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

Updating your Aggressive stocks: Restaurant Brands Int’l Inc., Saputo Inc. and RioCan Real Estate Investment Trust

RESTAURANT BRANDS INTERNATIONAL INC. $80 (www.rbi.com) is a buy. The company 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). Restaurant Brands is now preparing to launch its first Popeye’s restaurant in the U.K....

1 min read

Pat McKeough

Growth Stocks

Investors will gain from lower costs

FINNING INTERNATIONAL INC. $31 is a buy. The company (Toronto symbol FTT; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 162.4 million; Market cap: $5.0 billion; Price-to-sales ratio: 0.8; Dividend yield: 2.6%; TSINetwork Rating: Above Average; www.finning.com) sells and services Caterpillar-brand heavy equipment in Western Canada, but also Chile, Argentina, Bolivia, the U.K....

1 min read

Pat McKeough

Growth Stocks

Pick Stantec for U.S. infrastructure profits

The Biden administration and Republican congressional leaders recently agreed to spend $1.2 trillion U.S. on various infrastructure projects. That’s good news for engineering firms Stantec and SNC, both of which have substantial U.S. businesses. However, we continue to recommend Stantec over SNC for your new buying.

STANTEC INC....

2 min read

Pat McKeough

Growth Stocks

CGI hits a new high

CGI INC., $114 is your #1 Aggressive buy for 2021. The company (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 247.9 million; Market cap: $28.3 billion; Price-to-sales ratio: 2.3; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) is Canada’s largest provider of computer-outsourcing services....

1 min read

Pat McKeough

Growth Stocks

Here is a good pick for post-pandemic gains

Shares of Archer Daniels Midland hit a record high of $69 in early June. That’s because its new focus on value-added products continues to lift its earnings. We expect the shares will resume their upward trend as restaurants re-open and rising automobile travel spurs ethanol demand.

ARCHER DANIELS MIDLAND CO....

2 min read

Pat McKeough

Growth Stocks

Lower costs spur McKesson

MCKESSON CORP. $189 is a buy for aggressive investors. The company (New York symbol MCK; Aggressive Growth Portfolio, Consumer sector; Shares o/s: 158.2 million; Market cap: $29.9 billion; P-to-S ratio: 0.1; Divd. yield 0.9%; TSINetwork Rating: Above Average; www.mckesson.com) is the largest wholesale drug distributor in the U.S....

1 min read

Pat McKeough

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

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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.