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

Archer Daniels lifts your income

ARCHER DANIELS MIDLAND CO. $33 is a buy. This company (New York symbol ADM; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 556.7 million; Market cap: $18.4 billion; Price-to-sales ratio: 0.3; Divd. yield: 4.4%; TSINetwork Rating: Above Average; www.adm.com) is a leading processor of corn, wheat, soybeans, canola and other crops for flour, oils and other food ingredients....

1 min read

Pat McKeough

Growth Stocks

Fast-food still a good pick for your portfolio

In response to the COVID-19 coronavirus outbreak, these four fast-food operators have closed their dine-in areas. However, they continue to serve customers with take-out and drive-thru facilities. Recent investments in their home-delivery operations have proven timely, as those upgrades are now helping them cope as more people eat at home.

We feel that all four will rebound quickly in the next few months once they resume normal operations....

7 min read

Pat McKeough

Growth Stocks

Slack’s surge in demand will pay off for you

Slack Technologies’ software plays into a rapidly expanding modern trend—remote working. That trend has only gathered strength with the big swing in work-from-home spurred by the COVID-19 virus.

However, we liked this Power Buy before the current crisis, and we still like it now for its strong future potential.

SLACK TECHNOLOGIES INC....

2 min read

Pat McKeough

Growth Stocks

Investors should be on board when Domino’s surges anew

Domino’s soared to a new all-time high of $382 in mid-February. But even with the recent market fall, it has only dropped to where it was before that leap. The jump came from a stellar quarter of earnings spurred by changes that, coincidentally, will serve it very well in the current “social distancing” environment.

DOMINO’S PIZZA $290.00 (New York symbol DPZ; TSINetwork Rating: Average) (www.dominos.com; Shares o/s: 39.0 billion; Market cap: $11.3 billion; Divd....

1 min read

Pat McKeough

Growth Stocks

Now is a good time for you to buy this eatery

Since COVID-19, Texas Roadhouse has dropped along with the market, but we think it’s well-positioned to weather the storm and then bounce back even stronger.

As concern over the COVID-19 virus spreads, it’s highly likely that people will visit restaurants less....

2 min read

Pat McKeough

Growth Stocks

Here’s a Power Buy dominating in China for investors

Subscriber update on April 3, 2020

We now see Luckin Coffee as a sell. The stock has dropped sharply on news that the company’s board of directors is investigating reports that senior executives and employees engaged in financial misconduct. Luckin is looking into allegations that chief operating officer Jian Liu and other employees reporting faked sales transactions amounting to $310 million.
The company’s long-term business model appears intact, and while the allegations are serious, the huge drop may more reflect today’s extremely volatile markets rather than the impact of the potential misconduct....

1 min read

Pat McKeough

Growth Stocks

Adobe set to keep your gains coming

Adobe has dropped 24.3% from the all-time peak of $389 it reached in February 2020. Even so, it’s still up 16% over the last year, and up a spectacular 5,900.2% since we first recommended it in July 1998.

In 2011, the software provider was one of the first to end sales of boxed software and move its products to a software-as-a-service model....

3 min read

Pat McKeough

Growth Stocks

Updates on your Conservative stocks: Maple Leaf Foods Inc., Finning International Inc. and Molson Coors Canada Inc.

MAPLE LEAF FOODS INC. $21 (www.mapleleaffoods.com) is still a hold. The processed-meat producer continues to invest heavily in the fast-growing meat substitute market to add value for investors. Annual sales of those products rose 27.3% to $176.4 million in 2019....

1 min read

Pat McKeough

Growth Stocks

SNC aims to cut your risk

SNC-LAVALIN GROUP INC. $27 is still a hold. The engineering company (Toronto symbol SNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 175.6 million; Market cap: $4.7 billion; Price-to-sales ratio: 0.5; Divd. yield: 0.3%; TSINetwork Rating: Average; www.snclavalin.com) is following a new strategy that mainly involves exiting lump-sum, turnkey construction projects that expose investors to the added risk of cost overruns....

1 min read

Pat McKeough

Growth Stocks

Here are four new aggressive buys for you: FirstService Corp., Colliers International Group Inc., Stantec Inc. and Leon’s Furniture

We’re promoting four stocks from our Power Growth Investor newsletter to our Successful Investor Aggressive Growth Portfolio. The move reflects their now-large market caps and their established dividend histories. That means they now warrant your consideration.

While they remain riskier than many of our TSI recommendations, these four are leaders in their fields and are using acquisitions to stay on top....

7 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.

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Financial Post Columnist
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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.

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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.