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

Garmin’s R&D keeps it on top

Garmin got its start in the the early 2000s with GPS devices aimed mostly at drivers. But as that market faded with competition from smartphone apps and in-car navigation units, the company has moved into new leadership positions for a wide range of high-growth and emerging markets....

2 min read

Pat McKeough

Growth Stocks

Re-openings set to lift Toromont

TOROMONT INDUSTRIES LTD. $74 remains a buy. The company (Toronto symbol TIH; Aggressive Growth Portfolio; Manufacturing & Industry sector; Shares outstanding: 82.5 million; Market cap: $6.1 billion; Price-to-sales ratio: 1.7; Dividend yield: 1.7%; TSINetwork Rating: Extra Risk; www.toromont.com) distributes a range of industrial equipment, including Caterpillar machinery, in eastern Canada....

1 min read

Pat McKeough

Growth Stocks

It’s ready for higher loan writeoffs

HOME CAPITAL GROUP INC. $24 remains a hold for aggressive investors. The alternative mortgage lender (Toronto symbol HCG; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 53.0 million; Market cap: $1.3 billion; Price-to-sales ratio: 2.8; Dividend suspended in May 2017; TSINetwork Rating: Speculative; www.homecapital.com) set aside $18.67 million in the quarter ended June 30, 2020, to cover potential future loan losses....

1 min read

Pat McKeough

Growth Stocks

Stantec is the better choice for investors

The COVID-19 pandemic has slowed the pace of new construction projects. But, the large backlog of orders for both of these leading engineering firms will help them rebound with the global economy. Still, for your new buying, we prefer Stantec given SNC’s new restructuring plan will weigh on its short-term earnings.

STANTEC INC....

2 min read

Pat McKeough

Growth Stocks

Higher results despite COVID threat

MAPLE LEAF FOODS INC. $29 is still a hold. The company (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares o/s: 123.9 million; Market cap: $3.6 billion; P.S. ratio: 0.9; Divd. yield: 2.2%; TSINetwork Rating: Average; www.mapleleaffoods.com) sells fresh and prepared meats under the Maple Leaf and Schneider labels.

Maple Leaf’s sales in the three months ended June 30, 2020, rose 7.0%, to $1.09 billion from $1.02 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

This dividend payer still has appeal

NUTRIEN LTD. $51 is a buy. The company (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares o/s: 569.1 million; Market cap: $29.0 billion; Price-to-sales ratio: 1.5; Dividend yield: 4.7%; TSINetwork Rating: Average; www.nutrien.com) is the world’s largest producer of agricultural fertilizers....

1 min read

Pat McKeough

Growth Stocks

Updating our Aggressive stocks: Dun & Bradstreet Inc.

DUN & BRADSTREET HOLDINGS INC. $25 (www.dnb.com) is a buy. The company is a global provider of information and data analytics. Operating since 1841, it has more than 135,000 clients, including 90% of the Fortune 500. These customers access Dun & Bradstreet’s comprehensive information and data on more than 360 million global businesses.

Dun & Bradstreet was a Wall Street Stock Forecaster recommendation until early 2019....

1 min read

Pat McKeough

Growth Stocks

This stock plays a key role in food supply

COVID-19 continues to highlight the importance of ingredient producer Archer Daniels Midland to the global food supply chain. At the same, however, lower demand for gasoline has forced it to put off any potential spinoff of its ethanol business. Even so, we feel the company is in a strong position to expand its profits as more countries re-open their economies.

ARCHER DANIELS MIDLAND CO....

2 min read

Pat McKeough

Growth Stocks

Sony ups PS5 production

SONY CORP. ADRs $78 is still a hold. The Japanese conglomerate (New York symbol SNE; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.3 billion; Market cap: $101.4 billion; Price-to-sales ratio: 0.8; Divd....

1 min read

Pat McKeough

Growth Stocks

New Index complements FICO scores

FAIR ISAAC CORP. $438 is a buy, but only for highly aggressive investors. The company (New York symbol FICO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 28.9 million; Market cap: $12.7 billion; Price-to-sales ratio: 10.4; Dividend suspended June 2017; TSINetwork Rating: Average; www.fico.com), in response to rising unemployment due to COVID-19, has launched the FICO Resilience Index....

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.