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

Sierra is the better tech buy right now

ADOBE SYSTEMS INC. $309.39 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408-536-6000; www.adobe.com; Shares outstanding: 485.4 million; Market cap: $148.4 billion; No dividends paid) makes software that lets computer users create, edit and share documents in the popular PDF format.

The company’s decision a few years ago to switch to selling its programs as ongoing subscriptions instead of onetime purchases continues to pay off: In the three months ended May 31, 2019, Adobe’s revenue rose 25.0%, to a record $2.74 billion from $2.20 billion....

2 min read

Pat McKeough

Growth Stocks

SYMC draws a bid

SYMANTEC CORP. $22.68 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (650-527-8000; www.symantec.com; Shares o/s: 618.2 million; Market cap: $14.6 billion; Divd. yield: 1.3%) jumped to over $26 on recent reports that it was in advanced talks with a potential buyer, Broadcom Inc....

1 min read

Pat McKeough

Growth Stocks

Here’s our Pick of the Month

ALIMENTATION COUCHE-TARD $81.45 (Toronto symbol ATD.B: TSINetwork Rating: Average) (1-800-361-2612; www.couchetard.com; Shares outstanding: 564.4 million; Market cap: $46.8 billion; Dividend yield: 0.6%) operates 12,575 convenience stores throughout North America and Europe....

1 min read

Pat McKeough

Growth Stocks

Both parent and spinoff offer appeal

Studies show that both a spinoff and its parent company perform better than comparable firms for several years following their split. That’s especially so with industry leaders like these two. We think both have gains ahead.

WYNDHAM DESTINATIONS $46.37 (New York symbol WYND; TSI Rating: Extra Risk) (973-753-6000; www.wyndhamdestinations.com; Shares outstanding: 93.6 million; Market cap: $4.4 billion; Dividend yield: 3.9%) is the former Wyndham Worldwide (WYN)....

2 min read

Pat McKeough

Growth Stocks

Thomson still appealing after jump

THOMSON REUTERS CORP. $87 (Toronto symbol TRI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 500.5 million; Market cap: $43.5 billion; Price-to-sales ratio: 7.8; Divd. yield: 2.2%; TSINetwork Rating: Above Average; www.thomsonreuters.com) has jumped 36% since it sold 55% of its Refinitiv financial information business on October 1, 2018, for $17 billion (all amounts except share price and market cap in U.S....

1 min read

Pat McKeough

Growth Stocks

Maple Leaf aims to profit from fake meat

MAPLE LEAF FOODS INC. $29 (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares o/s: 124.4 million; Market cap: $3.6 billion; Price-to-sales ratio: 1.0; Dividend yield: 2.0%; TSINetwork Rating: Average; www.mapleleaffoods.com) sells fresh and prepared meats under the Maple Leaf and Schneider brands.

In response to changing consumer tastes, the company has expanded beyond its traditional products....

1 min read

Pat McKeough

Growth Stocks

CN prepares for shifting demand

CANADIAN NATIONAL RAILWAY CO. $122 (Toronto symbol CNR; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 720.7 million; Market cap: $87.9 billion; Price-to-sales ratio: 6.0; Dividend yield: 1.8%; TSINetwork Rating: Above Average; www.cn.ca) operates Canada’s largest railway, stretching across the country, and passes through the U.S....

1 min read

Pat McKeough

Growth Stocks

Shoppers taps blockchain

LOBLAW COMPANIES $67.24 (Toronto symbol L; Shares outstanding: 369.1 million; Market cap: $24.5 billion; TSINetwork Rating: Above Average; Dividend yield: 1.9%; www.loblaw.ca) feels its Shoppers Drug Mart stores give it a strong platform to profit from the legalization of cannabis.

Shoppers is now teaming up with California-based software developer TruTrace Technologies....

1 min read

Pat McKeough

Growth Stocks

Updating Sony Corp. ADRs, Pepsico Inc. and Sherwin-Williams Co.

SONY CORP. ADRs $52 (www.sony.net) has come under pressure from activist investor Daniel Loeb, who through his Third Point hedge fund controls $1.5 billion of the company’s shares, or about 2% of its market cap. The activist wants Sony to spin off its chip business as a separate company, and sell its stakes in publicly traded firms, including Sony Financial, Olympus and Spotify....

1 min read

Pat McKeough

Growth Stocks

This recent Consumer buy is now up 42.5%

STARBUCKS CORP. $83 (Nasdaq symbol SBUX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 1.2 billion; Market cap: $99.6 billion; Price-to-sales ratio: 4.0; Dividend yield: 1.7%; TSINetwork Rating: Above Average; www.starbucks.com) is a leading seller and roaster of specialty coffee....

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.