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

Hold on to these real estate picks

FIRSTSERVICE CORP. $115.56 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 36.0 million; Market cap: $4.2 billion; Dividend yield: 0.7%) set up its commercial real estate business, Colliers International Group, as a separate company on June 1, 2015 (see this page)....

2 min read

Pat McKeough

Growth Stocks

QSR has big growth plans

RESTAURANT BRANDS INTERNATIONAL $68.73 (New York symbol QSR; TSINetwork Rating: Average) (905-845-6511; www.rbi.com; Shares o/s: 478.0 million; Market cap: $32.9 billion; Dividend yield: 2.9%) has 17,796 Burger King, 4,846 Tim Hortons (coffee and donuts) and 3,102 Popeyes Louisiana Kitchen (crispy fried chicken) outlets in over 100 countries.

The company now plans to expand to over 40,000 outlets in the next eight to 10 years....

1 min read

Pat McKeough

Growth Stocks

Both their share prices and p/e’s are up

DOMINO’S PIZZA $284.43 (New York symbol DPZ; TSINetwork Rating: Average) (734-930-3008; www.dominos.com; Shares outstanding: 41.1 million; Market cap: $11.7 billion; Dividend yield: 0.9%) is the world’s largest chain of pizza stores offering takeout and delivery....

2 min read

Pat McKeough

Growth Stocks

Nissan taps key market

NISSAN MOTOR (ADR) $13.60 (Nasdaq symbol NSANY; TSINetwork Rating: Above Average) (310-771-3111; www.nissan-global.com; ADRs outstanding: 2.1 billion; Market cap: $34.7 billion; Dividend yield: 6.1%) has announced that the first electric vehicle for its premium brand, Infiniti, will be a sporty sedan produ...

1 min read

Pat McKeough

Growth Stocks

We did it again

WESTJET AIRLINES $30.18 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1-877-493-7853; www.westjet.com; Shares outstanding: 114.0 million; Market cap: $3.4 billion; Dividend yield: 1.9%) serves over 100 destinations in North America, Central America, the Caribbean and Europe.

The stock is now up over 64% after the company recently accepted a $31.00-a-share all-cash takeover offer from Onex Corp....

1 min read

Pat McKeough

Growth Stocks

Big purchase spurs Toromont gains

TOROMONT INDUSTRIES LTD. $60 (Toronto symbol TIH; Aggressive Growth Portfolio; Manufacturing & Industry sector; Shares outstanding: 81.5 million; Market cap: $5.0 billion; Price-to-sales ratio: 1.4; Dividend yield: 1.8%; TSINetwork Rating: Extra Risk; www.toromont.com) distributes a broad range of industrial equipment (such as bulldozers, backhoe loaders and drills), including Caterpillar machinery, in eastern Canada and the Eastern Seaboard of the U.S....

2 min read

Pat McKeough

Growth Stocks

CAE gains from Boeing’s woes

CAE INC. $32 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 265.0 million; Market cap: $8.5 billion; Price-to-sales ratio: 2.8; Dividend yield: 1.3%; TSINetwork Rating: Average; www.cae.com) is a leading maker of flight simulators for commercial and military aircraft....

1 min read

Pat McKeough

Growth Stocks

Production shift benefits investors

BOMBARDIER INC. (Toronto symbols BBD.A $2.04 and BBD.B $2.00; Aggressive Growth Portfolio, Manufacturing &Industry sector; Shares o/s: 2.4 billion; Market cap: $4.8 billion; Price-to-sales ratio: 0.3; Dividend suspended in February 2015; TSINetwork Rating: Speculative; www.bombardier.com) plans to sell its plant in Belfast, Northern Ireland, which makes wings for the Airbus A220 jetliner as well as other aircraft components....

1 min read

Pat McKeough

Growth Stocks

Big acquisition cuts Transcontinental’s risk

TRANSCONTINENTAL INC. $15 (Toronto symbol TCL.A; Aggressive Growth Portfolio, Consumer sector; Shares o/s: 87.3 million; Market cap: $1.3 billion; Price-to-sales ratio: 0.5; Dividend yield: 5.9%; TSINetwork Rating: Average; www.tctranscontinental.com) completed its $1.7 billion acquisition of Chicago-based Coveris Americas in May 2018....

1 min read

Pat McKeough

Growth Stocks

Meatless investments set to pay off

MAPLE LEAF FOODS INC. $32 (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 123.5 million; Market cap: $4.0 billion; Price-to-sales ratio: 1.1; Dividend yield: 1.8%; TSINetwork Rating: Average; www.mapleleaffoods.com) sells fresh and prepared meats under the Maple Leaf and Schneider brands.

Sales in the three months ended March 31, 2019, rose 11.0%, to $907.1 million from $817.5 million a year earlier....

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.