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

Tighter focus will benefit Archer Daniels

ARCHER DANIELS MIDLAND CO. $41 (New York symbol ADM; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 559.2 million; Market cap: $22.9 billion; Price-to-sales ratio: 0.4; Divd. yield: 3.4%; TSINetwork Rating: Above Average; www.adm.com) processes corn, wheat, soybeans, flaxseed, peanuts and other crops to make a variety of ingredients such as flour, oils and sweeteners....

2 min read

Pat McKeough

Growth Stocks

IPO first step in eventual sale

MCKESSON CORP. $139 (New York symbol MCK; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 186.4 million; Market cap: $25.9 billion; Price-to-sales ratio: 0.1; Dividend yield 1.1%; TSINetwork Rating: Above Average; www.mckesson.com) is the largest wholesale drug distributor in the U.S....

1 min read

Pat McKeough

Growth Stocks

MTS acquisition set to boost earnings

MTS SYSTEMS CORP. $56 (Nasdaq symbol MTSC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 18.0 million; Market cap: $1.0 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.1%; TSINetwork Rating: Average; www.mts.com) paid $80.0 million for E2M Technologies B.V....

1 min read

Pat McKeough

Growth Stocks

We see both these stocks moving higher

On November 1, 2016, Arconic spun off its bulk aluminum business (Alcoa) as a separate company. Each investor received one Alcoa Corp. share for every three ARNC shares they owned.

Arconic has gained 34% since the split, but Alcoa is down 21%....

2 min read

Pat McKeough

Growth Stocks

Keysight adds a new niche

KEYSIGHT TECHNOLOGIES INC. $94 (New York symbol KEYS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 188.2 million; Market cap: $17.7 billion; Price-to-sales ratio: 4.2; No dividends paid; TSINetwork Rating: Average; www.keysight....

1 min read

Pat McKeough

Growth Stocks

Higher profits despite currency rates

SNAP-ON INC. $156 (New York symbol SNA; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 55.4 million; Market cap: $8.6 billion; Price-to-sales ratio: 2.6; Dividend yield: 2.5%; TSINetwork Rating: Average; www.snapon.com) makes tools for auto mechanics and sells them through a fleet of franchised vans that visit garages....

1 min read

Pat McKeough

Growth Stocks

Moves should cut Apple’s tariff risk

APPLE INC. $208 (Nasdaq symbol AAPL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.6 billion; Market cap: $956.8 billion; Price-to-sales ratio: 3.7; Dividend yield: 1.5%; TSINetwork Rating: Average; www.apple.com) is now moving some of its production away from China to other countries in Asia to avoid U.S....

1 min read

Pat McKeough

Growth Stocks

UTX moves will spur gains

UNITED TECHNOLOGIES CORP. $135 (New York symbol UTX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 862.3 million; Market cap: $116.4 billion; Price-to-sales ratio: 1.6; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.utc.com) completed its acquisition of Rockwell Collins in November 2018, for $30.6 billion in cash and stock (including that firm’s debt)....

1 min read

Pat McKeough

Growth Stocks

Nissan pursues key deal

NISSAN MOTOR (ADR) $14.09 (Nasdaq symbol NSANY; TSINetwork Rating: Above Average)(310-771-3111; www.nissan-global.com; ADRs o/s: 2.1 billion; Market cap: $28.0 billion; Dividend yield: 6.0%) and its Chinese partner Dongfeng Group are in talks with Didi Chuxing to launch a joint venture to manage car fleets for Didi’s ride-hailing and car-sharing services.

The three firms are also exploring the possibility of designing and building vehicles tailored to Didi’s ride-hailing service....

1 min read

Pat McKeough

Growth Stocks

ACI expands in Egypt

ACI WORLDWIDE $34.03 (Nasdaq symbol ACIW; TSINetwork Rating: Extra Risk) (402-390-7600; www.aciworldwide.com; Shares outstanding: 110.6 million; Market cap: $3.8 billion; No dividends paid) makes software for processing transactions by credit cards, debit cards, automated teller machines, point-of-sale terminals and interbank systems....

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.