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.

Read More Close

Growth Stocks Library Archives

Growth Stocks

FedEx lets you ride the online shopping wave

FedEx’s shares have shot up 93% in 2020, as the COVID-19 pandemic prompted consumers to buy more goods online. That has spurred strong demand for the company’s delivery services. In fact, FedEx expects U.S. parcel volumes (for all carriers) will rise to 100 million a day in 2023....

2 min read

Pat McKeough

Growth Stocks

Quaker sees more savings ahead

QUAKER CHEMICAL CORP. $249 is still a buy. The company (New York symbol KWR; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 17.8 million; Market cap: $4.4 billion; Price-to-sales ratio: 4.4; Dividend yield: 0.6%; TSINetwork Rating: Average; www.quakerchem.com) completed its acquisition of rival specialty chemicals maker Houghton International in August 2019....

1 min read

Pat McKeough

Growth Stocks

A COVID vaccine should spur their progress

On April 1, 2020, the old Arconic Inc. split into two new companies: Howmet and Arconic Corp. As a result, each Arconic Inc. share automatically converted to one share of Howmet; investors also received one share of Arconic Corp. for every four shares of Arconic Inc....

2 min read

Pat McKeough

Growth Stocks

Fast-food powers Lamb Weston

LAMB WESTON HOLDINGS INC. $73 is a buy. The company (New York symbol LW, Income Portfolio, Consumer sector; Shares outstanding: 146.1 million; Market cap: $10.7 billion; Price-to-sales ratio: 2.9; Dividend yield: 1.3%; TSINetwork Rating: Average; www.lambweston.com) is a leading producer of frozen french fries, potatoes and other packaged vegetables....

1 min read

Pat McKeough

Growth Stocks

These two will build on their strong start

On April 3, 2020, aerospace products maker Raytheon Technologies Corp. (formerly United Technologies) spun off its Otis (elevators) and Carrier (heating and air conditioning equipment) businesses. For each share investors held, they received 0.5 of a share in the new Otis and 1 share in Carrier.

Both stocks are off to strong starts—Carrier has soared 225%, while Otis is up 52%....

2 min read

Pat McKeough

Growth Stocks

The pandemic fuels Stanley’s gains

STANLEY BLACK & DECKER INC. $186 is a buy. The company (New York symbol SWK; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 160.2 million; Market cap: $28.8 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.8%; TSINetwork Rating: Average; www.stanleyblackanddecker.com) is one of the world’s largest makers of hand and power tools for consumers....

1 min read

Pat McKeough

Growth Stocks

Pluton brings Xbox security to PCs

MICROSOFT CORP. $214 is a buy. The company (Nasdaq symbol MSFT; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 7.6 billion; Market cap: $1.6 trillion; Price-to-sales ratio: 11.0; Dividend yield: 1.0%; TSINetwork Rating: Above Average; www.microsoft.com) has developed a new security technology that chipmakers can embed in their PC processors.

Called Pluton, this new technology will make it harder for online intruders to access sensitive information like passwords....

1 min read

Pat McKeough

Growth Stocks

These two leaders are set to hit new highs

Fair Isaac and Broadridge Financial are both positioned to keep doing well during the pandemic: since March of this year, Fair Isaac is up 167.0% to an all-time high; and Broadridge has jumped 78.0%, also to new highs. We think both have room to move higher.

FAIR ISAAC CORP....

2 min read

Pat McKeough

Growth Stocks

Activist highlights ACI’s prospects

ACI WORLDWIDE, $24.32, is a buy. The company (Nasdaq symbol ACIW; TSINetwork Rating: Extra Risk) (www.aciworldwide.com; Shares o/s: 116.1 million; Market cap: $2.9 billion; No divds.) has attracted increased interest from activist investor Starboard Value LP....

1 min read

Pat McKeough

Growth Stocks

These industrials are weathering the virus

The coronavirus pandemic presents both of these industrials with unique challenges. However, each has streamlined operations and is prepared to weather this crisis to prosper in the future. We see both stocks as buys.

GOODYEAR TIRE & RUBBER $10.65 (Nasdaq symbol GT; TSINetwork Rating: Extra Risk) (www.goodyear.com; Shares outstanding: 233.1 million; Market cap: $2.5 billion; No dividends paid) is one of the world’s largest tire makers....

2 min read

Pat McKeough

Testimonials

The cornerstones of Pat’s strategy–value, diversification and timelines–make his newsletter, The Successful Investor, highly profitable while minimizing risk. His advice is no-nonsense, down-to-earth and based on solid research. You’ll know what to invest in and what to avoid.

Chuck Chakrapani, PhD
Investors Association of Canada
The older I get the better dividends look. For retirees and would-be retirees who want to sleep at night, I can’t think of a better source of information on reliable growing dividend income than Pat McKeough’s newsletter, Dividend Advisor.

Jonathan Chevreau
Financial Post Columnist
As a manager of more than $500 million in mutual funds, I have access to the best brokerage research available in this country. But I still take time to read Pat McKeough’s premium newsletters

John Sartz
I appreciate the 25 years of above market returns I received by following your advice. at least 95% of my investment decisions were based on TSI recommendations.

Chuck J.
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

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.