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.

Read More Close

Growth Stocks Library Archives

Growth Stocks

1Life adds a major U.S. health insurer as a client

1Life recently paid $2.1 billion for Iora Health, a primary-care group aimed at serving Medicare populations. The Iora acquisition not only extends 1Life’s geography reach around the U.S. to a combined 28 markets, but across all ages of patients. As well, the purchase is already paying off with the signing of a big new client.

1LIFE HEALTHCARE, $21.86, is a buy. The company (Nasdaq symbol ONEM; TSINetwork Rating: Extra Risk) (www.onemedical.com; Shares outstanding: 193.1 million; Market cap: $4.4 billion; No dividend) is a membership-based provider of primary health care through its One Medical technology platform....

1 min read

Pat McKeough

Growth Stocks

QSR enters key niche

RESTAURANT BRANDS INTERNATIONAL, $57.83, is a buy. The company (New York symbol QSR; TSINetwork Rating: Average) (www.rbi.com; Shares o/s: 478.0 million; Market cap: $27.6 billion; Divd. yield: 3.7%) has agreed to buy privately held Firehouse Subs for $1 billion.

Florida-based Firehouse Subs, which was founded in 1994 by brothers and former firefighters Chris and Robin Sorensen, has nearly 1,200 locations across the U.S....

1 min read

Pat McKeough

Growth Stocks

Alcon builds on its global dominance

Swiss pharmaceutical giant Novartis spun off Alcon in 2019. And as we’ve said many times before, spinoffs are the closest thing you can find to a sure thing, regardless of the market’s rise and fall.

The stock is already up over 108% from its March 2020 lows, but we think it can go much higher....

2 min read

Pat McKeough

Growth Stocks

New plan cuts Thomson’s costs

THOMSON REUTERS CORP. $150 remains a buy. The company (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 497.1 million; Market cap: $74.6 billion; Price-to-sales ratio: 9.6; Dividend yield: 1.3%; TSINetwork Rating: Above Average; www.thomsonreuters.com) sells specialized information and software to the legal, tax and accounting fields.

Thomson’s revenue in the third quarter of 2021 rose 5.8%, to $1.53 billion from $1.44 billion a year earlier (all amounts except share price and market cap in U.S....

1 min read

Pat McKeough

Growth Stocks

Here are key updates on your holdings

RESTAURANT BRANDS INTERNATIONAL INC. $72 is a buy. The company (Toronto symbol QSR; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 460.3 million; Market cap: $33.1 billion; Price-to-sales ratio: 5.0; Dividend yield: 3.7%; TSINetwork Rating: Average; www.rbi.com) is the world’s third-largest fast-food operator....

2 min read

Pat McKeough

Growth Stocks

Fake meat sales continue to slow

MAPLE LEAF FOODS INC. $31 is still a hold. The company (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 123.9 million; Market cap: $3.8 billion; Price-to-sales ratio: 0.9; Dividend yield: 2.3%; TSINetwork Rating: Average; www.mapleleaffoods.com) has expanded beyond its traditional fresh and processed meat businesses in the past few years....

1 min read

Pat McKeough

Growth Stocks

Metro aims for more buybacks

METRO INC. $65 is a buy. The company (Toronto symbol MRU; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 244.1 million; Market cap: $15.9 billion; Price-to-sales ratio: 0.9; Dividend yield: 1.5%; TSINetwork Rating: Average; www.metro.ca) operates 950 grocery stores and 650 drugstores (mainly under the Jean Coutu banner), in Quebec, Ontario and New Brunswick.

The stock held up well during the pandemic as governments designated its supermarkets and drugstores essential services for consumers stocking up on food and other goods....

1 min read

Pat McKeough

Growth Stocks

RioCan sales will fund new projects

RIOCAN REAL ESTATE INVESTMENT TRUST $23 is a buy. The REIT (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 317.8 million; Market cap: $7.3 billion; Price-to-sales ratio: 6.3; Distribution yield: 4.2%; TSINetwork Rating: Average; www.riocan.com) owns all or part of 214 shopping centres and other properties across Canada.

The REIT expects to spend about $500 million on new projects in 2021....

1 min read

Pat McKeough

Growth Stocks

Aggressive pick can still go higher

With the April 2020 issue, we promoted real estate services firm FirstService to our Aggressive Growth Portfolio from its original spot as a Power Growth Investor pick. Since then, the stock has jumped 87% as the COVID-19 pandemic prompted homeowners and businesses to upgrade their properties....

4 min read

Pat McKeough

Growth Stocks

Updating our Aggressive stocks: Diebold Nixdorf Inc., NCR Corp. and Keysight Technologies Inc.

DIEBOLD NIXDORF INC. $10 (www.dieboldnixdorf.com) is still hold, but only for aggressive investors. The company is the world’s biggest maker of automated teller machines (ATMs). The stock has rebounded strongly from its March 2020 low of $2.80....

1 min read

Pat McKeough

Testimonials

The cornerstones of Pat’s strategy–value, diversification and timelines–make his newsletter, The Successful Investor, highly profitable while minimizing risk. His advice is no-nonsense, down-to-earth and based on solid research. You’ll know what to invest in and what to avoid.

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.

Jonathan Chevreau
Financial Post Columnist
As a manager of more than $500 million in mutual funds, I have access to the best brokerage research available in this country. But I still take time to read Pat McKeough’s premium newsletters

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.

Chuck J.
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.