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

Shopify goes to Europe

SHOPIFY $181.01 (Toronto symbol SHOP; TSINetwork Rating: Extra Risk) (613-241-2828; www.shopify.ca; Shares outstanding: 106.4 million; Market cap: $18.5 billion; No dividends paid) has bought Swedish e-commerce start-up company Tictail....

1 min read

Pat McKeough

Growth Stocks

Sierra is the better buy right now

SIERRA WIRELESS $18.19 (Toronto symbol SW; TSINetwork Rating: Extra Risk) (604-231-1100; www.sierrawireless.com; Shares outstanding: 36.1 million; Market cap: $645.7 million; No dividends paid) makes digital components that connect products, including smart electricity meters, automobiles, fleet and transit vehicles, and home security systems, to the Internet....

2 min read

Pat McKeough

Growth Stocks

WestJet set to soar

WESTJET AIRLINES $17.61 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1-877-493-7853; www.westjet.com; Shares o/s: 113.9 million; Market cap: $2.0 billion; Div. yield: 3.2%) continues to report higher revenue on strong demand for its flights....

1 min read

Pat McKeough

Growth Stocks

Here’s our Pick of the Month

TEXAS ROADHOUSE $62.07 (Nasdaq symbol TXRH; TSINetwork Rating: Extra Risk) (502-426-9984; www.texasroadhouse.com; Shares outstanding: 71.6 million; Market cap: $4.4 billion; Dividend yield: 1.6%) is a full-service, casual-dining restaurant chain with 570 locations spread across 49 U.S....

1 min read

Pat McKeough

Growth Stocks

Maple Leaf gets cash for new plant

MAPLE LEAF FOODS INC. $28 (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 124.4 million; Market cap: $3.5 billion; Price-to-sales ratio: 1.0; Dividend yield: 1.9%; TSINetwork Rating: Average; www.mapleleaffoods.com) sells fresh and prepared meats under the Maple Leaf and Schneider brands.

The company now plans to build a new poultry-processing plant in London, Ontario....

1 min read

Pat McKeough

Growth Stocks

Keep holding these three aggressive stocks

Prospects for all three of these companies from our Aggressive Growth Portfolio continue to improve, either through acquisitions or cost cuts. Still, each stock fell sharply in 2018 and will likely remain depressed in 2019.

Instead of selling, however, we continue to recommend investors hold their shares....

6 min read

Pat McKeough

Growth Stocks

Updating 3M Company, Lamb Weston Holdings Inc., and McCormick & Co. Inc.

3M COMPANY $204 (www.3m.com) makes over 60,000 consumer and industrial goods, including Post-It notes, Scotch tape, Scotch-Brite cleaning products, Scotchguard fabric protection and Thinsulate insulation. In the past few years, the company has narrowed its focus to more-promising markets, including healthcare, safety and industrial products....

1 min read

Pat McKeough

Growth Stocks

Big acquisition should send Quaker higher

QUAKER CHEMICAL CORP. $206 (New York symbol KWR; Income Portfolio, Manufacturing & Industry sector; Shares o/s: 13.3 million; Market cap: $2.7 billion; Price-to-sales ratio: 3.2; Dividend yield: 0.7%; TSINetwork Rating: Average; www.quakerchem.com) started up in 1918 and currently operates 35 plants in 21 countries....

2 min read

Pat McKeough

Growth Stocks

Good weather is bad news for Briggs

BRIGGS & STRATTON CORP. $16 (New York symbol BGG; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 42.3 million; Market cap: $676.8 million; Price-to-sales ratio: 0.4; Dividend yield: 3.5%; TSINetwork Rating: Above Average; www....

1 min read

Pat McKeough

Growth Stocks

Updating Alliant Energy Corp., Symantec Corp., and Stanley Black & Decker Inc.

ALLIANT ENERGY CORP. $45 (New York symbol LNT; Income Portfolio, Utilities sector; Shares o/s: 231.5 million; Market cap: $10.4 billion; Price-to-sales ratio: 3.0; Dividend yield: 3.0%; TSINetwork Rating: Average; www.alliantenergy.com) sells power and natural gas to 1.4 million clients in Wisconsin, Iowa and Minnesota.

Alliant earned $199.9 million in the third quarter of 2018....

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.