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

Stock split masks Apple’s risk

APPLE INC. $506 is a hold. The company (Nasdaq symbol AAPL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.3 billion; Market cap: $2.2 trillion; Price-to-sales ratio: 7.9; Dividend yield: 0.7%; TSINetwork Rating: Average; www.apple.com) gets 50% of its revenue from iPhone sales....

1 min read

Pat McKeough

Growth Stocks

Restaurant Brands bounces back from pandemic closures

Restaurant Brands’ stock now trades at pre-pandemic levels. That includes its 116% bounce back from the bottom of the recent downturn. Despite those gains, we see even more growth ahead for our subscribers.

RESTAURANT BRANDS INTERNATIONAL $54.45 is a buy. The company (New York symbol QSR; TSINetwork Rating: Average) (www.rbi.com; Shares outstanding: 478.0 million; Market cap: $26.0 billion; Dividend yield: 3.8%) gives you exposure to the world’s third-largest fast-food operator....

1 min read

Pat McKeough

Growth Stocks

You keep prospering with Broadridge

BROADRIDGE FINANCIAL SOLUTIONS $137.30 (New York symbol BR; TSINetwork Rating: Average) (www.broadridge.com; Shares o/s: 115.2 million; Market cap: $15.8 billion; Dividend yield: 1.7%) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing.

Broadridge is now trading at all-time highs after reporting stronger results in the latest quarter.

For the three months ended June 30, 2020, revenue rose 12.4%, to $1.36 billion from $1.21 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

Adobe teams up with IBM

ADOBE INC., $462.01, is a buy. The company (Nasdaq symbol ADBE; TSINetwork Rating: Average) (www.adobe.com; Shares o/s: 479.7 million; Market cap: $221.6 billion; No dividends paid) is now partnering with IBM with the aim of making easy-to-use marketing software for banks that face strict controls on how customer data must be handled.

Adobe’s software will run in IBM’s cloud system, which has received regulatory approval for use by banks....

1 min read

Pat McKeough

Growth Stocks

Savvy acquisitions will add to this 1,660% gain spur big gains for investors

The company has rewarded our subscribers with big gains over the years. We first recommended it in our December 2008 issue at $15.50 a share. Since then, the stock has split 3-for-1 and then 2-for-1. That takes our cost down to $2.58 a share—and gives you a tremendous 1,660.1% gain!

ALIMENTATION COUCHE-TARD $45.41 is a buy. This established retailer (Toronto symbol ATD.B; TSINetwork Rating: Average) (www.couchetard.com; Shares outstanding: 1.11 billion; Market cap: $50.6 billion; Dividend yield: 0.6%) operates 12,124 convenience stores across North America and Europe.

In the three months ended April 26, 2020, sales fell 26.1%, to $9.69 billion from $13.11 billion a year earlier (all figures except share price in U.S....

2 min read

Pat McKeough

Growth Stocks

This Power Buy is already up 140% from its March low

Fair Isaac is well positioned to keep doing well during the pandemic: the stock has seen a 140.0% gain since March of this year to hit all-time highs. Fair Isaac is a Power Buy for our Power Growth Investors.

FAIR ISAAC CORP....

1 min read

Pat McKeough

Growth Stocks

Garmin’s R&D keeps it on top

Garmin got its start in the the early 2000s with GPS devices aimed mostly at drivers. But as that market faded with competition from smartphone apps and in-car navigation units, the company has moved into new leadership positions for a wide range of high-growth and emerging markets....

2 min read

Pat McKeough

Growth Stocks

Re-openings set to lift Toromont

TOROMONT INDUSTRIES LTD. $74 remains a buy. The company (Toronto symbol TIH; Aggressive Growth Portfolio; Manufacturing & Industry sector; Shares outstanding: 82.5 million; Market cap: $6.1 billion; Price-to-sales ratio: 1.7; Dividend yield: 1.7%; 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

It’s ready for higher loan writeoffs

HOME CAPITAL GROUP INC. $24 remains a hold for aggressive investors. The alternative mortgage lender (Toronto symbol HCG; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 53.0 million; Market cap: $1.3 billion; Price-to-sales ratio: 2.8; Dividend suspended in May 2017; TSINetwork Rating: Speculative; www.homecapital.com) set aside $18.67 million in the quarter ended June 30, 2020, to cover potential future loan losses....

1 min read

Pat McKeough

Growth Stocks

Stantec is the better choice for investors

The COVID-19 pandemic has slowed the pace of new construction projects. But, the large backlog of orders for both of these leading engineering firms will help them rebound with the global economy. Still, for your new buying, we prefer Stantec given SNC’s new restructuring plan will weigh on its short-term earnings.

STANTEC INC....

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.