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

Restaurant Brands targets key market

RESTAURANT BRANDS INTERNATIONAL $67.78 is a buy. The company (New York symbol QSR; TSINetwork Rating: Average) (www.rbi.com; Shares outstanding: 478.0 million; Market cap: $32.4 billion; Dividend yield: 3.1%) is now preparing to launch its first Popeye’s restaurant in the U.K....

1 min read

Pat McKeough

Growth Stocks

Twilio sells into rapidly expanding segment

We added Twilio to Power Growth Investor last year, and it has put on a stellar performance for our readers. Twilio is up 54.3% since its inaugural June 2020 appearance in PGI at $187.42.

The company benefited from increased demand during the pandemic....

2 min read

Pat McKeough

Growth Stocks

Goodyear’s big acquisition just adds to your prospects

The pandemic presented this industrial stock with unique challenges. However, the company remains profitable and is well positioned to keep weathering the crisis and prosper anew. We see the stock as a buy.

GOODYEAR TIRE & RUBBER $18.97 (Nasdaq symbol GT; TSINetwork Rating: Extra Risk) (www.goodyear.com; Shares o/s: 233.3 million; Market cap: $4.6 billion; No divds.) is one of the world’s largest tire makers....

1 min read

Pat McKeough

Growth Stocks

Time to take profits

FACEBOOK INC. $313.59 (Nasdaq symbol FB; TSINetwork Rating: Above Average) (facebook.com; Shares o/s: 2.4 billion; Market cap: $878.9 billion; No divd.) is now up 52.9% since we first recommended it in our June 2020 issue at $205.10.

But we see some significant challenges looming for the company, and we think now is a good time to sell and take profits.

Foremost among the challenges is a momentum-gathering trend towards consumer privacy....

1 min read

Pat McKeough

Growth Stocks

Finning’s outlook is getting brighter

Finning’s shares have more than doubled from their low of $15 in March 2020. That recovery reflects the rebounding global economy, and increased demand for commodities as well as Finning’s equipment. The company’s cost-cutting should help lift profits as commodity prices enter what could be a multi-year upswing.

FINNING INTERNATIONAL INC....

2 min read

Pat McKeough

Growth Stocks

Here are key updates on your holdings

RESTAURANT BRANDS INTERNATIONAL INC. $81 is a buy for aggressive investors. The company (Toronto symbol QSR; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 465.5 million; Market cap: $37.7 billion; Price-to-sales ratio: 5.0; Dividend yield: 3.2%; TSINetwork Rating: Average; www.rbi.com) has 27,025 fast-food outlets in over 100 countries: 18,625 Burger King, 4,949 Tim Hortons (coffee and donuts), and 3,451 Popeyes Louisiana Kitchen (fried chicken).

Popeyes now plans to open its first location in the U.K....

2 min read

Pat McKeough

Growth Stocks

Strong backlog a plus for Stantec

STANTEC INC. $54 is a buy. The stock (Toronto symbol STN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 111.6 million; Market cap: $6.0 billion; Price-to-sales ratio: 1.7; Dividend yield: 1.2%; TSINetwork Rating: Extra Risk; www.stantec.com) offers you exposure to this leading seller of consulting, project-delivery, design and technology services....

1 min read

Pat McKeough

Growth Stocks

Two aggressive buys for post-pandemic gains

Readers continue to benefit from our April 2020 decision to add these two real estate firms to our Successful Investor coverage. Since then, FirstService has jumped 48%, while Colliers has gained 32%. We feel both can go on to post more gains as businesses re-open and re-purpose their properties in response to the pandemic.

FIRSTSERVICE CORP....

2 min read

Pat McKeough

Growth Stocks

Thomson’s new focus will pay off

Thomson Reuters’ shares have soared, rising about 70% since the company began divesting itself of its financial information business (Refinitiv).

Thomson is putting the proceeds of the Refinitiv sale into its remaining legal, tax and other specialized information businesses....

4 min read

Pat McKeough

Growth Stocks

Gain from Metro’s shift

METRO INC., $56.54, is a buy. The company (Toronto symbol MRU; Shares o/s: 245.5 million; Market cap: $13.8 billion; TSINetwork Rating: Average; Yield: 1.8%; www.metro.ca) operates 950 grocery stores and 650 drugstores, in Quebec, Ontario and New Brunswick.

The retailer continues to benefit as consumers eat more meals at home during the COVID-19 pandemic instead of going to restaurants....

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.