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 Torstar Corp., Bombardier Inc., and Nutrien Ltd.

TORSTAR CORP. $1.00 (Toronto symbol TS.B; Aggressive Growth Portfolio; Consumer sector; Shares outstanding: 80.7 million; Market cap: $80.7 million; Price-to sales ratio: 0.2; TSINetwork Rating: Extra Risk; Dividend yield: 10.0%; www.torstar.com) publishes The Toronto Star, along with StarMetro commuter dailies in Toronto and four other major markets....

2 min read

Pat McKeough

Growth Stocks

BlackBerry shifts to self-driving cars

BLACKBERRY LTD. $12 (Toronto symbol BB; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 540.6 million; Market cap: $6.5 billion; Price-to-sales ratio: 7.6; No dividends paid; TSINetwork Rating: Speculative; www.blackberry.com) quit developing smartphones in 2016 as part of a plan to focus on its more promising security software business....

1 min read

Pat McKeough

Growth Stocks

They help diversify your finance holdings

We recommend most investors hold two to three of Canada’s Big Five banks; right now, our top two favourites are TD Bank and Bank of Nova Scotia.

We also advise adding non-bank stocks to your Finance sector holdings, including Great-West Lifeco and IGM Financial....

2 min read

Pat McKeough

Growth Stocks

Premium brands cut Peller’s risk

ANDREW PELLER LTD. (Toronto symbols ADW.A $13 and ADW.B $13; Income Portfolio, Consumer sector; Shares outstanding: 44.2 million; Market cap: $574.6 million; Price-to-sales ratio: 1.5; Dividend yield: 1.6%; www.andrewpeller.com) began operating in 1961, and is now Canada’s second-largest producer of wines, after Arterra Wines (formerly the Canadian division of Constellation Brands.) Peller’s wineries in Ontario, British Columbia, and Nova Scotia account of 14% of Canada’s wine market....

1 min read

Pat McKeough

Growth Stocks

Hewitt fuels Toromont’s gains

TOROMONT INDUSTRIES LTD. $69 (Toronto symbol TIH; Aggressive Growth Portfolio; Manufacturing & Industry sector; Shares o/s: 81.2 million; Market cap: $5.6 billion; P/S ratio: 1.6; Divd yield: 1.6%; TSINetwork Rating: Extra Risk; www.toromont.com) distributes a broad range of industrial equipment, including Caterpillar machinery, in eastern Canada....

1 min read

Pat McKeough

Growth Stocks

CGI could profit from Brexit

CGI INC. $90 (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 278.3 million; Market cap: $25.0 billion; Price-to-sales ratio: 2.1; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) is Canada’s largest provider of computer-outsourcing services....

1 min read

Pat McKeough

Growth Stocks

Latest purchase should pay off

TRANSCONTINENTAL INC. $17 (Toronto symbol TCL.A; Aggressive Growth Portfolio, Consumer sector; Shares o/s: 87.3 million; Market cap: $1.5 billion; Price-to-sales ratio: 0.5; Dividend yield: 5.2%; 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

CAE gets ready for rising demand

CAE expects global air travel volumes to rise 3.6% each year for the next decade. That’s good news for the company, which is the leading supplier of flight simulators and pilot-training services to the airline industry. In fact, CAE has roughly 70% of the global civilian simulator market.

The company also continues to expand its military training operations....

4 min read

Pat McKeough

Growth Stocks

Reorganization strengthens these two buys

LOBLAW COMPANIES $65.64 (Toronto symbol L; Shares outstanding: 371.9 million; Market cap: $24.1 billion; TSINetwork Rating: Above Average; Dividend yield: 1.8%; www.loblaw.ca) operates 1,085 supermarkets and 1,337 Shoppers Drug Mart pharmacies across Canada.

On November 1, 2018, Loblaw transferred its stake in Choice Properties REIT (symbol CHP.UN on Toronto) to its parent company George Weston Ltd....

2 min read

Pat McKeough

Growth Stocks

Shrewd acquisitions spur Genuine Parts

GENUINE PARTS CO. $109 (New York symbol GPC; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 146.8 million; Market cap: $16.0 billion; Price-to-sales ratio: 0.9; Dividend yield: 2.8%; TSINetwork Rating: Average; www.genpt.com) sells replacement auto parts through company-owned stores (under the NAPA banner) and independent outlets in North America, Europe, Australia and New Zealand....

2 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.