Dividend yield: 2.0%) makes GPS devices and software for five different markets: fitness, outdoors, auto, aviation, and marine.

Garmin has now transferred the listing of its shares from Nasdaq to the New York Stock Exchange (NYSE)....

1 min read

Pat McKeough

Growth Stocks

Eli Lilly’s pipeline promises you big returns

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

Steris stays on top

STERIS PLC, $229.06, is a buy. The firm (New York symbol STE; TSINetwork Rating: Extra Risk) (www.steris.com; Shares outstanding: 100.0 million; Market cap: $22.7 billion; Dividend yield: 0.8%) sells sterilization equipment, surgical tables, and other products and services used in hospitals and laboratories.

In the quarter ended September 30, 2021, Steris’s revenue jumped 58.3%, to $1.20 billion from $756.1 million a year earlier....

1 min read

Pat McKeough

Growth Stocks

ADT expands cross-selling options

ADT keeps signing and retaining security customers. Additions to the company’s range of services are a key driver of that growth. They include its new smart-home offerings in partnership with Google-parent Alphabet. Now, through its acquisition of Sunpro Solar, ADT will be able to cross-sell an entirely new product to its existing clients....

2 min read

Pat McKeough

Growth Stocks

Bombardier’s high debt is a concern

BOMBARDIER INC. is a hold. The company (Toronto symbols BBD.A $1.83 and BBD.B $1.77; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 2.4 billion; Market cap: $4.3 billion; Price-to-sales ratio: 0.5; Dividend suspended in February 2015; TSINetwork Rating: Speculative; www.bombardier.com) now focuses solely on making private luxury and business jet planes following the January 2021 sale of its passenger railcar business to France’s Alstom SA.

The new focus is now paying off, particularly as the COVID-19 pandemic has prompted business executives to avoid commercial airlines....

1 min read

Pat McKeough

Growth Stocks

Higher oil trims ShawCor’s losses

SHAWCOR LTD. $4.93 is still a buy, but only for highly aggressive investors. The company (Toronto symbol SCL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 70.5 million; Market cap: $347.6 million; Price-to-sales ratio: 0.3; Dividend suspended in March 2020; TSINetwork Rating: Average; www.shawcor.com) makes sealants and coatings that keep oil and gas pipelines from rusting....

1 min read

Pat McKeough

Growth Stocks

Their rising backlogs cut your risk

The re-opening of the economy is spurring strong demand for heavy equipment from these two Caterpillar dealers. Their strong order backlogs also help cut any short-term risk new COVID-19 variants may pose.

FINNING INTERNATIONAL INC. $33 is a buy. The company’s (Toronto symbol FTT; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 159.7 million; Market cap: $5.3 billion; Price-to-sales ratio: 0.7; Dividend yield: 2.7%; TSINetwork Rating: Above Average; www.finning.com) sells and services Caterpillar-brand heavy equipment in Western Canada but also Chile, Argentina, Bolivia, the U.K....

2 min read

Pat McKeough

Growth Stocks

Cash in on the hybrid work trend

COLLIERS INTERNATIONAL GROUP INC. $181 remains a buy for aggressive investors. This company (Toronto symbol CIGI; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 42.7 million; Market cap: $7.7 billion; Price-to-sales ratio: 1.6; 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 assets and secure financing.

The company recently launched Colliers SmartFlex, a new computer application that makes its easier to locate and evaluate available office space in over 90 markets....

1 min read

Pat McKeough

Growth Stocks

Helping clients go green spurs Stantec

Stantec’s shares are up 70% since the start of 2021 as construction projects resumed following 2020 COVID-19 lockdowns.

Even after that jump, the stock still has plenty of growth ahead as governments spend more on infrastructure. Stantec is also helping businesses improve the environmental impact of their structures as they face pressure from institutional investors to lift their ESG (environmental, social and governance) scores.

STANTEC INC....

2 min read

Pat McKeough

Growth Stocks

Key acquisition to spur post-pandemic gains

Baxter’s shares are down about 15% since hitting $92 in April 2020. That’s largely because hospitals postponed elective surgical procedures due to the COVID-19 pandemic. Now that the pandemic is easing, demand for its products is rebounding. The company’s upcoming purchase of hospital equipment maker Hill-Rom should also set it up for more growth.

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.