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

Click-and-collect helps Metro adapt

METRO INC. $58 is a buy. The company (Toronto symbol MRU; Aggressive Growth Portfolio, Consumer sector; Shares o/s: 248.4 million; Market cap: $14.4 billion; Price-to-sales ratio: 0.8; Dividend yield: 1.7%; TSINetwork Rating: Average; www.metro.ca) operates 950 grocery stores and 650 drugstores (mainly under the Jean Coutu banner), in Quebec, Ontario and New Brunswick.

In the past few years, Metro has expanded its e-commerce and home delivery services....

1 min read

Pat McKeough

Growth Stocks

New rules could hurt investors

HOME CAPITAL GROUP INC. $30 remains a hold for aggressive investors. The stock (Toronto symbol HCG; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 53.0 million; Market cap: $1.6 billion; Price-to-sales ratio: 3.2; Dividend suspended in May 2017; TSINetwork Rating: Speculative; www.homecapital.com) lets you tap a mortgage lender serving borrowers who fail to meet the stricter standards of big banks and traditional lenders.

Canada’s banking regulator is now proposing to toughen the rules for uninsured mortgages....

1 min read

Pat McKeough

Growth Stocks

Hope you saw our Bulletin

One of the key features of our monthly newsletters is the weekly Hotline we send to subscribers. This keeps them up-to-date on any big news or price moves in between newsletters.

And what’s more, we also, from time to time, issue Special Bulletins for events that just can’t wait for the monthly issue or even the weekly Hotline.

We sent just such a Special Bulletin to Successful Investor subscribers on Wednesday, January 27, 2021, advising a quick sale of BLACKBERRY LTD $11.27 (Toronto symbol BB).

The stock shot up 26% that day....

1 min read

Pat McKeough

Growth Stocks

Vaccines will boost McKesson

MCKESSON CORP. $188 is a buy for aggressive investors. The company (New York symbol MCK; Aggressive Growth Portfolio, Consumer sector; Shares o/s: 191.8 million; Market cap: $36.1 billion; Price-to-sales ratio: 0.1; Dividend 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

Lockdowns helped Sherwin prosper

SHERWIN-WILLIAMS CO. $241 is a still hold. The company (New York symbol SHW; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 267.6 million; Market cap: $64.5 billion; Price-to-sales ratio: 3.5; Dividend yield: 0.9%; TSINetwork Rating: Above Average; www.sherwin-williams.com) continues to benefit from strong demand for its paints as the COVID-19 pandemic encourages people to work on home improvement projects.

In the quarter ended December 31, 2020, Sherwin’s sales rose 9.1%, to $4.15 billion from $4.04 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

They’re poised for post-pandemic gains

Genuine Parts and Snap-On both stand to gain as COVID-19 shutdowns ease and car sales rebound. However, we feel Genuine’s businesses outside of auto parts and wider geographic presence better protects it from possible future shutdowns.

GENUINE PARTS CO....

2 min read

Pat McKeough

Growth Stocks

This toolmaker’s outlook remains bright: Stanley Black & Decker

Stanley has jumped over 177% from its March 2020 low of $70 as COVID-19 continues to spur interest in do-it-yourself projects and demand for tools. At the same time, a cost-cutting plan is boosting the company’s earnings. You can expect the stock to continue climbing in 2021.

STANLEY BLACK & DECKER INC....

1 min read

Pat McKeough

Growth Stocks

Broadridge taps outsourcing trend

BROADRIDGE FINANCIAL SOLUTIONS INC. $149 is a buy. The company (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares o/s: 115.2 million; Market cap: $17.2 billion; Price-to-sales ratio: 3.7; Divd. yield: 1.6%; TSINetwork Rating: Average; www.broadridge.com) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing.

In its fiscal 2021 second quarter, ended December 31, 2020, revenue rose 8.9%, to $1.05 billion from $968.7 million a year earlier....

1 min read

Pat McKeough

Growth Stocks

Big merger creates a new leader

IFF has now completed its merger with the nutrition and biosciences business of DuPont. This follows another major purchase—the company’s 2018 acquisition of Israeli flavouring maker Frutarom.

As we often remind investors, using acquisitions to expand adds risk....

4 min read

Pat McKeough

Growth Stocks

Shopify is planning to add to your 2,094% gain

Shopify has made enormous business progress in its less than six years as a public company. More important for our subscribers, however, is the stock’s 2,093.7% gain since we first recommended it just four years ago at $66.17 in our February 2017 issue. Meanwhile, it’s making key moves to stay ahead of its rivals.

SHOPIFY INC....

1 min read

Pat McKeough

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Investors Association of Canada
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Subscriber since 1996. Inner Circle Member Since 2006
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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.