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 drug stocks stand out for investors

We think the drug industry will enjoy great success over the next decade. But due to the nature of the business, results will vary widely and unpredictably from one drug company to another. A volatile market like the one we expect for drug stocks will include winners and losers....

2 min read

Pat McKeough

Growth Stocks

FICO adapts for today’s borrowers

FAIR ISAAC CORP. $431.25 (New York symbol FICO; TSINetwork Rating: Average) (www.fairisaac.com; Shares outstanding: 29.0 million; Market cap: $12.6 billion; No dividends paid) in response to rising unemployment due to COVID-19, recently launched the FICO Resilience Index....

1 min read

Pat McKeough

Growth Stocks

This Power Buy gains a sports legend as an investor

DraftKings keeps hitting new highs even amid continuued COVID-19 sports lockdowns. That testifies to the strong demand for sports wagering. It has also attracted the interest of prominent athletes. DraftKings is a Power Buy for our Power Growth Investors.

DRAFTKINGS INC., $51.03, is a Power Buy. The company (Nasdaq symbol DKNG; TSINetwork Rating: Extra Risk) (www.draftkings.com; Shares o/s: 355.6 million; Market cap: $18.1 billion; No dividend) has announced that National Basketball Association (NBA) legend and team owner Michael Jordan will purchase an undisclosed stake in DraftKings....

1 min read

Pat McKeough

Growth Stocks

Your tasty 5,336% gain is just the beginning

Food delivery is one of the most dynamic businesses around these days, especially as the industry deals with COVID-19. But Domino’s Pizza—a favourite of ours—has long been a leader in getting its pizzas to happy customers. That’s given our subscribers an astounding 5,336.3% gain since we first recommended the shares in 2006.

We still believe in this leader’s strong prospects and its outlook....

2 min read

Pat McKeough

Growth Stocks

ADT links up with Google for growth

ADT keeps signing and retaining security customers. And one reason for its expanding market share are additions to its range of services. They include Wi-Fi-enabled security cameras and automated home solutions. Now, with ADT’s new smart-home partnership with Google-parent Alphabet, its prospects look even brighter.

ADT INC....

2 min read

Pat McKeough

Growth Stocks

An aggressive stock up 33% despite COVID

For the April 2020 issue, we welcomed FirstService to our Successful Investor Aggressive Growth Portfolio from its original spot as a Power Growth Investor pick. Since then, the stock has jumped 33% as the company takes advantage of the COVID-19 pandemic to make attractive acquisitions....

2 min read

Pat McKeough

Growth Stocks

Defence clients bolster CAE

CAE INC. $20 is still a buy for patient investors. The company (Toronto symbol CAE; Conservative Growth Payer Portfolio, Manufacturing & Industry sector; Shares o/s: 265.8 million; Market cap: $5.3 billion; Price-to-sales ratio: 1.6; Divd....

1 min read

Pat McKeough

Growth Stocks

These fallen stars are still worth holding

These two former stock market darlings from the 1990s continue to shrink their operations as they focus on their more-promising businesses. That puts them in a better position to survive COVID-19 disruptions. Still, investors will need to be patient: their short-term prospects remain weak.

BLACKBERRY LTD....

2 min read

Pat McKeough

Growth Stocks

Home meals boost Metro

METRO INC., $59.83, is a buy. The stock (Toronto symbol MRU; Shares o/s: 251.8 million; Market cap: $14.8 billion; TSINetwork Rating: Average; Yield: 1.5%; www.metro.ca) lets you tap 950 grocery stores and 650 drugstores, in Quebec, Ontario and New Brunswick.

Metro continues to benefit as consumers eat more meals at home during the COVID-19 pandemic instead of going to restaurants.

In the three months ended July 4, 2020, sales improved 11.6%, to $5.86 billion from $5.23 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

Innergex adds wind plants

INNERGEX RENEWABLE ENERGY $22.81, is a buy. The power generator (Toronto symbol INE; Shares o/s: 174.4 million; Market cap: $3.9 billion; TSINetwork Rating: Extra Risk; Dividend yield: 3.2%; www.innergex.com) operates 37 hydroelectric plants, 32 wind farms and six solar power fields....

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.