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

Spicemaker adds capacity

MCCORMICK & CO. INC. $86 remains a hold. The company (New York symbol MKC; Income Portfolio, Consumer sector; Shares outstanding: 267.0 million; Market cap: $23.0 billion; Price-to-sales ratio: 3.9; Dividend yield: 1.6%; TSINetwork Rating: Average; www.mccormick.com) continues to benefit from strong consumer sales of its spices and seasonings as more people cook at home due to the COVID-19 pandemic....

1 min read

Pat McKeough

Growth Stocks

Investors continue to profit from this split

On April 3, 2020, Raytheon Technologies (see box), formerly United Technologies (old symbol UTX), spun off its Otis and Carrier (heating and air conditioning equipment) businesses as separate firms. For each UTX share they held, investors received 0.5 of a share in Otis and 1 share in Carrier.

So far, Carrier has shot up 217% while Otis is up a stellar 79%....

2 min read

Pat McKeough

Growth Stocks

These tech superstars also have appeal

Big technology stocks like Alphabet (see page 61) and the three we analyze below have been superstars in the past year as COVID-19 sparked demand for their products and services. Even though the pandemic is easing, we still like their long-term outlooks. However, only two of the three are buys right now.

APPLE INC....

5 min read

Pat McKeough

Growth Stocks

Nvidia cuts its crypto risk

NVIDIA CORP. $762 remains a buy for aggressive investors. The company (Nasdaq symbol NVDA; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 623.0 million; Market cap: $474.7 billion; Price-to-sales ratio: 24.7; Dividend yield: 0.1%; TSINetwork Rating: Average; www.nvidia.com) is a leading designer of 3D-capable video chips.

Nvidia’s chips are also a favourite of cryptocurrency miners, who need powerful computers to verify online transactions....

1 min read

Pat McKeough

Growth Stocks

Alphabet continues to impress us

Alphabet (the parent company of Google) was our choice for top Aggressive Buy in 2016, 2017 and 2018. After choosing Broadridge as the top Aggressive pick in 2019, we returned to Alphabet again for 2020 and 2021. The stock is up roughly 240% since 2016, including a 44% gain this year alone—and we’re only half through it!

The COVID-19 pandemic helped draw more users to Google’s websites and strengthened its hold on the online advertising market....

5 min read

Pat McKeough

Growth Stocks

New markets will add to your 97%+ gains

Fair Isaac and Broadridge Financial are both positioned to keep doing well during the pandemic: since March of last year, Fair Isaac is up 185.3%; and Broadridge has jumped 96.8% to a new high. We think both have room to move even higher.

FAIR ISAAC CORP., $493.60 (New York symbol FICO; TSINetwork Rating: Average) (www.fairisaac.com; Shares outstanding: 29.2 million; Market cap: $14.4 billion; No dividends paid) is best known for its FICO Scores software....

2 min read

Pat McKeough

Growth Stocks

Stitch Fix’s AI-powered styling has returned you 130%

Stitch Fix has gained 129.8% for our subscribers since we first recommended it in Power Growth Investor in the January 2020 issue at $25.70. The company has benefited from increased demand during the pandemic. But its business model and leading-edge technology set it up for even more gains....

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 that promise to brighten your prospects. Here are two buys with new developments that stand out this month:

TWILIO INC., $334.40, is a buy. The company (Nasdaq symbol TWLO; TSINetwork Rating: Extra Risk) (www.twilio.com; Shares outstanding: 162.4 million; Market cap: $57.9 billion; No dividends paid) has just agreed to acquire Seattle-based business-texting startup Zipwhip for $850 million.

Founded in 2007, Zipwhip works with wireless carriers to enable hundreds of millions of business landlines to receive and send text messages....

2 min read

Pat McKeough

Growth Stocks

These leaders let you tap new tech trends

Both Veoneer and Garmin have quickly rewarded our subscribers since we first recommended them in late 2020. Garmin is up 36.4% since we first looked at it in the September issue of Power Growth Investor at $103.99. Veoneer is up 32.8% since we picked it in our November issue at $17.51....

2 min read

Pat McKeough

Growth Stocks

Its new products offset its COVID constraints

Swiss pharmaceutical giant Novartis spun off Alcon just last year. 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 ups and downs.

The stock is already up over 80% from its March 2020 lows, but we think it can go much higher....

2 min read

Pat McKeough

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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.