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

Home Capital launches buyback plan

HOME CAPITAL GROUP INC. $17 (Toronto symbol HCG; Aggressive Growth Portfolio, Finance sector; Shares o/s: 80.3 million; Market cap: $1.4 billion; Price-to-sales ratio: 3.5; Dividend suspended in May 2017; TSINetwork Rating: Speculative; www.homecapital.com) plans to buy back up to $300 million of its shares through a Dutch auction.

Under the offer, shareholders who want to sell their Home Capital shares must offer them for between $16.50 and $18.50 before December 18, 2018....

1 min read

Pat McKeough

Growth Stocks

Two aggressive stocks—1 buy & 1 hold

SHAWCOR LTD. $22 (Toronto symbol SCL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 70.1 million; Market cap: $1.5 billion; Price-to- sales ratio: 1.0; Dividend yield: 2.7%; TSINetwork Rating: Average; www.shawcor.com) is a leading producer of sealants and coatings to keep oil and gas pipelines from rusting....

2 min read

Pat McKeough

Growth Stocks

Deal to take sales even higher

CAE INC. $27 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 266.3 million; Market cap: $7.2 billion; Price-to-sales ratio: 2.4; Dividend yield: 1.5%; TSINetwork Rating: Average; www.cae.com) is the world’s largest maker of flight simulators for commercial airlines and military clients....

1 min read

Pat McKeough

Growth Stocks

Updating State Street Corp., Fair Isaac Corp., and Agilent Technologies

STATE STREET CORP. $67 (www.statestreet.com) sells accounting and administrative services to operators of mutual funds and pension plans. It also offers banking services. The company recently completed its purchase of Charles River Systems Inc....

1 min read

Pat McKeough

Growth Stocks

Chipmaker offers growth and rising income

TEXAS INSTRUMENTS INC. $92 (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 972.2 million; Market cap: $89.4 billion; Price-to-sales ratio: 5.7; Dividend yield: 3.3%; TSINetwork Rating: Average; www.ti.com) is a leading maker of analog chips....

2 min read

Pat McKeough

Growth Stocks

Updating Gannett Co. Inc., Kraft Heinz Co., and Diebold Nixdorf Inc.

GANNETT CO., INC. $9.45 (New York symbol GCI; Conservative Growth Portfolio, Consumer sector: Shares outstanding: 112.8 million; Market cap: $1.1 billion; Price-to-sales ratio: 0.4; Dividend yield: 6.8%; TSINetwork Rating: Average; www.gannett.com) publishes over 100 U.S....

2 min read

Pat McKeough

Growth Stocks

New ethanol rules a plus for Archer

ARCHER DANIELS MIDLAND CO. $48 (New York symbol ADM; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 559.7 million; Market cap: $26.9 billion; Price-to-sales ratio: 0.4; Divd. yield: 2.8%; 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....

1 min read

Pat McKeough

Growth Stocks

Baxter’s restructuring lifts forecast

BAXTER INTERNATIONAL INC. $67 (New York symbol BAX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 534.3 million; Market cap: $35.8 billion; Price-to-sales ratio: 3.3; Dividend yield: 1.1%; TSINetwork Rating: Average; www.baxter.com) makes a variety of medical devices, including intravenous pumps and kidney-dialysis equipment.

The company gets about half of its revenue from outside of the U.S....

1 min read

Pat McKeough

Growth Stocks

Adobe makes a big buy

ADOBE SYSTEMS INC. $258.91 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408-536-6000; www.adobe.com; Shares o/s: 488.1 million; Market cap: $126.4 billion; No dividends paid) has agreed to buy marketing-automation firm Marketo for $4.75 billion.

Marketo helps brands track their customers’ actions online, from the time they get an email to the time they purchase a product....

1 min read

Pat McKeough

Growth Stocks

Updating Chipotle Mexican Grill, Amazon.com, and Shopify

CHIPOTLE MEXICAN GRILL $429.85 (New York symbol CMG; TSINetwork Rating: Extra Risk) (303-595-4000; www.chipotle.com; Shares outstanding: 27.8 million; Market cap: $12.0 billion; No dividends paid) has announced a pilot loyalty program. The test will start in three markets: Phoenix, Kansas City, and Columbus, Ohio.

Customers who order through Chipotle’s app or on Chipotle.com will earn 15 points for every $1 they spend....

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.