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

These ‘AI buys’ should spur your returns

Artificial intelligence (AI) is an example of an investment idea that could boost your investment returns, or, more likely, end up costing you money. All in all, we think that the biggest, surest gains from AI will come from investing in established businesses that are already profitable and growing, and that can gain all the more by applying AI to their operations.

Here are two companies that are already profitably taking advantage of AI, and they should be among the leaders in the push to extend AI’s use:

2 min read

Pat McKeough

Growth Stocks

Key partnership for Travel + Leisure

TRAVEL + LEISURE CO., $56.64, is a buy. The company (New York symbol TNL; TSINetwork Rating: Average) (www.travelandleisureco.com; Shares outstanding: 66.4 million; Market cap: $3.8 billion; Dividend yield: 4.0%) has just announced a long-term marketing partnership with Hornblower Group, a global leader in maritime hospitality and transportation.

1 min read

Pat McKeough

Growth Stocks

ResMed keeps prospering in its niche

ResMed’s sales and profits got a boost during the pandemic with a sharp rise in demand for its ventilators and other respiration devices. Even as the pandemic eased, the gains continued as the company introduced more products and expanded its software offerings. Today, ResMed’s outlook remains attractive—and not just for its CPAP machines. We think this Power Buy is poised to move even higher for you.

2 min read

Pat McKeough

Growth Stocks

Couche-Tard integrates acquisitions

Alimentation Couche-Tard has made some major acquisitions over the last decade or so, and has just completed another one. Growth by acquisition adds risk; however, the company has a long record of successfully integrating those businesses. Meanwhile, it’s well-positioned to keep prospering in both its core and new markets. Couche-Tard is a Power Buy.

2 min read

Pat McKeough

Growth Stocks

Better efficiency spurs Metro

METRO INC. $106 is a buy. The company (Toronto symbol MRU; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 222.0 million; Market cap: $23.5 billion; Price-to-sales ratio: 1.1; Dividend yield: 1.4%; TSINetwork Rating: Average; www.metro.ca) operates 999 grocery stores and 639 drugstores, in Quebec, Ontario and New Brunswick.

1 min read

Pat McKeough

Growth Stocks

Acquisitions are key to Stantec’s success

Stantec’s shares have jumped 33% since the start of 2025. That’s partly due to its policy of using acquisitions to expand. While risky, the company’s long history of successfully integrating new businesses lowers the negative aspects of this strategy. Stantec is also making better use of digital technologies, including artificial intelligence, to improve efficiency. These factors should drive its earnings—and share price—higher over the next few years.

2 min read

Growth Stocks

Cut your ‘aggressive’ risk with these leaders

Our aggressive stock recommendations can give you bigger gains–and bigger losses–than our conservative recommendations. While that higher volatility comes with increased risk, you can reduce it by opting for aggressive stocks with strong underlying value and hidden assets.

Here are three picks from our Aggressive Stock Portfolio that are solid choices for most investors. All are market leaders, and they’re doing a good job controlling costs. For your new buying, however, we prefer Toromont and Mattr over Saputo.

6 min read

Pat McKeough

Growth Stocks

CAE has a bright outlook

CAE INC. $40 is a buy. The company (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 320.6 million; Market cap: $12.8 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. It also operates pilot-training schools in over 40 countries.

Due to rising retirement and turnover rates, CAE expects the global air travel industry will need 1.5 million new pilots, aircraft maintenance technicians and cabin crew over the next 10 years. That’s up 8% from its previous forecast.

1 min read

Pat McKeough

Growth Stocks

Big investments cut this chipmaker’s risk

Texas Instruments’s plans to invest $60 billion to expand and upgrade its U.S. chipmaking facilities are underway. Those outlays will help its customers avoid new U.S. tariffs and spur its long-term profits. That will also let it continue to reward investors with rising dividends and share buybacks.

TEXAS INSTRUMENTS INC....

2 min read

Pat McKeough

Growth Stocks

Sherwin expands in Brazil

SHERWIN-WILLIAMS CO. $344 is a hold. The company (New York symbol SHW; Conservative Growth Portfolio, Consumer sector; Shares o/s: 250.6 million; Market cap: $86.2 billion; Price-to-sales ratio: 3.8; Dividend yield: 0.9%; TSINetwork Rating: Above Average; www.sherwin-williams.com) is a leading maker of paints and varnishes.

Sherwin recently agreed to acquire the Brazilian decorative paints business of German chemical maker BASF....

1 min read

Pat McKeough

Testimonials

The cornerstones of Pat’s strategy–value, diversification and timelines–make his newsletter, The Successful Investor, highly profitable while minimizing risk. His advice is no-nonsense, down-to-earth and based on solid research. You’ll know what to invest in and what to avoid.

Chuck Chakrapani, PhD
Investors Association of Canada
The older I get the better dividends look. For retirees and would-be retirees who want to sleep at night, I can’t think of a better source of information on reliable growing dividend income than Pat McKeough’s newsletter, Dividend Advisor.

Jonathan Chevreau
Financial Post Columnist
As a manager of more than $500 million in mutual funds, I have access to the best brokerage research available in this country. But I still take time to read Pat McKeough’s premium newsletters

John Sartz
I appreciate the 25 years of above market returns I received by following your advice. at least 95% of my investment decisions were based on TSI recommendations.

Chuck J.
Subscriber since 1996. Inner Circle Member Since 2006
The newsletters I receive in Inner Circle Pro are fantastic! I have been following Pat’s advice for years and everything he has said has been amazing. His commentaries are brilliant, insightful, educational, rational and balanced. My returns are almost double the TSE and I have referred many of my friends who have switched over to your services.

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.