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

Let CAE add to your whopping 46% gain

The outbreak of coronavirus in China will likely slow air travel volumes and demand for new planes. However, investors in CAE should add considerably to their 46% gain in the past year as airlines send more of their pilots to the company’s flight training centres....

2 min read

Pat McKeough

Growth Stocks

Toromont just gave you a 14.8% boost

TOROMONT INDUSTRIES LTD. $73 is a buy. The company (Toronto symbol TIH; Aggressive Growth Portfolio; Manufacturing & Industry sector; Shares outstanding: 81.8 million; Market cap: $6.0 billion; Price-to-sales ratio: 1.6; Dividend yield: 1.7%; TSINetwork Rating: Extra Risk; www.toromont.com) distributes a range of industrial equipment, including Caterpillar machinery, in eastern Canada....

1 min read

Pat McKeough

Growth Stocks

Use these 3 to spur your Aggressive returns

Stocks from our Aggressive Portfolio tend to produce outsized gains for investors—like your 21% return from the first stock just below. Still, aggressive investments can also lose you money. That’s why we recommend limiting these holdings to no more than 30% of your portfolio.

Here are three aggressive stocks that we see as particularly attractive buys right now....

5 min read

Pat McKeough

Growth Stocks

Saputo needs a new catalyst

SAPUTO INC. $41 is still a hold. Canada’s leading dairy producer (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 407.7 million; Market cap: $16.7 billion; Price-to-sales ratio: 1.2; Dividend yield: 1.7%; TSINetwork Rating: Average; www.saputo.com) continues to face growing competition from plant-based products such as almond milk....

1 min read

Pat McKeough

Growth Stocks

Tap into Loblaw’s tech

LOBLAW COMPANIES $69.82, is a buy. Through this stock (Toronto symbol L; Shares o/s: 366.1 million; Market cap: $25.1 billion; TSINetwork Rating: Above Average; Divd. yield: 1.8%; www.loblaw.ca) investors tap a chain of 1,087 supermarkets and 1,341 Shoppers Drug Mart pharmacies across Canada.

And now, investors will also gain from the company’s latest move to thrive in an intensely competitive industry marked by slim profit margins....

1 min read

Pat McKeough

Growth Stocks

Updating our Aggressive stocks: MTS Systems Corp., Nvidia Corp. and Keysight Technologies Inc.

MTS SYSTEMS CORP. $52 (www.mts.com) remains a hold. The company continues to use acquisitions to fuel its growth, which add risk for investors. Its latest purchase is R&D, a privately held Danish firm that specializes in test systems that simulate extreme operating environments for large, rotating structures such as wind turbines....

1 min read

Pat McKeough

Growth Stocks

Broadridge is ready to add to your 30% gain

Broadridge was our #1 Aggressive stock for 2019, and it handed investors a sizeable 30% gain. While we decided to go with Alphabet as our top Aggressive pick in 2020, Broadridge is still a strong choice for the Aggressive portion of your portfolio. The company continues to dominate its niche industry and stands to gain from new regulations that require brokers to disclose more information to their clients.

BROADRIDGE FINANCIAL SOLUTIONS INC....

2 min read

Pat McKeough

Growth Stocks

Cost cuts should add to your 66% gain

ARCONIC INC. $31 is still a buy. The company (New York symbol ARNC; Conservative Growth Portfolio, Manufacturing & Industry sector; shares o/s: 432.9 million; Market cap: $13.4 billion; P.S. ratio: 1.0; Divd. yield: 0.3%; TSINetwork Rating: Average; www.arconic.com) is a leader in engineered aluminum for cars, buildings and jet engines.

Arconic continues to close older, less-efficient facilities....

1 min read

Pat McKeough

Growth Stocks

State Street’s low p/e cuts your risk

STATE STREET CORP. $76 is a buy. The company (New York symbol STT; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 357.4 million; Market cap: $27.2 billion; Price-to-sales ratio: 2.4; Divd. yield: 2.7%; TSINetwork Rating: Average; www.statestreet.com) sells accounting and administrative services to operators of mutual funds and pension plans....

1 min read

Pat McKeough

Growth Stocks

Becton’s 27% gain is just the start

BECTON DICKINSON & CO. $282 is a buy. The company (New York symbol BDX; Conservative Growth Portfolio; Consumer sector; Shares o/s: 271.0 million; Market cap: $76.4 billion; Price-to-sales ratio: 4.4; Divd. yield: 1.1%; TSINetwork Rating: Above Average; www.bd.com)....

1 min read

Pat McKeough

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Investors Association of Canada
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Financial Post Columnist
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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.

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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.