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

Couche-Tard enters key market

ALIMENTATION COUCHE-TARD $44.36 is a buy. This established retailer (Toronto symbol ATD.B; TSINetwork Rating: Average) (www.couchetard.com; Shares outstanding: 1.11 billion; Market cap: $50.4 billion; Dividend yield: 0.6%) operates 11,988 convenience stores across North America and Europe.

The company has now agreed to buy Convenience Retail Asia for $360 million....

1 min read

Pat McKeough

Growth Stocks

Alcon sets you up to prosper from key trends

Swiss pharmaceutical giant Novartis spun off Alcon just last year. And as we’ve said many times before, spinoffs are the closest thing you can find to a sure thing, regardless of the market’s ups and downs.

The stock is already up over 60% from its March 2020 lows, but we think it can go much higher....

2 min read

Pat McKeough

Growth Stocks

This Power Buy is ready for whichever vaccines work

Thermo Fisher keeps soaring for our readers—it’s up 39.4% since we first recommended it in our May 2020 issue at $325.83. Thermo Fisher doesn’t make vaccines. But it does provide key equipment that will be needed regardless of whose vaccines succeed. Thermo Fisher is a Power Buy for our Power Growth Investors.

THERMO FISHER SCIENTIFIC INC....

1 min read

Pat McKeough

Growth Stocks

These plans will boost your 53% gain

This leading software firm benefits from the significant number of people working from home during the pandemic—in fact, the stock is up a stellar 53% for our subscribers over the past year. We expect the remote-work trend to continue past the COVID-19 crisis and to spur rising demand for Adobe’s digital conferencing software and other applications....

2 min read

Pat McKeough

Growth Stocks

Restaurant closures hurt Saputo

SAPUTO INC. $35 is still a hold. The company (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 408.7 million; Market cap: $14.3 billion; Price-to-sales ratio: 1.0; Dividend yield: 2.1%; TSINetwork Rating: Average; www.saputo.com) is Canada’s largest producer of dairy products, including milk, butter and cheese....

1 min read

Pat McKeough

Growth Stocks

Restaurant Brands shifts focus to drive-thru

Restaurant Brands continues to rebound since falling to $36 in March. The stock should go higher as more of its stores reopen. A new plan to install more drive-thru lanes should also boost its growth.

RESTAURANT BRANDS INTERNATIONAL INC. $75 is a buy. The company (Toronto symbol QSR; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 465.5 million; Market cap: $34.9 billion; Price-to-sales ratio: 4.5; Dividend yield: 2.8%; TSINetwork Rating: Average; www.rbi.com) is the world’s third-largest fast-food company after McDonald’s (No....

1 min read

Pat McKeough

Growth Stocks

High debt load still a big risk factor

BOMBARDIER INC. remains a hold for aggressive investors. The company (Toronto symbols BBD.A $0.44 and BBD.B $0.295; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 2.4 billion; Market cap: $744 million; Price-to-sales ratio: 0.05; Divd....

1 min read

Pat McKeough

Growth Stocks

These safety-conscious stocks remain buys

OVINTIV INC., $12.64, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 259.9 million; Market cap: $3.3 billion; TSINetwork Rating: Average; Dividend yield: 3.9%) operates three core properties: Montney (B.C.), Anadarko (Oklahoma) and Permian (Texas)....

2 min read

Pat McKeough

Growth Stocks

Loblaw widens its scope

LOBLAW COMPANIES, $66.13, is a buy. The retailer (Toronto symbol L; Shares outstanding: 356.9 million; Market cap: $23.5 billion; TSINetwork Rating: Above Average; Dividend yield: 1.9%; www.loblaw.ca) aims to boost your returns with new investments outside of its core businesses....

1 min read

Pat McKeough

Growth Stocks

CP links with blockchain

CANADIAN PACIFIC RAILWAY $409.94, is a buy. The company (Toronto symbol CP; shares outstanding: 134.5 million; Market cap: $56.7 billion; Rating: Above Average; Dividend yield: 0.9%) has formally joined TradeLens, a blockchain-based collaboration between IBM and Danish global shipping giant Maersk.

Blockchain is typically associated with Bitcoin....

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.