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

PepsiCo faces higher costs

PEPSICO INC. $128 is a hold. The company (Nasdaq symbol PEP; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.4 billion; Market cap: $179.2 billion; Price-to-sales ratio: 1.9; Dividend yield: 4.4%; TSINetwork Rating: Above Average; www.pepsico.com) recently completed its acquisition of the Poppi brand of low-calorie sodas....

1 min read

Pat McKeough

Growth Stocks

ABB has its eye on a spinoff

ABB LTD. ADRs $57 is a buy. This Swiss-based company (Over-the-counter Pink Sheets symbol ABBNY; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.8 billion; Market cap: $102.6 billion; Price-to-sales ratio: 3.2; Dividend yield: 1.7%; TSINetwork Rating: Above Average; www.abb.com) is a leading maker of electrical transformers, transmission systems and circuit breakers for electrical utilities.

The company now plans to spin off its robotic equipment business as a separate firm....

1 min read

Pat McKeough

Growth Stocks

Rising cocoa costs hurt earnings

MONDELEZ INTERNATIONAL INC. $67 is still a buy for long-term gains. The company (Nasdaq symbol MDLZ; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.3 billion; Market cap: $87.1 billion; Price-to-sales ratio: 2.5; Dividend yield: 2.8%; TSINetwork Rating: Above Average; www.mondelezinternational.com) makes snack foods such as cookies and chocolate bars....

1 min read

Pat McKeough

Growth Stocks

Amazon.com partners with major German utility RWE

Through its Amazon Web Services (AWS), Amazon.com is one of the world’s largest providers of cloud infrastructure services. And, like its rivals, it needs lots of electricity to power its operations—including its AI development and service offerings.

AMAZON.COM INC., $212.52, remains a buy. The company’s (Nasdaq symbol AMZN; TSINetwork Rating: Average) (www.amazon.com; Shares outstanding: 10.6 billion; Market cap: $2.3 trillion; No dividends paid) has just announced a strategic framework agreement with giant German utility RWE.

The deal will see the utility provide clean power delivery and in exchange receive cloud services....

1 min read

Pat McKeough

Growth Stocks

Here are updates on two of your buys

Long-time readers know that we aim to keep you informed of important news about the stocks we cover. That means highlighting developments and plans that promise to bolster investor gains. Here are two buys that stand out this month:

WARNER MUSIC GROUP, $26.34, is a buy. The company (Nasdaq symbol WMG; TSINetwork Rating: Average) (www.wmg.com; Shares outstanding: 515.7 million; Market cap: $13.7 billion; Dividend yield: 2.7%), as well as Universal Music Group and Sony Music Group, are now negotiating licensing deals with two startups that could set a new precedent for how songs are used and how artists are paid for remixes generated by artificial intelligence (AI).

The three companies want to be compensated by startups Suno and Udio when music by artists they represent is used to train generative AI models and produce new music....

2 min read

Pat McKeough

Growth Stocks

Firehouse Subs adds Mexico

RESTAURANT BRANDS INTERNATIONAL, $66.09, is a buy. The company (New York symbol QSR; TSINetwork Rating: Average) (www.rbi.com; Shares outstanding: 478.0 million; Market cap: $30.1 billion; Dividend yield: 3.8%) has now entered into an agreement to develop and grow Firehouse Subs in Mexico....

1 min read

Pat McKeough

Growth Stocks

Buy these niche retailers with bright futures

Many traditional bricks-and-mortar retailers continue to struggle against the pandemic onslaught of online shopping and the impact of past inflation. Still, we believe the unique markets of TJX and North West offer you the possibility of strong gains ahead.

NORTH WEST COMPANY, $49.44, is a buy. This retailer (Toronto symbol NWC; TSINetwork Rating: Extra Risk) (www.northwest.ca; Shares outstanding: 47.8 million; Market cap: $2.4 billion; Dividend yield: 3.2%) sells food, and everyday products and services through 227 stores....

2 min read

Pat McKeough

Growth Stocks

We see limited prospects here

You should remain wary of stocks that attract broker/media attention because of high-profile products or services, and their business models. Here’s a closer look at one stock with risks that prospective investors should take into consideration:

DOXIMITY INC., $57.04, (New York symbol DOCS; TSINetwork Rating: Extra Risk) (doximity.com; Shares o/s: 136.9 million; Market cap: $10.7 billion; No dividend) operates the Doximity Network, an online professional network for doctors.

Founded in 2010, the San Francisco-based company’s “LinkedIn for doctors” platform is cloud-based and lets medical professionals collaborate with their colleagues, securely coordinate patient care, conduct virtual patient visits, and stay up to date with the latest medical news and research.

Doximity’s already-high market penetration among medical professionals and advertisers is a plus, but it is also a risk factor for investors....

1 min read

Pat McKeough

Growth Stocks

Be selective to maximize your AI returns

Artificial intelligence (AI) is an example of an investment idea that could boost your investment returns, or, more likely, end up costing you money. All in all, we think that the biggest, surest gains from AI will come from investing in established businesses that are already profitable and growing, and that can gain all the more by applying AI to their operations.

Here are two companies that are already profitably taking advantage of AI, and they should be among the leaders in the push to extend AI’s use:

EXPEDIA GROUP INC., $162.46, is a buy. The company (Nasdaq symbol EXPE; TSINetwork Rating: Average) (www.expediagroup.com; Shares outstanding: 142.6 million; Market cap: $20.7 billion; Dividend yield: 1.0%) has now unveiled Expedia Trip Matching....

1 min read

Pat McKeough

Growth Stocks

Disney expands in Abu Dhabi

WALT DISNEY CO., $117.86, is a buy. The company (New York symbol DIS; TSINetwork Rating: Above Average) (Shares o/s: 1.8 billion; Market cap: $211.9 billion; Dividend yield: 0.9%) is now planning a new theme park in Abu Dhabi.

The new Disneyland project will be the company’s seventh global park....

1 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.