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

Use this Power Buy to tap emerging GPS technologies

Garmin is a leader in a wide range of high-growth and emerging markets. They include the aviation, marine, and outdoor markets. Looking at the company’s continuing stream of new products for new markets—fuelled by its high R&D spending—we think it has lots of room to move above its current highs.

GARMIN LTD....

1 min read

Pat McKeough

Growth Stocks

You can expect Becton to recover quickly

Medical device maker Becton Dickinson is down 13% from its recent peak of $283 in August. That’s mainly because hospitals have deferred many procedures to free up capacity for COVID-19 patients. However, the company’s outlook remains bright, particularly as it wins orders for its new COVID-19 testing system.

BECTON DICKINSON & CO....

2 min read

Pat McKeough

Growth Stocks

Here are three key updates for your portfolio: Restaurant Brands, Ameren and NCR Corp.

RESTAURANT BRANDS INTERNATIONAL INC. $62 is a buy. The company (New York symbol QSR; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 465.5 million; Market cap: $28.9 billion; Price-to-sales ratio: 3.7; Dividend yield: 3.3%; TSINetwork Rating: Average; www.rbi.com) had to shut down most of its fast-food restaurants earlier this year due to the COVID-19 pandemic....

2 min read

Pat McKeough

Growth Stocks

NortonLifeLock expands in Europe

NORTONLIFELOCK INC. $20 is a buy. The stock (Nasdaq symbol NLOK; Aggressive Growth Portfolio, Consumer sector; Shares o/s: 600.4 million; Market cap: $12.0 billion; Price-to-sales ratio: 4.9; Dividend yield: 2.5%; TSINetwork Rating: Average; www.nortonlifelock.com) is focused on expanding its Norton consumer business to lift investor returns....

1 min read

Pat McKeough

Growth Stocks

Asset sale set to fuel share buybacks

EBAY INC. $54 is also buy. The company (Nasdaq symbol EBAY; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 796.1 million; Market cap: $43.0 billion; Price to-sales ratio: 3.1; Dividend yield: 1.2%; TSINetwork Rating: Above Average; www.ebay.com) recently agreed to sell its classified ad business, which supplies 10% of its revenue, to Norway’s Adevinta ASA (Over-the-counter Pink Sheets symbol ADEVF).

eBay expects to complete the sale in the first quarter of 2021....

1 min read

Pat McKeough

Growth Stocks

Broadridge reports higher earnings

BROADRIDGE FINANCIAL SOLUTIONS INC. $147 is a buy. The company (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares o/s: 115.2 million; Market cap: $16.9 billion; Price-to-sales ratio: 3.7; Div. yield: 1.6%; TSINetwork Rating: Average; www.broadridge.com) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing.

In the quarter ended September 30, 2020, revenue rose 7.3%, to $1.02 billion from $948.6 million a year earlier....

1 min read

Pat McKeough

Growth Stocks

This pandemic star is still shining

Starbucks has rebounded strongly since the start of the COVID-19 pandemic thanks to its pickup-only and drive-thru locations.

The company now plans to concentrate on adding more of those outlets under a new growth plan. It expects to expand to that number to 55,000 stores by 2030....

4 min read

Pat McKeough

Growth Stocks

Online push just adds to Metro’s appeal

The COVID-19 pandemic continues to prompt consumers to load up on food and other household items as they eat more of their meals at home. Customers are also buying more of their groceries online. In response, Metro is expanding its online platforms and home delivery services....

2 min read

Pat McKeough

Growth Stocks

Acquisitions point to a better future

CAE INC. $32 is still a buy. The company (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 282.5 million; Market cap: $9.0 billion; Price-to-sales ratio: 2.8; Dividend suspended in March 2020; TSINetwork Rating: Average; www.cae.com) is a leading maker of flight simulators for commercial and military aircraft....

1 min read

Pat McKeough

Growth Stocks

BlackBerry jumps on Amazon deal

BLACKBERRY LTD. $11 is still a hold. The company (Toronto symbol BB; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 556.1 million; Market cap: $6.1 billion; Price-to-sales ratio: 5.8; No dividend paid; TSINetwork Rating: Speculative; www.blackberry.com) quit developing smartphones in 2016 to concentrate on its more-promising security software....

1 min read

Pat McKeough

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Chuck Chakrapani, PhD
Investors Association of Canada
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Financial Post Columnist
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Subscriber since 1996. Inner Circle Member Since 2006
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Walter H.
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.