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

Snacking trend fuels Mondelez

MONDELEZ INTERNATIONAL INC. $64 is a buy. The company (Nasdaq symbol MDLZ; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.4 billion; Market cap: $89.6 billion; Price-to-sales ratio: 3.3; Dividend yield: 2.0%; TSINetwork Rating: Above Average; www.mondelezinternational.com) has risen nearly 50% from its March 2020 low as stay-at-home orders increased consumption for its snack food products....

1 min read

Pat McKeough

Growth Stocks

Market surge lifts T. Rowe Price

T. ROWE PRICE GROUP INC. $188 is a buy. The company’s (Nasdaq symbol TROW; Aggressive Growth and Income Portfolios, Finance sector; Shares outstanding: 226.4 million; Market cap: $42.6 billion; Price-to-sales ratio: 6.5; Dividend yield: 2.3%; TSINetwork Rating: Average; www.troweprice.com) fee income rises with the value of the securities it manages....

1 min read

Pat McKeough

Growth Stocks

These picks remain strong despite COVID

Hospitals and research labs had to shift their spending during the early phases of the COVID-19 pandemic to products that helped combat the virus. Now that the pandemic is easing, it’s likely Baxter and Agilent will benefit from improving demand for their non-COVID-19 products.

BAXTER INTERNATIONAL INC....

2 min read

Pat McKeough

Growth Stocks

Park operator expects a better 2021

CEDAR FAIR L.P. $46 is still a hold. The partnership (New York symbol FUN; Income Portfolio, Consumer sector; Units outstanding: 56.7 million; Market cap: $2.6 billion; Price-to-sales ratio: 18.9; Dividend suspended in June 2020; TSINetwork Rating: Average; www.cedarfair.com) owns 11 amusement parks and four water parks....

1 min read

Pat McKeough

Growth Stocks

Strong sales to hospitals spur Philips

PHILIPS ELECTRONICS N.V. ADRs $57 is a buy. The company (New York symbol PHG; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 891.0 million; Market cap: $50.8 billion; Price-to-sales ratio: 2.6; Dividend yield: 1.8%; TSINetwork Rating: Average; www.philips.com) makes industrial health-care products, including X-ray scanners and ultrasound systems, along with consumer goods such as electric shavers and electric toothbrushes.

Philips’ sales in the quarter ended March 31, 2021, rose 3.6%, to 3.83 billion euros from 3.69 billion euros a year earlier (1 euro=$1.48 Canadian)....

1 min read

Pat McKeough

Growth Stocks

These three buys let you tap online growth

The COVID-19 pandemic forced individuals and businesses to move many of their activities online. That shift has helped lift these three leading technology firms to new highs. We continue to hold a high opinion of their prospects, but only aggressive investors should consider buying them right now.

ADOBE INC....

5 min read

Pat McKeough

Growth Stocks

KFC aims to triple its size

YUM! BRANDS INC. $120 is a buy. The company (New York symbol YUM; Aggressive Growth Portfolio; Consumer sector; Shares outstanding: 301.7 million; Market cap: $36.2 billion; Price-to-sales ratio: 6.1; Dividend yield: 1.7%; TSINetwork Rating: Average; www.yum.com) now aims to roughly triple the number of its KFC fried chicken fast-food outlets, from 25,292 to 75,000, in the next few years....

1 min read

Pat McKeough

Growth Stocks

These two are rebounding along with travel

The coronavirus pandemic forced the cancellation of most vacation plans. Now, however, with COVID-19 vaccination numbers rising, the outlook for both these stocks keeps brightening. We see both as buys.

WYNDHAM HOTELS & RESORTS $74.87, is suitable for your new buying....

2 min read

Pat McKeough

Growth Stocks

NortonLifeLock prospers from rising cyber threats

NortonLifeLock has soared over 27% since mid-May 2021 after it reported strong results in the latest quarter. Meantime, the company continues to spend a high 10.5% of its revenue on research. Those costs depress its current earnings but will help it thrive in a rapidly changing industry....

1 min read

Pat McKeough

Growth Stocks

Amazon’s Prime hits a new high

AMAZON.COM INC. $3,231.80 is a buy. The company (Nasdaq symbol AMZN; TSINetwork Rating: Average) (www.amazon.com; Shares o/s: 504.3 million; Market cap: $1.6 trillion; No divds.) now has over 200 million members in its Prime membership program worldwide....

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.