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 Sherwin-Williams Co., Ford Motor Co. and Tegna Inc.

SHERWIN-WILLIAMS CO. $427 (New York symbol SHW; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 92.2 million; Market cap: $39.4 billion; Price-to-sales ratio: 2.2; Dividend yield: 1.1%; TSINetwork Rating: Above Average; www.sherwin-williams.com) acquired rival paint maker Valspar Corp....

2 min read

Pat McKeough

Growth Stocks

Relying on acquisitions adds risk

MOTOROLA SOLUTIONS INC. $139 (New York symbol MSI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 163.9 million; Market cap: $22.8 billion; Price-to-sales ratio: 3.1; Dividend yield: 1.6%; TSINetwork Rating: Average; www.motorolasolutions.com) makes communications equipment such as radios for police and fire vehicles.

The company recently acquired privately held VaaS International Holdings, Inc....

1 min read

Pat McKeough

Growth Stocks

New products, services keep them on top

These three tech giants continue to adapt to rapid changes in their markets. For example, innovations such as cloud computing (where users access computer software online) have made it easier for software makers Microsoft and Adobe to sell their products as an ongoing subscription service....

4 min read

Pat McKeough

Growth Stocks

Shutdown delays merger deal

QUAKER CHEMICAL CORP. $201 (New York symbol KWR; Income Portfolio, Manufacturing & Industry sector; Shares o/s: 13.3 million; Market cap: $2.7 billion; Price-to-sales ratio: 3.1; Dividend yield: 0.7%; TSINetwork Rating: Average; www.quakerchem.com) agreed to acquire rival Houghton International Inc....

1 min read

Pat McKeough

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

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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.