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

State Street rebounds with markets

STATE STREET CORP. $86 is a buy. The company (New York symbol STT; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 343.5 million; Market cap: $29.5 billion; Price-to-sales ratio: 2.5; Dividend yield: 2.6%; TSINetwork Rating: Average; www.statestreet.com) sells accounting and administrative services to operators of mutual funds and pension plans.

Thanks to the rebound in stock market prices and new contract wins, State Street’s revenue in the three months ended June 30, 2021, rose 3.3%, to $3.03 billion from $2.94 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

Profit from Fintech with much less risk

We feel the best way to tap future gains for fintech (the combination of financial services and technology) is with well-established companies such as Broadridge and Dun & Bradstreet. That’s better than focusing on small start-up firms. As well, recent acquisitions by both Broadridge and Dun & Bradstreet should pay off for years to come.

BROADRIDGE FINANCIAL SOLUTIONS INC....

2 min read

Pat McKeough

Growth Stocks

Buy the spinoff, hold the former parent

On November 1, 2016, Arconic spun off its bulk aluminum business (Alcoa) so it could focus on making industrial aluminum products. Investors received one Alcoa share for every three Arconic shares they owned.

Arconic continues to benefit as manufacturing activity recovers from COVID-19 shutdowns....

2 min read

Pat McKeough

Growth Stocks

More savings ahead

RAYTHEON TECHNOLOGIES CORP. $87 is a buy. The company (New York symbol RTX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.5 billion; Market cap: $130.5 billion; Price-to-sales ratio: 2.2; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.rtx.com) took its current form on April 3, 2020, with the merger of United Technologies Corp....

1 min read

Pat McKeough

Growth Stocks

High R&D will power big gains for investors

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

NortonLifeLock targets European leader Avast

Growth by acquisition adds risk—especially with a purchase as big as Avast. However, demand for cybersecurity is now booming; and Avast is very complementary to NortonLifeLock’s current offerings and customer base.

NORTONLIFELOCK, $25.59, is a buy....

1 min read

Pat McKeough

Growth Stocks

These buys are making all the right moves

Long-time readers know that we keep you informed of important news about the stocks we cover. That means highlighting developments or strategies that promise to brighten your prospects. Here are two buys that stand out this month:

SHOPIFY INC., $1,972.01, is a buy....

2 min read

Pat McKeough

Growth Stocks

PagerDuty targets European growth

PAGERDUTY INC., $41.42, is a buy. The company (New York symbol PD; TSINetwork Rating: Extra Risk) (www.pagerduty.com; Shares o/s: 83.6 million; Market cap: $3.4 billion; No dividends paid) has lots of room for expansion internationally. It now generates only around 22% of its revenue outside of the U.S.

Recently, as part of this expansion, PagerDuty announced European service support for its customers in that market....

1 min read

Pat McKeough

Growth Stocks

Domino’s offers a new guarantee

DOMINO’S PIZZA $470.37 (New York symbol DPZ; TSINetwork Rating: Average) (www.dominos.com; Shares o/s: 38.8 million; Market cap: $18.4 billion; Dividend yield: 0.8%) has launched its Domino’s Carside Delivery 2-Minute Guarantee. The idea revolves around the guaranteed delivery of pizzas from the oven to a customer’s car within 2 minutes....

1 min read

Pat McKeough

Growth Stocks

Warner Music signs another star

WARNER MUSIC GROUP, $37.04, is a buy. The company (Nasdaq symbol WMG; TSINetwork Rating: Average) (www.wmg.com; Shares o/s: 510.0 million; Market cap: $18.9 billion; Dividend yield: 1.3%) is now adding to its music library with the purchase of celebrated French DJ David Guetta’s recorded-music catalogue....

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.