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

Competition may slow them down

RESTAURANT BRANDS INTERNATIONAL $64.46 (New York symbol QSR; TSINetwork Rating: Average) (905-845-6511; www.rbi.com; Shares o/s: 478.0 million; Market cap: $30.8 billion; Divd. yield: 3.1%) is the world’s third-largest fast-food operator after McDonald’s (No....

2 min read

Pat McKeough

Growth Stocks

Adobe adds a 3D leader

ADOBE SYSTEMS INC. $260.23 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408-536-6000; www.adobe.com; Shares outstanding: 487.7 million; Market cap: $126.9 billion; No dividends paid) has acquired Allegorithmic for an undisclosed price.

That privately held firm is based in France and specializes in 3D backgrounds and material creation for video games and video post-production....

1 min read

Pat McKeough

Growth Stocks

Symantec has more upside right now

SYMANTEC CORP. $23.02 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (650-527-8000; www.symantec.com; Shares outstanding: 638.9 million; Market cap: $14.7 billion; Dividend yield: 1.3%) sells computer-security technology, including antivirus and email-filtering software, to businesses and consumers.

Symantec’s revenue in the fiscal 2019 third quarter, ended December 31, 2018, rose only slightly, to $1.211 billion from $1.209 billion a year earlier....

2 min read

Pat McKeough

Growth Stocks

Growth at a price

SHOPIFY INC. $227.53 (Toronto symbol SHOP; TSINetwork Rating: Extra Risk) (613-241-2828; www.shopify.ca; Shares outstanding: 110.6 million; Market cap: $25.1 billion; No dividend) offers merchants of all sizes Internet-based software to design, set up and manage stores across multiple sales channels.

In the three months ended December 31, 2018, and excluding one-time items, Shopify made $27.9 million, or $0.26 a share....

1 min read

Pat McKeough

Growth Stocks

Tim Hortons leads its sales growth

RESTAURANT BRANDS INTERNATIONAL INC. $83 (Toronto symbol QSR; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 467.6 million; Market cap: $38.8 billion; Price-to-sales ratio: 7.4; Dividend yield: 3.2%; TSINetwork Rating: Average; www.rbi.com) is the world’s third-largest fast-food operator after McDonald’s (No....

1 min read

Pat McKeough

Growth Stocks

Uncertainty weighs on SNC

SNC-LAVALIN GROUP INC. $38 (Toronto symbol SNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 175.6 million; Market cap: $6.7 billion; Price-to-sales ratio: 0.6; Dividend yield: 3.0%; TSINetwork Rating: Average; www.snclavalin.com) is down nearly 40% from its recent peak of $62 in June 2018.

That’s due to several factors, including unexpected costs related to a contract for its mining business....

1 min read

Pat McKeough

Growth Stocks

Updating State Street Corp., MTS Systems Corp., and Teradata Corp.

STATE STREET CORP. $71 (www.statestreet.com) sells accounting and administrative services to operators of mutual funds and pension plans. The company now plans to cut 6% of its workforce, which should save it $350 million in 2019. If you exclude costs related to that plan and other unusual items, State Street’s earnings rose 14.1%, to $2.7 billion in 2018 from $2.4 billion in 2017....

1 min read

Pat McKeough

Growth Stocks

Updating Idexx Laboratories Inc., Philips Electronics N.V. ADRs, and Diebold Nixdorf Inc.

IDEXX LABORATORIES INC. $202 (Nasdaq symbol IDXX; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 86.2 million; Market cap: $17.4 billion; Price-to-sales ratio: 8.0; No dividends paid; TSINetwork Rating: Average; www.idexx.com) makes equipment that veterinarians use to detect diseases in pets and farm animals.

Thanks to strong demand for that diagnostic equipment and related supplies, Idexx’s revenue in the quarter ended September 30, 2018, rose 10.9%, to $545.4 million from $492.0 million a year earlier....

2 min read

Pat McKeough

Growth Stocks

Software shift cuts NCR’s risk

NCR CORP. $26 (New York symbol NCR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 118.2 million; Market cap: $3.1 billion; Price-to-sales ratio: 0.5; No dividends paid; TSINetwork Rating: Average; www.ncr.com) makes automated teller machines (ATMs), cash registers, self-serve checkouts and kiosks for theatres and arenas.

NCR recently paid $184 million for JetPay Corp....

1 min read

Pat McKeough

Growth Stocks

Cost-cutting is set to boost their earnings

These two makers of medical devices face several challenges in 2019. They include higher costs for certain raw materials and tariffs on goods they sell in China. However, their current cost-savings plans should continue to expand their earnings.

BAXTER INTERNATIONAL INC....

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.