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

This fintech star still has room to rise

PayPal has soared 460% in the past five years. That stunning success is due to two main factors: its spin-off from eBay has helped to draw new investors; and there’s been soaring demand for electronic payments as more consumers buy goods online during the COVID-19 pandemic....

2 min read

Pat McKeough

Growth Stocks

Three more updates you need to know

NEWELL BRANDS INC. $17 remains a hold. The company (Nasdaq symbol NWL; Income Portfolio, Consumer sector; Shares outstanding: 424.3 million; Market cap: $7.2 billion; Price-to-sales ratio: 0.8; Dividend yield: 5.4%; TSINetwork Rating: Average; www.newellbrands.com) recently launched a plastic food storage container that uses a silver-based coating to kill harmful bacteria....

2 min read

Pat McKeough

Growth Stocks

Upcoming merger gives IFF an edge

The COVID-19 pandemic continues to prompt consumers to eat more of their meals at home, which is good news for these two firms that supply them with vital ingredients. Note that for your new buying, we prefer IFF, which should see substantial gains from its upcoming deal with DuPont....

2 min read

Pat McKeough

Growth Stocks

Virus hurts Teradata’s prospects

TERADATA CORP. $19 is still a hold. The company (New York symbol TDC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 109.0 million; Market cap: $2.1 billion; Price-to-sales ratio: 1.1; No dividends paid; TSINetwork Rating: Average; www.teradata.com) makes computers and software to capture and store large amounts of data for individual businesses—its clients....

1 min read

Pat McKeough

Growth Stocks

COVID-19 has helped lift them to new highs

These two stocks are trading close to their all-time highs, despite disruptions caused by COVID-19. That’s because both companies supply vital products to their corporate and government clients. Recent acquisitions also brighten their long-term prospects.

MOTOROLA SOLUTIONS INC....

2 min read

Pat McKeough

Growth Stocks

Cedar’s cash burn still a concern

CEDAR FAIR L.P. $25 is still a hold. The partnership (New York symbol FUN; Income Portfolio, Consumer sector; Units outstanding: 56.7 million; Market cap: $1.4 billion; Price-to-sales ratio: 1.4; Dividend suspended in June 2020; TSINetwork Rating: Average; www.cedarfair.com) owns 11 amusement parks and four water parks....

1 min read

Pat McKeough

Growth Stocks

These niche techs brighten your prospects

The two techs we feature below are trading at close to all-times highs. They should move higher still. That’s because they’re leaders in niche markets seeing strong growth.

AGILENT TECHNOLOGIES INC. $102 is a buy. The company (New York symbol A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 308.3 million; Market cap: $31.4 billion; Price-to-sales ratio: 6.0; Dividend yield: 0.7%; TSINetwork Rating: Average; www.agilent.com) makes specialized testing equipment for medical research laboratories and industrial clients....

2 min read

Pat McKeough

Growth Stocks

China may block this big acquisition

NVIDIA CORP. $505 is a buy. The company (Nasdaq symbol NVDA; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 609.0 million; Market cap: $307.5 billion; Price-to-sales ratio: 23.9; Dividend yield: 0.1%; TSINetwork Rating: Average; www.nvidia.com) recently agreed to buy U.K.-based Arm Holdings....

1 min read

Pat McKeough

Growth Stocks

Profit from the work-from-home trend

The shift to remote work due to the COVID-19 pandemic has helped boost the shares of these two software makers. Their products help connect workers and guard confidential data. We feel the shares will move higher still. However, you should only consider them as suitable investments if you can accept their higher risk.

ADOBE INC....

2 min read

Pat McKeough

Growth Stocks

Veoneer links up with chip giant Qualcomm

This 2018 spinoff makes advanced driver-assistance and autonomous driving software and systems. The company is now partnering with computer-chip giant Qualcomm. The two aim to develop the software and chips necessary for advanced driver assistance and autonomous driving vehicle platforms....

2 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.