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

Online surge good news for FedEx

FEDEX CORP. $130 is still a buy. The company (New York symbol FDX; Aggressive Growth Portfolio, Consumer sector; Shares o/s: 264.4 million; Market cap: $34.4 billion; Price-to-sales ratio: 0.5; Dividend yield: 2.0%; TSINetwork Rating: Average; www.fedex.com) delivers packages and documents in the U.S....

1 min read

Pat McKeough

Growth Stocks

Twilio will connect you with even more gains

Twilio has skyrocketed since its 2016 IPO and for good reason. The company is focused on a rapidly expanding area: it provides the building blocks that its customers and their software developers need to integrate voice calling, text messaging, video, web, mobile chat and, more recently, email.

The company, in fact, spends a very high 33.3% of its sales to stay ahead of the competition but also to keep winning promient new customers.

Even in today’s uncertain business climate, Twilio’s array of communications offerings is seeing increased demand as COVID-19 forces employees to work remotely....

2 min read

Pat McKeough

Growth Stocks

Investors should buy Shopify for even more success

Shopify’s stock continues to surge, and it’s currently the most valuable company on the Toronto Stock Exchange. With its $123.6 billion market cap, it’s just ahead of long-time leader Royal Bank at $120.8 billion.

Some other well-known Canadian stocks have reached the top over the years—only to crash in spectacular fashion....

1 min read

Pat McKeough

Growth Stocks

Investors can breathe easier with this top stock

ResMed specializes in products to treat sleep apnea and chronic obstructive pulmonary disease (COPD). However, with the onset of COVID-19, it is also accelerating production of its current lines of life support ventilators and non-invasive ventilators, as well as its ventilation mask systems.

In fact, the company produced 52,000 non-invasive ventilators in the latest quarter, a three-fold increase over the normal quarterly rate....

2 min read

Pat McKeough

Growth Stocks

Benefit from the world’s love affair with this Power Buy

Facebook is now back close to its all-time high for investors. That follows a spectacular 50% bounce back from its low during the recent downturn.

COVID-19 has hurt the rates Facebook charges for ads—even as people isolated in their homes spend more time on social media.

But while some big marketers have cut their ad spending, key for the company is that total ad spending on Facebook and Instagram is still rising....

1 min read

Pat McKeough

Growth Stocks

This 37% gain bodes well for you

Eli Lilly’s shares haven’t just bounced back from their drop during the March market meltdown. In fact, they’ve soared to new all-time highs for investors and are now up a stellar 36.7% over the last year.

What has spurred this strong performance? Well, it’s a combination of expanding investor interest in drug stocks, as well as the company’s own strong growth prospects.

Drugmakers used to rely for their sales of “blockbuster drugs” that work on all patients....

3 min read

Pat McKeough

Growth Stocks

Power Growth Investor Offer: Special for TSI Subscribers

Get ready for the market’s comeback with the right power stocks

As a subscriber to The Successful Investor, you’re following a conservative approach to investing. Buying strong, mostly dividend-paying stocks that furnish solid total returns over time....

2 min read

Pat McKeough

Growth Stocks

Thomson is your COVID-19 bright spot

Thomson has gained 12% for our readers in the past year, even with the COVID-19 downturn. That’s mainly because it continues to unlock the huge value of its financial information business. The company’s remaining tax and legal businesses should also benefit as businesses navigate the varying impact of coronavirus relief bills.

THOMSON REUTERS CORP....

2 min read

Pat McKeough

Growth Stocks

COVID impacts Blackberry investors

BLACKBERRY LTD. $6.38 is still a hold. To add value for investors, the company (Toronto symbol BB; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 554.2 million; Market cap: $3.5 billion; Price-to-sales ratio: 4.5; No dividend paid; TSINetwork Rating: Speculative; www.blackberry.com) quit developing smartphones in 2016 to focus on its more-promising security software for mobile phones and self-driving cars.

It is now seeing strong demand for BlackBerry Digital Workplace software as COVID-19 has forced more employees to work at home....

1 min read

Pat McKeough

Growth Stocks

Balance sheets protect you during COVID-19

COVID-19 has had a punishing impact on the aviation industry. Still, investors in companies with strong balance sheets, such as CAE, are in a much better position during and after the crisis than those invested in more-leveraged firms like Bombardier.

CAE INC....

2 min read

Pat McKeough

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Investors Association of Canada
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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.