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

Shift to plastic over cash fuels Visa

VISA INC. $132 (New York symbol V; Conservative Growth Portfolio, Finance sector; Shares o/s: 2.3 billion; Market cap: $303.6 billion; P/S ratio: 15.3; Divd .yield: 0.8%; TSINetwork Rating: Above Average; www.visa.com) processed 11.7% more credit- and debit-card transactions in its fiscal 2018 second quarter, ended March 31, 2018, than a year earlier.

As a result, its revenue in the quarter gained 13.3%, to $5.1 billion from $4.5 billion....

1 min read

Pat McKeough

Growth Stocks

New products, tax cuts boost Idexx

IDEXX LABORATORIES INC. $202 (Nasdaq symbol IDXX; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 86.9 million; Market cap: $17.6 billion; Price-to-sales ratio: 7.2; No dividends paid; TSINetwork Rating: Average; www.idexx.com) makes equipment that veterinarians use to detect diseases in pets.

Thanks to strong demand for its diagnostic equipment and related supplies, Idexx’s revenue in the first quarter of 2018 rose 16.4%, to $537.7 million from $462.0 million a year earlier....

1 min read

Pat McKeough

Growth Stocks

Online subscribers spur these software stocks

These three leading software makers continue to profit from their growing number of subscription sales over the Internet. That has steadied their income from product upgrades.

We like the outlook for all three, but recommend just two of them for new buying.

MICROSOFT CORP....

4 min read

Pat McKeough

Growth Stocks

PayPal gets into stores

PAYPAL HOLDINGS INC. $81 (Nasdaq symbol PYPL; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 1.2 billion; Market cap: $97.2 billion; Price-to-sales ratio: 7.0; No dividends paid; TSINetwork Rating: Above Average; www.paypal.com) processes online transactions, including purchases made through the auction websites of its former parent company eBay.

The company is now buying iZettle AB....

1 min read

Pat McKeough

Growth Stocks

This new buy is primed for growth

Starbucks’s decision to begin paying a dividend in 2010 only supported our high opinion of the company. However, we continued to resist recommending it to our readers mainly because the stock was trading at an expensive 40 or more times its earnings.

With a current p/e of 22.8, the company’s earnings have done a good job of catching up to its share price....

4 min read

Pat McKeough

Growth Stocks

Hold on to these two tech leaders

ACI WORLDWIDE $23.26 (Nasdaq symbol ACIW; TSINetwork Rating: Extra Risk) (402-390-7600; www.aciworldwide.com; Shares outstanding: 116.4 million; Market cap: $2.7 billion; No dividends paid) makes software for processing transactions by credit cards, debit cards, automated teller machines, point-of-sale terminals and interbank systems....

2 min read

Pat McKeough

Growth Stocks

We still like Symantec

SYMANTEC CORP. $22.35 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (650-527-8000; www.symantec.com; Shares outstanding: 621.5 million; Market cap: $13.9 billion; Dividend yield: 1.3%) dropped to as low as $18.85 recently after the company unexpectedly said it was looking into some financial issues....

1 min read

Pat McKeough

Growth Stocks

Updating Dream Office REIT, Amazon.com and FirstService Corp.

DREAM OFFICE REIT $24.55 (Toronto symbol D.UN; TSINetwork Rating: Extra Risk) (416-365-3535; www.dream.ca/office; Units outstanding: 70.1 million; Market cap: $1.9 billion; Dividend yield: 4.1%) owns and manages 42 office and retail properties in major Canadian cities, comprising 8.5 million square feet....

2 min read

Pat McKeough

Growth Stocks

Chipotle is on the rise

CHIPOTLE MEXICAN GRILL $444.67 (New York symbol CMG; TSINetwork Rating: Extra Risk) (303-595-4000; www.chipotle.com; Shares o/s: 27.8 million; Market cap: $12.4 billion; No dividends paid) is now up 80% from its February 2018 low of $247.52. The gains came from improved financial results, but also from optimism about the company’s new CEO

In the quarter ended March 31, 2018, sales rose 7.4%, to $1.15 billion from $1.07 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

IoT drives Sierra Wireless

SIERRA WIRELESS $23.34 (Toronto symbol SW; TSINetwork Rating: Extra Risk) (604-231-1100; www.sierrawireless.com; Shares outstanding: 36.0 million; Market cap: $839.8 million; No dividend. paid) makes digital components that connect products to the Internet....

1 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.