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

Visa still appealing after big surge

Visa’s shares have soared 800% since we first recommended them in our December 2010 issue at $19 (adjusted for splits). We were originally drawn to the company’s unique business model, which lets it profit as more people use credit and debit cards instead of cheques and cash....

4 min read

Pat McKeough

Growth Stocks

High research spending cuts their risk

Computer equipment and software companies operate in a highly volatile field. A start-up firm with a better product can quickly gain market share and force well-established firms out of business.

The best technology stocks are those that can afford to keep adding profitable new products and improving existing ones....

5 min read

Pat McKeough

Growth Stocks

These top techs serve growing markets

SHOPIFY INC. $434.95 (Toronto symbol SHOP; TSINetwork Rating: Extra Risk) (613-241-2828; www.shopify.ca; Shares outstanding: 111.5 million; Market cap: $48.5 billion; No dividend) offers merchants of all sizes Internet-based software to design, set up and manage stores across multiple sales channels.

Shopify continues to attract more merchants to its platform....

2 min read

Pat McKeough

Growth Stocks

Amazon adds Go stores

AMAZON.COM $1,908.79 (Nasdaq symbol AMZN; TSINetwork Rating: Average) (206-266-1000; www.amazon.com; Shares o/s: 492.3 million; Market cap: $920.5 billion; No divds. paid) continues to expand into bricks-and-mortar retailing with its 13th Amazon Go store....

1 min read

Pat McKeough

Growth Stocks

Broadridge adds a niche

BROADRIDGE FINANCIAL SOLUTIONS $130.56 New York symbol BR; TSINetwork Rating: Average) (201-714-3000; www.broadridge.com; Shares outstanding: 116.1 million; Market cap: $15.1 billion; Dividend yield: 1.5%) has completed the acquisition of Ireland-based Rockall Technologies Ltd....

1 min read

Pat McKeough

Growth Stocks

FirstService fills a gap

FIRSTSERVICE CORP. $131.32 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 34.7 million; Market cap: $4.7 billion; Dividend yield: 0.6%) has agreed to buy Global Restoration Holdings, the parent company of Interstate Restoration and FirstOnSite Restoration....

1 min read

Pat McKeough

Growth Stocks

Updating Wyndham Hotels & Resorts, Stantec Inc. and Calian Group

WYNDHAM HOTELS & RESORTS $56.34 (New York symbol WH; TSI Rating: Extra Risk) (973-753-6000; www.wyndhamhotels.com; Shares outstanding: 97.9 million; Market cap: $5.2 billion; Dividend yield: 2.1%) is the world’s largest hotel franchisor with nearly 9,157 properties spread across 80 countries.

The company’s Wyndham Rewards program has more than 50 million members and will now partner with food delivery service DoorDash....

2 min read

Pat McKeough

Growth Stocks

R&D opens new markets

SIERRA WIRELESS $15.87 (Toronto symbol SW; TSINetwork Rating: Extra Risk) (604-231-1100; www.sierrawireless.com; Shares outstanding: 36.2 million; Market cap: $575.9 million; No dividends paid) faces challenges this year: sales in the automotive industry, a big market for the company, are slowing; and a continuing shortage of Intel chips has hurt the expansion of Internet of Things (IoT) connectivity in the mobile phone market.

Still, as new auto systems come into production in mid-2019, Sierra should profit....

1 min read

Pat McKeough

Growth Stocks

We’re adding ResMed to our picks

RESMED INC. $120.54 (New York symbol RMD; TSINetwork Rating: Average) (800-424-0737; www.resmed.com; Shares o/s: 143.4 million; Market cap: $16.9 billion; Divd. yield: 1.2%) makes and distributes CPAP (nasal continuous positive airway pressure) medical devices....

2 min read

Pat McKeough

Growth Stocks

Our top aggressive pick has a bright future

2 min read

Pat McKeough

Testimonials

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Investors Association of Canada
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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
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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.