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

Tap these two for renewable energy dividends

With their clean, renewable power, these two companies have strong conceptual appeal for investors. But just as important—especially considering the pandemic—is their diverse mix of hydroelectric, wind and solar power. It, along with their long-term contracts, provide them with stable cash flows....

2 min read

Pat McKeough

Growth Stocks

Updating our Aggressive stocks: APA Corp., Restaurant Brands International Inc. and Keysight Technologies Inc.

APA CORP. $19 (www.apacorp.com) remains a hold, but only for aggressive investors. The company produces oil and natural gas from properties in the U.S., Egypt and the U.K. APA and its partner Total SA recently announced a major offshore discovery near South America’s Suriname....

1 min read

Pat McKeough

Growth Stocks

Re-opening will take Starbucks even higher

Starbucks hit a new all-time high of $126.32 on July 23, 2021. Even though it is down slightly since then, the stock is still up over 100% since we first recommended it at $57 in our June 2018 issue.

We’re confident the stock will continue to move higher....

2 min read

Pat McKeough

Growth Stocks

New plant adds flexibility

TEXAS INSTRUMENTS INC. $187 is a buy. The stock (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 923.0 million; Market cap: $172.6 billion; Price-to-sales ratio: 10.3; Dividend yield: 2.2%; TSINetwork Rating: Average; www.ti.com) gives you a stake in this top maker of analog chips....

1 min read

Pat McKeough

Growth Stocks

Chip shortage lessen for Ford

FORD MOTOR CO. $14 is still a hold. The automaker (New York symbol F; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 3.9 billion; Market cap: $54.6 billion; Price-to-sales ratio: 0.4; Dividend suspended in March 2020; TSINetwork Rating: Extra Risk; www.ford.com) has suspended car and truck production at eight of its plants in North America in July 2021 due to an ongoing shortage of computer chips....

1 min read

Pat McKeough

Growth Stocks

Use ADRs to boost your foreign exposure

American Depositary Receipts (ADRs) that trade on New York are a great way for investors to buy some of the world’s top companies. Here are two of our favourite ADRs, but only one is suitable for your new buying.

ABB LTD. ADRs $37 is a buy. The company (New York symbol ABB; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 2.0 billion; Market cap: $74.0 billion; Price-to-sales ratio: 2.6; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.abb.com) is a leading manufacturer of transformers, transmission systems and circuit breakers for electrical utilities....

2 min read

Pat McKeough

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

Testimonials

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Chuck Chakrapani, PhD
Investors Association of Canada
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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

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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.