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 Shawcor Ltd., Torstar Corp., and Transcontinental Inc.

SHAWCOR LTD. $18 (www.shawcor.com) is a leading producer of sealants and coatings to keep oil and gas pipelines from rusting. It also makes electrical wire and other industrial products. The stock is down 30% in the past six months, which reflects investors fear that lower crude oil prices could hurt the construction of new pipelines and impact ShawCor’s revenue....

1 min read

Pat McKeough

Growth Stocks

Metro’s big acquisition cuts its risk

METRO INC. $48 (Toronto symbol MRU; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 255.7 million; Market cap: $12.3 billion; Price-to-sales ratio: 0.8; Dividend yield: 1.5%; TSINetwork Rating: Average; www.metro.ca) operates 600 grocery stores and 650 drugstores, in Quebec, Ontario and New Brunswick.

In May 2018, Metro acquired Jean Coutu Group (PJC) Inc....

2 min read

Pat McKeough

Growth Stocks

Updating Saputo Inc., Suncor Energy Inc., and Restaurant Brands International Inc.

SAPUTO INC. $40 (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 388.7 million; Market cap: $15.5 billion; Price-to-sales ratio: 1.2; Dividend yield: 1.7%; TSINetwork Rating: Average; www.saputo.com) is Canada’s largest producer of dairy products, including milk, butter and cheese....

2 min read

Pat McKeough

Growth Stocks

New businesses enhance their prospects

The shares of Finning and Toromont have moved down lately in response to lower commodity prices. However, recent acquisitions put both companies in a strong position to expand their earnings when commodity prices rebound.

FINNING INTERNATIONAL INC....

2 min read

Pat McKeough

Growth Stocks

CAE’s strong reputation pays off

CAE INC. $26 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 266.3 million; Market cap: $6.9 billion; Price-to-sales ratio: 2.3; Dividend yield: 1.5%; TSINetwork Rating: Average; www.cae.com) continues to win pilot-training contracts.

For example, it recently won a deal to train pilots for U.K.-based airline easyJet....

1 min read

Pat McKeough

Growth Stocks

Cost savings spur dividend hike

NUTRIEN LTD. $65 (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 612.7 million; Market cap: $39.8 billion; Price-to-sales ratio: 2.5; Dividend yield: 2.6%; TSINetwork Rating: Average; www.nutrien.com) took its current form on January 1, 2018, through the merger of Agrium (old symbol AGU) and rival fertilizer producer Potash Corp....

1 min read

Pat McKeough

Growth Stocks

Updating International Flavors & Fragrances Inc., Visa Inc., and Boeing Co.

INTERNATIONAL FLAVORS & FRAGRANCES INC. $131 (www.iff.com) recently completed its acquisition of Frutarom, an Israeli firm that makes over 70,000 flavouring products for over 30,000 customers in 150 countries. About 75% of those products come from natural sources....

1 min read

Pat McKeough

Growth Stocks

Slower housing market is a risk

SHERWIN-WILLIAMS CO. $380 (New York symbol SHW; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 93.1 million; Market cap: $35.4 billion; Price-to-sales ratio: 2.0; Dividend yield: 0.9%; TSINetwork Rating: Above Average; www.sherwin-williams.com) acquired rival paint maker Valspar Corp....

1 min read

Pat McKeough

Growth Stocks

Updating Nordstrom Inc., PepsiCo Inc., and Newmont Mining Corp.

NORDSTROM INC. $47 (New York symbol JWN; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 167.3 million; Market cap: $7.9 billion; Price-to-sales ratio: 0.5; Dividend yield: 3.0%; TSINetwork Rating: Average; www.nordstrom.com) owns and operates 372 stores across the U.S....

2 min read

Pat McKeough

Growth Stocks

Their latest acquisitions continue to pay off

Each of these two firms recently completed a big acquisition. So far, those new businesses fit nicely with their existing operations and have expanded their overall profit.

FEDEX CORP. $163 (New York symbol FDX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 263.5 million; Market cap: $43.0 billion; Price-to-sales ratio: 0.6; Dividend yield: 1.4%; TSINetwork Rating: Average; www.fedex.com) delivers packages and documents in the U.S....

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.