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

Updating your aggressive stocks: Teradata Corp., Idexx Laboratories Inc. and Yum! Brands Inc.

TERADATA CORP., $29, (www.teradata.com) is still a hold. It makes computers and software to capture and store large amounts of data for individual businesses—its clients. It then analyzes that information and identifies consumer buying habits and other trends....

1 min read

Pat McKeough

Growth Stocks

An overlooked asset helps boost your profits

Mondelez investors have already seen a 32% gain this year, and the company’s ongoing cost cuts should send the stock even higher. Its stake in a leading beverage firm is also set to boost your returns.

MONDELEZ INTERNATIONAL INC., $53, remains a buy. The company (Nasdaq symbol MDLZ; Conservative Growth Portfolio, Consumer sector; Shares o/s: 1.4 billion; Market cap: $74.2 billion; Price-to-sales ratio: 3.0; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.mondelezinternational.com) makes cookies and crackers (Oreo, Ritz), chocolate bars (Cadbury, Toblerone), gum and candy (Trident, Dentyne) and Halls cough drops.

Mondelez’s 13.8% stake in Keurig Dr Pepper Inc....

2 min read

Pat McKeough

Growth Stocks

Here are key updates on your WSSF picks: Adobe Inc., Sherwin-Williams Co. and McKesson Corp.

ADOBE INC., $261, is still a worthwhile hold for aggressive investors. The company (Nasdaq symbol ADBE; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 484.1 million; Market cap: $126.4 billion; Price-to-sales ratio: 11.9; No dividends paid since June 2005; TSINetwork Rating: Average; www.adobe.com) makes software that lets computer users create, edit and share documents in the popular PDF format.

Investors continue to benefit from Adobe’s switch to selling its programs as ongoing subscriptions instead of one-time purchases....

2 min read

Pat McKeough

Growth Stocks

Keysight will let you tap 5G growth

KEYSIGHT TECHNOLOGIES INC., $103, is a buy. The company (New York symbol KEYS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares o/s 188.2 million; Market cap: $19.4 billion; P-to-S ratio: 4.6; No dividend paid; TSINetwork Rating: Average; www.keysight.com) makes devices for testing electronic equipment.

The company is teaming up with Chinese smartphone maker OPPO, The two firms will jointly operate a new laboratory in Shenzhen, China, that will help OPPO accelerate the development of new 5G (fifth generation) devices....

1 min read

Pat McKeough

Growth Stocks

Dumping Libra benefits Visa investors

VISA INC., $171, is still a buy. The world’s largest electronic payment processor (New York symbol V; Conservative Growth Portfolio, Finance sector; Shares outstanding: 2.3 billion; Market cap: $393.3 billion; Price-to-sales ratio: 17.2; Dividend yield: 0.6%; TSINetwork Rating: Above Average; www.visa.com) has dropped out of Facebook’s plan to launch a new cryptocurrency called Libra.

Visa joins other big financial companies that have abandoned the partnership, including MasterCard, PayPal and eBay....

1 min read

Pat McKeough

Growth Stocks

Their high returns help temper your risk

These three Finance-sector picks expose you to more risk than big banks like J.P. Morgan and Wells Fargo (see pages 101 and 102). However, their solid growth—one is up 58% in a year—makes them worthwhile additions to your portfolio. While we still like all three, you should limit new purchases to Broadridge and State Street....

5 min read

Pat McKeough

Growth Stocks

WELL’s 187% gain is just a start for investors

Your key to outsized gains is to find hidden gems before they come into the broker/media limelight. Some of the biggest profits that we’ve led subscribers to come from buying these stocks before they jump on wider investment demand.

WELL Health first attracted our attention after an investment by a Hong Kong billionaire earlier this year....

2 min read

Pat McKeough

Growth Stocks

Symantec’s possible takeover just adds appeal for investors

Symantec is a stock many of you already hold. It operates in the red-hot cyber security field, serving both businesses and consumers.

However, both those markets are highly competitive, and the company’s missteps over the last few years have held back its stock....

1 min read

Pat McKeough

Growth Stocks

Act on these three key recommendations: Shopify Inc., Sherritt International and BMTC Group

SHOPIFY INC. $426.94 (Toronto symbol SHOP; TSINetwork Rating: Extra Risk) (613-241-2828; www.shopify.ca; Shares outstanding: 115.5 million; Market cap: $49.2 billion; No dividends paid) offers merchants of all sizes Internet-based software to design, set up and manage their sales whether at bricks-and-mortar stores or online.

Shopify has launched a fulfilment network in the U.S., offering the hundreds of thousands of merchants now using its e-commerce platform faster and cheaper shipping to their own customers....

2 min read

Pat McKeough

Growth Stocks

Power Growth investors always aim to spot this top hidden asset

Research spending is a great hidden asset. Companies (like Adobe and ACI Worldwide on this page) mostly write off their research costs as they spend that money, and this depresses the current year’s earnings.

Standard accounting practice treats research spending as a regular expense like rent....

1 min read

Pat McKeough

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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.