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

Their vital products give them an edge: Motorola Solutions and Cintas

These two picks continue their impressive rebound following the March 2020 stock market drop—and despite COVID-19 lockdowns. Those gains reflect their vital products for businesses. We expect they will climb even higher as more businesses re-open.

MOTOROLA SOLUTIONS INC....

2 min read

Pat McKeough

Growth Stocks

Idexx is priced to perfection

IDEXX LABORATORIES INC. $465 is still a hold. The company (Nasdaq symbol IDXX; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 84.9 million; Market cap: $39.5 billion; Price-to-sales ratio: 15.3; No dividends paid; TSINetwork Rating: Average; www.idexx.com) makes equipment that veterinarians use to detect diseases in pets and farm animals.

The stock has soared 70% in the past year....

1 min read

Pat McKeough

Growth Stocks

Fast food operators ready for next phase

Shares of these two fast-food companies have held up well during the pandemic. That’s thanks in part to their already well-established takeout and delivery services. New menu items and smaller, less costly restaurants also set them for more gains.

YUM! BRANDS INC....

2 min read

Pat McKeough

Growth Stocks

Nvidia teams up with Tesla rival

NVIDIA CORP. $517 is a buy. The company (Nasdaq symbol NVDA; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 619.0 million; Market cap: $320.0 billion; Price-to-sales ratio: 21.6; Dividend yield: 0.1%; TSINetwork Rating: Average; www.nvidia.com) is finding new uses for its graphic chips beyond video games....

1 min read

Pat McKeough

Growth Stocks

Cyclical techs are riding high: Apple, Intel and Texas Instruments

The economic rebound following the first wave of COVID-19 in early 2020 has helped push these three leading technology stocks to near-record highs.

We continue to like the outlook for all three, particularly as the second wave of COVID-19 continues to spur demand for personal computers and other electronic equipment....

5 min read

Pat McKeough

Growth Stocks

Disney+ gains help propel your DIS shares

In November 2019, Disney launched Disney+, its new subscription video-on-demand streaming service. The company expected Disney+ to see steady growth. But the pandemic hugely accelerated its adoption by consumers as countries around the world went into lockdown....

1 min read

Pat McKeough

Growth Stocks

Add to your stellar 330.8% and 520.5% gains: WELL Health Technologies and Goodfood Market

These firms have rewarded our subscribers with spectacular gains as demand for their services during the pandemic accelerated. Goodfood has jumped 330.8% since we first recommended the shares in our December 2019 issue of Power Growth Investor at $3.02. WELL Health has soared 520.5% since we first picked the shares in November 2019 at $1.32 a share.

We still see both as buys.

WELL HEALTH TECHNOLOGIES $8.19 is a buy. This operator of medical clinics and industry software provider (Toronto symbol WELL; TSINetwork Rating: Speculative) (www.well.company; Shares outstanding: 159.3 million; Market cap: $1.3 billion; No dividends paid) provides Electronic Medical Records software and services to a network of 1,900 medical clinics (of which it owns 20)....

2 min read

Pat McKeough

Growth Stocks

Here’s our latest on two high-growth buys: Eli Lilly & Co. and Amazon.com

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:

ELI LILLY & CO. $201.26 is a buy. The stock (New York symbol LLY; TSINetwork Rating: Above Average) (www.lilly.com; Shares outstanding: 956.5 million; Market cap: $192.5 billion; Dividend yield: 1.7%) soared to new highs recently after it announced the latest Phase II results for its Alzheimer’s drug donanemab....

2 min read

Pat McKeough

Growth Stocks

Wyndham taps a younger market

WYNDHAM DESTINATIONS INC. $49.49 is a buy. Through the stock (New Yorksymbol WYND; TSINetwork Rating: Extra Risk)(www.wyndhamdestinations.com; Shares outstanding: 85.7 million; Market cap: $4.2 billion; Dividend yield: 2.5%) investors tap the world’s largest vacation-ownership and exchange company....

1 min read

Pat McKeough

Growth Stocks

Warner Music lets you tap streaming demand

Warner Music’s recent IPO was successful despite COVID-19 volatility. That shows the strength of the music industry. It continues to benefit from strong demand for music-streaming services, such as Spotify and Apple Music, as well as video apps such as TikTok.

With its June 2020 share offering, the company raised $1.9 billion by selling 77 million shares at $25 each.

Warner Music is up 17.3% for us since we first made it a buy in our July 2020 issue at $32.56....

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.