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

New orders will add to your 35% gain

CAE INC. $34 is a buy. The company (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 265.0 million; Market cap: $9.0 billion; Price-to-sales ratio: 2.5; Dividend yield: 1.3%; TSINetwork Rating: Average; www.cae.com) has sold two new flight simulators for Boeing’s new 777X jetliner to Dubai-based Emirates Airline....

1 min read

Pat McKeough

Growth Stocks

Your faith has handed you a 20% gain

If you took our advice and held Home Capital during its 2017 liquidity crisis, your patience has been rewarded. The stock has recovered those losses, and is in fact now up 20% since before its big drop. Even so, we continue to keep a close eye on this aggressive pick for our subscribers to protect your gains.

HOME CAPITAL GROUP INC....

1 min read

Pat McKeough

Growth Stocks

Here’s 2 buys to fuel your aggressive growth

For Successful Investors, the appeal of aggressive stocks is obvious: they can give you bigger gains than conservative ones. But as our readers are well aware, they can also hand you bigger losses. That’s why they’re only suitable for those of you prepared to accept the added risk.

Regardless we continue to recommend that aggressive stocks make up no more than, say, 30% of your portfolio....

7 min read

Pat McKeough

Growth Stocks

NCR aims to build on your 40% gain

Demand for ATMs has suffered in the past few years as consumers increasingly pay for purchases with credit cards instead of cash. It’s a trend we’ve highlighted for our subscribers several times over the last year as we continue to apprise you of key overall market moves, but also those specific to individual industries....

2 min read

Pat McKeough

Growth Stocks

Don’t overlook these updates on your stocks

TENNANT CO., $75, is a hold for investors. The company (New York symbol TNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 18.3 million; Market cap: $1.4 billion; P.S. ratio: 1.2; Divd. yield: 1.2%; TSINetwork Rating: Average; www.tennantco.com) gives you exposure to a niche manufacturing segment: the production and sale of industrial floor and street-cleaning equipment, including scrubbers, sweepers and polishers.

In January 2019, Tennant paid $26.9 million for Gaomei Cleaning Equipment Co....

2 min read

Pat McKeough

Growth Stocks

Motorola’s dividend masks your risk

MOTOROLA SOLUTIONS INC., $167, is a hold. The company (New York symbol MSI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 171.3 million; Market cap: $28.6 billion; Price-to-sales ratio: 3.7; Dividend yield: 1.5%; TSINetwork Rating: Average; www.motorolasolutions.com) makes communications equipment such as radios for police and fire vehicles.

With the January 2020 payment, Motorola will lift its quarterly dividend by 12.3%....

1 min read

Pat McKeough

Growth Stocks

Sony unlocks value for investors

SONY CORP. ADRs, $64, is still a hold. The Japanese conglomerate (New York symbol SNE; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.3 billion; Market cap: $83.2 billion; Price-to-sales ratio: 0.8; Dividend yield: 0.6%; TSINetwork Rating: Average; www.sony.net) plans to sell some of its shares in its real estate subsidiary, SRE Holdings, to the public....

1 min read

Pat McKeough

Growth Stocks

U.S. stocks take you higher

Welcome to your latest issue of Wall Street Stock Forecaster! This month, we feature several well-known U.S. stocks poised to deliver strong, long-term returns for investors.

We start with Walmart , which continues to offer its investors solid gains despite intense competition from traditional retailers as well as online giant Amazon.com....

1 min read

Pat McKeough

Growth Stocks

Bright outlook helps offset your risk

Walmart ticks all the boxes as a sound stock pick for our subscribers. That’s on top of its 22% gain for investors in the past year and its strong 158.7% rise in the 13 and a half years since we first recommended it. For so many reasons, the world’s biggest retailer remains our favourite pick among its peers....

4 min read

Pat McKeough

Growth Stocks

Subscriber surge sets you up for tasty profits

Canadian meal-kit company Goodfood Market began trading on the Toronto exchange in June 2017 at $2.50 a share. The stock reached as high as $3.98 in February 2019, but has come back down since then to today’s price.

Meanwhile, though, it continues to grow rapidly, and that expansion offers investors an attractive opportunity for big gains....

2 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.