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

Here’s our Pick of the Month

WEIGHT WATCHERS INTERNATIONAL $94.17 (New York symbol WTW; TSINetwork Rating: Extra Risk) (212-589-2700; www.weightwatchers.com; Shares outstanding: 66.3 million; Market cap: $4.0 billion; No dividends paid) offers weight-loss services in 23 countries....

1 min read

Pat McKeough

Growth Stocks

CAE continues to profit from niche markets

CAE INC. $28 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 267.6 million; Market cap: $7.5 billion; Price-to-sales ratio: 2.7; Dividend yield: 1.3%; TSINetwork Rating: Average; www.cae.com) is the world’s largest maker of flight simulators for commercial airlines and military clients....

2 min read

Pat McKeough

Growth Stocks

Focus on software fuels BlackBerry

BLACKBERRY LTD. $16 (Toronto symbol BB; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 537.1 million; Market cap: $8.6 billion; Price-to-sales ratio: 9.4; No dividends paid; TSINetwork Rating: Speculative; www.blackberry.com) quit developing smartphones in 2016 as part of a plan to focus on its more promising communications software....

1 min read

Pat McKeough

Growth Stocks

Trade war threat weighs on Linamar

LINAMAR CORP. $66 (Toronto symbol LNR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 65.4 million; Market cap: $4.3 billion; Price-to-sales ratio: 0.7; Dividend yield: 0.6%; TSINetwork Rating: Average; www.linamar.com) has moved down lately, mainly in response to the Trump administration’s decision to impose new tariffs on imports of steel and aluminum.

That could increase the cost of new cars, and hurt demand for Linamar’s automotive parts....

1 min read

Pat McKeough

Growth Stocks

Both these acquisitions look promising

Each of these two firms has recently completed a big purchase. While we’re always wary of a company’s use of acquisitions to spur growth, we feel the new operations of the two companies will pay off. Moreover, Metro’s purchase of drugstore chain Jean Coutu should actually cuts its risk.

RESTAURANT BRANDS INTERNATIONAL INC....

2 min read

Pat McKeough

Growth Stocks

RioCan poised for big gain from sale

RIOCAN REAL ESTATE INVESTMENT TRUST $24 (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 317.4 million; Market cap: $7.6 billion; Price-to-sales ratio: 6.2; Dividend yield: 6.0%; TSINetwork Rating: Average; www.riocan.com) and department store operator Hudson’s Bay Co....

1 min read

Pat McKeough

Growth Stocks

Home Capital secures new financing

HOME CAPITAL GROUP INC. $14 (Toronto symbol HCG; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 80.3 million; Market cap: $1.1 billion; Price-to-sales ratio: 4.8; Dividend suspended in May 2017; TSINetwork Rating: Speculative; www.homecapital.com) is a mortgage lender serving borrowers who fail to meet the stricter standards of Canada’s big banks and other larger, traditional lenders.

During Home Capital’s liquidity crisis in 2017, billionaire investor Warren Buffett’s Berkshire Hathaway Inc....

1 min read

Pat McKeough

Growth Stocks

Nutrien cashing in on Lithium

NUTRIEN LTD. $69 (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 634.2 million; Market cap: $43.8 billion; Price-to-sales ratio: 6.7; Dividend yield: 3.0%; 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

Pembina and Innergex are both buys

PEMBINA PIPELINE $45.01 (Toronto symbol PPL; Shares outstanding: 502.4 million; Market cap: $22.6 billion; TSINetwork Rating: Average; Dividend yield: 3.9%; www.pembina.com) owns pipelines that carry almost all of B.C.’s oil and half of Alberta’s conventional oil....

2 min read

Pat McKeough

Growth Stocks

Acquisitions broaden Cisco’s expertise

CISCO SYSTEMS INC. $44 (Nasdaq symbol CSCO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.8 billion; Market cap: $211.2 billion; Price-to-sales ratio: 4.4; Dividend yield 3.0%; TSINetwork Rating: Average; www.cisco.com) is a leading maker of hardware and software that links and manages computer networks....

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.