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

Boston Scientific targets key market

BOSTON SCIENTIFIC CORP., $38.88, is a buy. The company (New York symbol BSX; TSINetwork Rating: Average) (www.bostonscientific.com; Shares outstanding: 1.4 billion; Market cap: $55.1 billion; No dividends paid) is now buying the global surgical business of Lumenis Ltd....

1 min read

Pat McKeough

Growth Stocks

Rebranding is just part of its plan

TRAVEL + LEISURE CO. $65.11 (New York symbol TNL; TSINetwork Rating: Extra Risk) (www.travelandleisureco.com; Shares o/s: 85.9 million; Market cap: $5.4 billion; Yield: 1.8%) is the new name for Wyndham Destinations after its recent acquisition of the Travel + Leisure brand from Meredith Corp....

1 min read

Pat McKeough

Growth Stocks

Disney+ on target to meet its goal

WALT DISNEY CO. $195.24 (New York symbol DIS; TSINetwork Rating: Above Average) (www.disney.com; Shares o/s: 1.8 billion; Market cap: $352.6 billion; No current dividend) has now soared to record highs. It’s currently up 32.9% from when we first recommended the shares in our December 2019 issue at $146.93.

The main reason for the price jump is that flagship streaming service Disney+ is growing at a rapid rate and the company is on track to meet its goal of amassing 260 million subscriber worldwide by 2024....

1 min read

Pat McKeough

Growth Stocks

Broadridge’s opportunities keep growing

Broadridge Financial is positioned to keep doing well during the pandemic. From March of last year, the stock has jumped to new all-time highs, and is now up 80.6%. Meantime, we think this Power Buy is poised to keep moving even higher.

BROADRIDGE FINANCIAL SOLUTIONS $146.75 (New York symbol BR; TSINetwork Rating: Average) (www.broadridge.com; Shares o/s: 115.8 million; Market cap: $17.1 billion; Dividend yield: 1.6%) 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....

2 min read

Pat McKeough

Growth Stocks

Electronic Arts is ready for mobile

Pandemic lockdowns gave the video game industry a big boost. Its long-term outlook is also positive as publishers shift from selling computer games for a one-time upfront fee to making level-one games free. That hurts short-term sales, but at the same time boosts long-term revenue as players increasingly purchase in-game digital goods such as weapons, costumes, enhanced avatars and access to higher levels.

Meanwhile, Electronic Arts is acquiring a mobile games leader to quickly gain a big share of the fastest-growing segment of the videogame market....

3 min read

Pat McKeough

Growth Stocks

It’s still a hold despite dividend hike

MAPLE LEAF FOODS INC. $27 is still a hold. The company (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 123.9 million; Market cap: $3.3 billion; Price-to-sales ratio: 0.8; Dividend yield: 2.7%; TSINetwork Rating: Average; www.mapleleaffoods.com) reported an 11.1% sales rise for the three months ended December 31, 2020, to $1.13 billion from $1.02 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

Small acquisitions are a key strategy

FIRSTSERVICE CORP. $190 is a buy for aggressive investors. The company (Toronto symbol FSV; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 43.6 million; Market cap: $8.3 billion; Price-to-sales ratio: 3.0; Dividend yield: 0.5%; TSINetwork Rating: Extra Risk; www.firstservice.com) tends to fuel its growth with acquisitions....

1 min read

Pat McKeough

Growth Stocks

Nutrien lets you profit from cyclical upswing

Fertilizer demand and prices are moving up again with the global economy—spurring Nutrien’s profits. The company’s recent sale of its investment in Egypt also frees up cash for new growth projects and acquisitions. Moreover, Nutrien is rewarding investors with higher dividends and share buybacks.

NUTRIEN LTD....

1 min read

Pat McKeough

Growth Stocks

Rising backlog a plus for Toromont

TOROMONT INDUSTRIES LTD. $92 is a buy. The company (Toronto symbol TIH; Aggressive Growth Portfolio; Manufacturing & Industry sector; Shares outstanding: 82.5 million; Market cap: $7.6 billion; Price-to-sales ratio: 2.2; Dividend yield: 1.3%; TSINetwork Rating: Extra Risk; www.toromont.com) distributes a range of industrial equipment, including Caterpillar machinery, in eastern Canada....

1 min read

Pat McKeough

Growth Stocks

CAE’s cost savings cut your risk

CAE INC. $35 is still a buy. The company (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 282.8 million; Market cap: $9.9 billion; Price-to-sales ratio: 3.2; Dividend suspended in March 2020; TSINetwork Rating: Average; www.cae.com) delivered 10 flight simulators in the quarter ended December 31, 2020....

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.