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

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

Growth Stocks

Loblaw and Weston set to thrive after COVID

Loblaw is in a strong position to thrive in a post-COVID-19 environment. Many of its customers who opted for home delivery (or in-store pickup) during the lockdowns will likely stick with that value-added service. The company’s improvements to its loyalty programs should also drive additional spending per visit both in-store and online.

The stock lets you tap this growth and the company’s other successful retailing strategies....

2 min read

Pat McKeough

Growth Stocks

New investment already up 58%

ALPHABET INC. remains your #1 Aggressive buy for 2020. The holding company (Nasdaq symbols GOOG $1,415 [class C: non-voting] and GOOGL $1,409 [class A: one vote per share]; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 687.3 million; Market cap: $972.5 billion; Price-to-sales ratio: 5.8; No dividend paid; TSINetwork Rating: Above Average; www.abc.xyz) owns Google’s Internet search business as well as smaller businesses focused on home thermostats, self-driving cars and other technologies.

Alphabet invested in American Well Corp....

1 min read

Pat McKeough

Growth Stocks

Asset sales enhance their focus and appeal

Both of these firms have sold some of their less-important operations and used the cash to buy back shares or increase your dividends. The sales will also let them boost shareholder value by focusing on their remaining businesses. Their prospects remain bright as more people shop online or work from home due to COVID-19.

NORTONLIFELOCK INC....

2 min read

Pat McKeough

Growth Stocks

COVID-19 helps lift Carrier

CARRIER GLOBAL CORP. $29 is a buy. This company (New York symbol CARR; Manufacturing & Industry sector; Shares o/s: 866.2 million; Market cap: $25.1 billion; Divd. yield 1.1%; TSINetwork Rating: Average; www.carrier.com) is a leader in heating, ventilation and air conditioning (HVAC) equipment....

1 min read

Pat McKeough

Growth Stocks

Medical device makers still look solid

While COVID-19 has hurt demand for Baxter and Becton’s medical devices, we expect their sales will quickly rebound in the next few months.

BAXTER INTERNATIONAL INC. $78 is a buy. The company (New York symbol BAX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 508.8 million; Market cap: $39.7 billion; Price-to-sales ratio: 3.5; Dividend yield: 1.3%; TSINetwork Rating: Average; www.baxter.com) makes a variety of medical devices, including intravenous pumps and kidney-dialysis equipment....

2 min read

Pat McKeough

Growth Stocks

WELL Health jumps on U.S. expansion plans

WELL shares shot up recently after the software provider for medical clinics announced plans to expand into the U.S. market. The stock is up 431.1% for our subscribers since we first recommended it in the November 2019 issue of Power Growth Investor at $1.32.

WELL HEALTH TECHNOLOGIES $7.01 is a buy. This operator of medical clinics and industry software provider (Toronto symbol WELL; TSINetwork Rating: Speculative) (www.well.company; Shares o/s: 131.0 million; Market cap: $949.5 million; No divd.) is taking a majority stake in Silicon Valley-based Circle Medical....

1 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.