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.

Read More Close

Growth Stocks Library Archives

Growth Stocks

Here’s 4 top picks for fintech growth

A financial technology, or “fintech,” stock typically offers one, or several, financial services that rely on technology to gain efficiencies. While there are many startup firms in this field, we prefer well-established companies, such as the four we analyze below, with the resources to develop their own fintech technologies.

VISA INC....

5 min read

Pat McKeough

Growth Stocks

Their tighter focus is paying off

In 2014, Agilent, a long-time favourite of ours, spun off its electronics-testing business (Keysight) as a separate company. The move made sense, as it let Agilent focus on its main medical lab equipment business.

Keysight has mostly stayed in a narrow range since the split, but a recent acquisition has helped push it up nearly 40% since the beginning of the year....

4 min read

Pat McKeough

Growth Stocks

Texas Roadhouse has better prospects

TEXAS ROADHOUSE $59.73 (Nasdaq symbol TXRH; TSINetwork Rating: Extra Risk) (502-426-9984; www.texasroadhouse.com; Shares o/s: 71.7 million; Market cap: $4.3 billion; Divd yield: 2.0%) is a full-service, casual-dining chain with 582 locations spread across 49 U.S....

2 min read

Pat McKeough

Growth Stocks

Marketing falls short

WEIGHT WATCHERS INTERNATIONAL $20.26 (Nasdaq symbol WTW; TSINetwork Rating: Extra Risk) (212-589-2700; www.ww.com; Shares o/s: 67.0 million; Market cap: $1.3 billion; No dividends paid) had 3.9 million active subscribers at the end of 2018. That was down 7.1% from the 4.2 million subscribers Weight Watchers had on September 30, 2018.

The company rebranded itself as WW last fall, and its problems with signing up new subscribers may be related to the name change....

1 min read

Pat McKeough

Growth Stocks

AMZN distrupts grocers

AMAZON.COM $1,690.81 (Nasdaq symbol AMZN; TSINetwork Rating: Average) (206-266-1000; www.amazon.com; Shares outstanding: 491.2 million; Market cap: $821.8 billion; No dividends paid) continues to disrupt a range of industries. The latest move centres on its reported plan to open dozens of grocery stores in several major U.S....

1 min read

Pat McKeough

Growth Stocks

Tims makes key debut

RESTAURANT BRANDS INTERNATIONAL $63.04 (New York symbol QSR; TSINetwork Rating: Average) (905-845-6511; www.rbi.com; Shares outstanding: 478.0 million; Market cap: $30.1 billion; Dividend yield: 3.2%) has opened its first Tim Hortons restaurant in China, in the People’s Square in Shanghai....

1 min read

Pat McKeough

Growth Stocks

Symantec adds expertise

SYMANTEC CORP. $22.95 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (650-527-8000; www.symantec.com; Shares o/s: 639.2 million; Market cap: $14.4 billion; Dividend yield: 1.3%) sells computer-security technology, including antivirus and email-filtering software, to both businesses as well as consumers....

1 min read

Pat McKeough

Growth Stocks

Research keeps these two in the lead

SIERRA WIRELESS $16.98 (Toronto symbol SW; TSINetwork Rating: Extra Risk) (604-231-1100; www.sierrawireless.com; s/o: 36.1 million; Market cap: $617.2 million; No dividends paid) makes digital components that connect products, including smart electricity meters, automobiles, fleet and transit vehicles, and home security systems, to the Internet....

2 min read

Pat McKeough

Growth Stocks

Pot offers growth

ALIMENTATION COUCHE-TARD $74.54 (Toronto symbol ATD.B: TSINetwork Rating: Average) (1-800-361-2612; www.couchetard.com; Shares o/s: 567.4 million; Market cap: $42.7 billion; Yield: 0.5%), together with Canopy Growth (symbol WEED on Toronto), has entered into a trademark licensing agreement with one winner of the Ontario Alcohol and Gaming Commission’s 25 cannabis retailer licences.

That lottery winner will operate a “Tweed” branded retail store in London, Ontario, starting on April 1....

1 min read

Pat McKeough

Growth Stocks

Urban focus enhances RioCan’s prospects

RIOCAN REAL ESTATE INVESTMENT TRUST $25 (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units o/s: 304.6 million; Market cap: $7.6 billion; Price-to-sales ratio: 6.5; Dividend yield: 5.8%; TSINetwork Rating: Average; www.riocan.com) owns all or part of 233 shopping centres and other rental properties in Canada....

2 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.

Jonathan Chevreau
Financial Post Columnist
As a manager of more than $500 million in mutual funds, I have access to the best brokerage research available in this country. But I still take time to read Pat McKeough’s premium newsletters

John Sartz
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.

Chuck J.
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.