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

Shopify links up with Walmart

SHOPIFY INC. $1,282.40 (Toronto symbol SHOP; TSINetwork Rating: Extra Risk) (www.shopify.ca; Shares outstanding: 116.8 million; Market cap: $150.2 billion; No dividends paid) recently announced a partnership with Walmart. Merchants across the U.S....

1 min read

Pat McKeough

Growth Stocks

Build on your 139.4% gain with this Power Buy

Pinduoduo’s shares are now up a whopping 139.4% for our subscribers since we first recommended them in our November 2019 issue at $33.74 a share.

PINDUODUO INC. (ADR), $80.76, is a Power Buy. The company (Nasdaq symbol PDD; TSINetwork Rating: Extra Risk) (www.pinduoduo.com; Shares outstanding: 679.0 million; Market cap: $98.9 billion; No dividend) offers a Chinese shopping app that brings groups of buyers together to win deeper discounts....

1 min read

Pat McKeough

Growth Stocks

Cyberthreat powers this tech leader

NortonLifeLock is the new name for Symantec—a long-time tech favourite that handed our subscribers a whopping 1,174.3% gain. The cybersecurity company changed its name following the sale of its corporate business late last year.

Looking at NortonLifeLock’s new focus on consumer cybersecurity and identity protection, we think it has lots of room to move higher.

NORTONLIFELOCK INC....

2 min read

Pat McKeough

Growth Stocks

Updating your Aggressive stocks: CGI Inc., Bombardier and Metro

CGI INC. $90 (www.cgi.com) is our #1 Aggressive Buy for 2020. The company is a leading provider of computer outsourcing services. It helps clients automate routine functions such as accounting and buying supplies. That improves the efficiency of those businesses and lets them focus on their main operations....

1 min read

Pat McKeough

Growth Stocks

Three key updates for Successful investors: Royal Bank of Canada, Thomson Reuters and Bank of Nova Scotia

ROYAL BANK OF CANADA $96 is a buy. The bank (Toronto symbol RY; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.4 billion; Market cap: $134.4 billion; Price-to-sales ratio: 3.3; Dividend yield: 4.6%; TSINetwork Rating: Above Average; www.rbc.com) purchased Los Angeles-based City National Bank in 2015 for $5.5 billion U.S....

2 min read

Pat McKeough

Growth Stocks

Enhance your returns with aggressive stocks: Saputo, Leon’s Furniture and Linamar

Top aggressive stocks can deliver stronger gains than conservative picks. We especially like the long-term prospects of these three high-quality aggressive picks, and we see two of them as buys for right now.

Note, however, we continue to recommend that aggressive stocks, with inherently greater risk, make up no more than a third of your overall portfolio....

5 min read

Pat McKeough

Growth Stocks

Updating your Conservative stocks: Briggs & Stratton Corp., Philips Electronics N.V. ADR and Diageo Plc ADR

BRIGGS & STRATTON CORP. $1.34 (www.basco.com) is now a sell. Low sales of its lawnmower engines and other related products as a result of COVID-19 prompted the company to skip a $6.7 million interest payment. That could trigger a default, and require the immediate repayment of $195.5 million on those notes....

1 min read

Pat McKeough

Growth Stocks

Agilent’s products will help beat COVID-19

COVID-19 should spur demand for Agilent’s medical-testing equipment as companies develop new treatments and vaccines.

In the short term, however, coronavirus shtutdowns have hurt the company’s ability to install new equipment. Still, sales for this industry leader should rebound over the next few months as its customers resume normal operations.

AGILENT TECHNOLOGIES INC....

2 min read

Pat McKeough

Growth Stocks

McCormick vulnerable to next wave

MCCORMICK & CO. INC. $172 remains a hold. The stock (New York symbol MKC; Income Portfolio, Consumer sector; Shares outstanding: 123.6 million; Market cap: $21.3 billion; Price-to-sales ratio: 4.3; Dividend yield: 1.4%; TSINetwork Rating: Average; www.mccormick.com) fell to $112 in March 2020 during the initial COVID-19 lockdowns....

1 min read

Pat McKeough

Growth Stocks

Fight against the virus enhances their appeal

Investors are now turning their attention to stocks that should thrive as the world attempts to prevent a resurgence of COVID-19. Those investments include medical device suppliers Baxter and Becton Dickinson. Both firms are developing COVID-related products....

2 min read

Pat McKeough

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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.