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

Buy these two for their growth prospects

Long-time readers know that we keep you informed of important news about the stocks we cover. That means highlighting developments that promise to brighten their outlook. Here are two that stand out as buys this month:

ADT INC. $7.47 is a Power Buy....

2 min read

Pat McKeough

Growth Stocks

Warner deepens investor value

WARNER MUSIC GROUP $28.64, is a buy. The company (Nasdaq symbol WMG; TSINetwork Rating: Average) (www.wmg.com; Shares outstanding: 88.6 million; Market cap: $14.6 billion; Dividend yield: 1.7%) has now started paying dividends.

Investors received the first regular quarterly payment of $0.12 a share on September 1, 2020....

1 min read

Pat McKeough

Growth Stocks

These rebounding restaurants still offer gains

With COVID-19, both Texas Roadhouse and Chipotle dropped along with the market. But each has used a savvy strategy to rebound and climb to an all-time high. We think both companies are well-positioned to capitalize on their popular food offerings to attract more dine-in, pick-up and takeout customers....

2 min read

Pat McKeough

Growth Stocks

Sales for COVID-19 patients fuel ResMed

ResMed continues to report stronger results as it expands its production of life support ventilators, non-invasive ventilators, and ventilation mask systems. That’s on top of ongoing sales for the company’s sleep apnea products.

We still believe in this leader’s strong prospects and its outlook....

2 min read

Pat McKeough

Growth Stocks

This Power Buy has more than doubled for our readers

Twilio keeps soaring for our readers—it’s up 59.4% since we first recommended it in our June 2020 issue at $187.42. We think the stock still has gains ahead, especially in light of its new acquisition. Twilio is a Power Buy for our Power Growth Investors.

TWILIO INC., $298.70, is a buy....

1 min read

Pat McKeough

Growth Stocks

Updating your Aggressive stocks: Nutrien Ltd., Colliers International Group Inc. and Stantec Inc.

NUTRIEN LTD. $54 (www.nutrien.com) is still a buy. The company is the world’s largest producer of agricultural fertilizers. It also sells seeds, fertilizer and other agricultural products through 2,000 retail stores in seven countries....

1 min read

Pat McKeough

Growth Stocks

Ride home-improvement trend with Leon’s

With the April 2020 issue—before the full impact of the COVID-19 pandemic—we promoted Leon’s to our Successful Investor Aggressive Growth Portfolio from our Power Growth Investor newsletter. The lockdowns cut the stock to $10.25, but it has roared back strongly as the company’s stores reopened....

2 min read

Pat McKeough

Growth Stocks

These two are shifting to better businesses

Both of these information providers are shifting their focus to more-promising businesses. That bodes well for their future earnings, which should also support their dividends.

THOMSON REUTERS CORP. $108 remains a buy. The company (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares o/s: 495.7 million; Market cap: $53.5 billion; Price-to-sales ratio: 9.0; Dividend yield: 1.9%; TSINetwork Rating: Above Average; www.thomsonreuters.com) continues to enhance investor value with its plan to focus on selling specialized information to professionals in the legal, and tax and accounting fields....

2 min read

Pat McKeough

Growth Stocks

CGI continues to win contracts

CGI INC. $90 is our #1 Aggressive buy for 2020. The company (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 269.3 million; Market cap: $24.2 billion; Price-to-sales ratio: 1.9; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) helps its clients automate routine functions such as accounting and buying supplies....

1 min read

Pat McKeough

Growth Stocks

CP teams up with Maersk

CANADIAN PACIFIC RAILWAY $405.05, is a buy. The company (Toronto symbol CP; shares outstanding: 135.6 million; Market cap: $55.2 billion; Rating: Above Average; Dividend yield: 0.9%) operates a 22,000-kilometre rail network between Montreal and Vancouver.

CP Rail has announced a new deal with Danish global shipping giant Maersk....

1 min read

Pat McKeough

Testimonials

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Chuck Chakrapani, PhD
Investors Association of Canada
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Subscriber since 1996. Inner Circle Member Since 2006
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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.