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.

Read More Close

Growth Stocks Library Archives

Growth Stocks

Virus forces ATM makers to adapt

Sales of traditional ATMs will likely suffer over the next few years as COVID-19 prompts more people to bank online. However, ATM manufacturers NCR and Diebold are working on new “contactless” models that will let users withdraw cash using a code on their smartphone....

2 min read

Pat McKeough

Growth Stocks

Robotics could soften COVID impact

TENNANT CO. $70 is still a hold. The company (New York symbol TNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 18.3 million; Market cap: $1.3 billion; Price-to-sales ratio: 1.1; Dividend yield: 1.3%; TSINetwork Rating: Average; www.tennantco.com) makes industrial floor and street-cleaning equipment, including scrubbers, sweepers and polishers.

Businesses are spending less on Tennant’s equipment as a result of COVID-19 shutdowns....

1 min read

Pat McKeough

Growth Stocks

Quaker sees higher cost savings

QUAKER CHEMICAL CORP. $199 is still a buy. The company (New York symbol KWR; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 17.8 million; Market cap: $3.5 billion; Price-to-sales ratio: 2.7; Dividend yield: 0.8%; TSINetwork Rating: Average; www.quakerchem.com) completed its acquisition of rival specialty chemicals maker Houghton International in August 2019....

1 min read

Pat McKeough

Growth Stocks

Fast-food stocks should gain from re-opening

These three fast-food operators have held up well during the pandemic. That’s thanks to their pre-COVID-19 investments in online ordering, drive-thru takeout lanes and home delivery services. Now, as they re-open their stores, their shares should continue to move higher.

STARBUCKS CORP....

5 min read

Pat McKeough

Growth Stocks

PayPal lets you tap real-world sellers

PAYPAL HOLDINGS INC. $185 is a buy. The company (Nasdaq symbol PYPL; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 1.2 billion; Market cap: $222.0 billion; Price-to-sales ratio: 11.9; No dividends paid; TSINetwork Rating: Above Average; www.paypal.com) processes online transactions on millions of websites....

1 min read

Pat McKeough

Growth Stocks

Two ways to profit post-COVID-19

The COVID-19 pandemic has spurred strong demand for computing products and services that help businesses and their employees adapt to remote working.

We feel that demand will continue to rise, even after the current crisis ends. One way for investors to profit from remote working is with market leaders Nvidia and Adobe....

4 min read

Pat McKeough

Growth Stocks

Amazon.com targets another strategic business

Amazon.com has now jumped to a new all-time high for our subscribers. That includes a 97% bounce from the bottom it reached during the recent downturn.

AMAZON.COM INC. $3,099.91, is a Power Buy. The company (Nasdaq symbol AMZN; TSINetwork Rating: Average) (www.amazon.com; Shares o/s: 498.8 million; Market cap: $1.6 trillion; No dividends paid) is now buying Zoox, a company specializing in the development of self-driving vehicles....

1 min read

Pat McKeough

Growth Stocks

They’re ready for the new travel reality

The coronavirus pandemic cancelled most vacation plans. However, the reopening of the economy should spur strong demand for domestic travel—especially for lodgings that vacationers can reach by car. Both Wyndham Destinations and Wyndham Hotels and Resorts should benefit from that surge ahead of the return to a more-normal travel and lodging market.

WYNDHAM DESTINATIONS INC....

2 min read

Pat McKeough

Growth Stocks

WELL deepens its offerings

WELL HEALTH TECHNOLOGIES $3.14 is a buy. The company (Toronto symbol WELL; TSINetwork Rating: Speculative) (www.well.company; Shares o/s: 130.7 million; Market cap: $405.3 million; No divd.) provides Electronic Medical Records software and services to a network of 1,900 medical clinics (of which it owns 20)....

1 min read

Pat McKeough

Growth Stocks

Abobe’s R&D powers its leading software

This leading software firm should benefit as COVID-19 keeps a significant percentage of us working from home. However, we expect the remote-work trend to continue past the current crisis and to spur rising demand for Adobe’s digital conferencing software and other applications.

There are other drivers pushing Adobe upward, including its strong position in key markets and its high R&D spending....

2 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.