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

Updating your Aggressive stocks

MTS SYSTEMS CORP. $17 (www.mts.com) remains a hold. The company makes equipment and software that manufacturers use to test the behaviour of materials, machines and structures. Investors also tap its production of sensors for industrial equipment....

1 min read

Pat McKeough

Growth Stocks

Here’s your tech bright spot in the pandemic

These three tech stocks have held up well for investors during the COVID-19 crisis. That reflects higher demand for their products during the stay-at-home shutdown. However, for your new buying, we currently prefer two of the three.

ADOBE INC....

5 min read

Pat McKeough

Growth Stocks

Alphabet will emerge stronger for you

The COVID-19 outbreak has forced many businesses worldwide to temporarily shut down. That in turn has hurt spending on online advertising—particularly by small businesses, restaurants, travel agents and car dealers. To protect value for its investors, Alphabet has slowed the pace of new hiring in response to the slowdown and cut other costs.

Those actions will help protect Alphabet’s profits until the pandemic ends....

5 min read

Pat McKeough

Growth Stocks

Virus-proof your portfolio with these leaders

As our subscriber, you know that ACI Worldwide and Broadridge are not household names. Still, you also know that does nothing to diminish the vital role they play for corporations relying on their back-office supports.

In addition, you should know that both of these service providers have business models that will let them prosper despite COVID-19’s huge economic and social impact.

That’s why we continue to see both ACI Worldwide and Broadridge as buys for your future gains.

ACI WORLDWIDE, $24.32, is a buy. The company (Nasdaq symbol ACIW; TSINetwork Rating: Extra Risk) (www.aciworldwide.com; Shares outstanding: 116.1 million; Market cap: $2.9 billion; No dividends paid) makes software for processing transactions by credit cards, debit cards, automated teller machines, point-of-sale terminals and interbank systems....

2 min read

Pat McKeough

Growth Stocks

Investors should jump in to share Goodfood’s success

Despite the COVID-19 outbreak, Goodfood continues to gain more and more customers. The stock is now up almost 20% for investors since we first recommended it in our December 2019 issue of Power Growth Investor at $3.02.

Goodfood’s stellar results in the latest quarter came before the COVID-19 virus really began to force Canadians to stay home....

1 min read

Pat McKeough

Growth Stocks

Now is a good time to sell these two stocks

Most stocks have dropped in the current market downturn, but we feel top-quality shares will be among the first to rebound. However, some, including Nissan, have severe problems in their markets that will likely block recovery anytime soon. Others, like Luckin Coffee, have big internal issues that limit their growth prospects ahead....

2 min read

Pat McKeough

Growth Stocks

This retailer’s smart moves will pay off for you

Alimentation Couche-Tard has rewarded our subscribers with big gains over the years. We first recommended it in our December 2008 issue at $15.50. Since then, the stock has split 3-for-1 and 2-for-1. That takes our cost down to $2.58 a share—which gives you a scintillating 1,363.6% gain!

The stock has dropped recently from the all-time high of $46.10 it hit in February of 2020....

2 min read

Pat McKeough

Growth Stocks

Here’s a dominating Power Buy for savvy investors

Amazon.com has now jumped to a new all-time high for our subscribers, including a 42% bounce from the bottom it reached during the recent downturn.

Investors now realize, more than ever, that the company’s dominance in e-commerce—through its aggressive retail strategies, massive distribution power and strong Prime program—will continue to build momentum in the wake of the coronavirus.

Furthermore, it continues to solidify its dominance in the cloud through its Amazon Web Services unit; its investment in Alexa virtual assistant AI technology further sets it up for a major role in the use of voice interfaces by individual consumers but also e-commerce retailers.

AMAZON.COM INC....

1 min read

Pat McKeough

Growth Stocks

Buy this biotech for COVID-19 gains

Thermo Fisher’s shares have bounced back from their drop during the March market meltdown. They’re now up 22.1% over the last year.

The fundamentals that made Thermo Fisher a good investment before the COVID-19 downturn remain. And now, the company has just received FDA approval for its coronavirus test....

2 min read

Pat McKeough

Growth Stocks

Home Capital faces two challenges

HOME CAPITAL GROUP INC. $16 remains a hold for aggressive investors. The stock (Toronto symbol HCG; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 53.0 million; Market cap: $848.0 million; Price-to-sales ratio: 2.0; Dividend suspended in May 2017; TSINetwork Rating: Speculative; www.homecapital.com) lets you tap a mortgage lender serving borrowers who fail to meet the stricter standards of big banks and traditional lenders.

The company cuts its credit risk by identifying problem loans early and adjusting the repayment terms....

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
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Financial Post Columnist
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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.