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

ADM cancels a big acquisition

ARCHER DANIELS MIDLAND CO. $46 (New York symbol ADM; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 558.9 million; Market cap: $25.7 billion; Price-to-sales ratio: 0.4; Dividend yield: 2.9%; TSINetwork Rating: Above Average; www.adm.com) processes corn, wheat, soybeans, flaxseed, peanuts and other crops to make a variety of food ingredients such as flour, oils and sweeteners....

1 min read

Pat McKeough

Growth Stocks

Key transition weighs on Teradata

TERADATA CORP. $40 (New York symbol TDC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 120.9 million; Market cap: $4.8 billion; Price-to-sales ratio: 2.2; No dividends paid; TSINetwork Rating: Average; www.teradata.com) makes computers and software to capture and store large amounts of data for individual businesses—its clients....

1 min read

Pat McKeough

Growth Stocks

Unique factors set these industrials apart

These three firms are well-established leaders in their niche markets. That helps cut the risk of operating in highly cyclical industries. Moreover, their recent acquisitions improve their long-term prospects. Still, only one of the three stocks is currently a buy.

QUAKER CHEMICAL CORP....

4 min read

Pat McKeough

Growth Stocks

Symantec teams up with NTT

SYMANTEC CORP. $28 (Nasdaq symbol SYMC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 621.5 million; Market cap: $17.4 billion; Price-to-sales ratio: 3.7; Dividend yield: 1.1%; TSINetwork Rating: Average; www.symantec.com) sells computer-security technology, including antivirus and email-filtering software, to businesses and consumers.

Symantec has formed a partnership with the security division of NTT Group of Japan (Nippon Telegraph and Telephone Corporation), one of the largest telecommunications companies in the world.

The venture will pair NTT Security’s threat detection and advanced analytics capabilities with Symantec’s Cloud-Delivered Web Security Services....

1 min read

Pat McKeough

Growth Stocks

Alphabet has long-term gains ahead

Alphabet’s shares have declined 4% since the start of 2018. That’s partly due to fears the recent Facebook data scandal will prompt governments to bring in new regulations on how Internet companies gather and use customer information. That could hurt the ability of the company’s Google division to sell targeted ads.

However, Google’s targeted-ad features restrict themselves to tracking a user’s search history, rather than the user’s personal data....

4 min read

Pat McKeough

Growth Stocks

A new buy for Stock Pickers Digest

TEXAS ROADHOUSE $62.76 (Nasdaq symbol TXRH; TSINetwork Rating: Extra Risk) (502-426-9984; www.texasroadhouse.com; Shares o/s: 71.4 million; Market cap: $4.4 billion; Divd. yield: 1.6%) is a full-service, casual-dining restaurant chain with 549 locations spread across 49 U.S....

2 min read

Pat McKeough

Growth Stocks

Tims due for a refresh

RESTAURANT BRANDS INTERNATIONAL $55.06 (New York symbol QSR; TSINetwork Rating: Average) (905-845-6511; www.rbi.com; Shares o/s: 478.0 million; Market cap: $26.3 billion; Divd. yield: 3.13) plans to spend $700 million over the next four years to refresh and upgrade almost all its Canadian locations within four years....

1 min read

Pat McKeough

Growth Stocks

Lentil prices hurt AGT

AGT FOOD & INGREDIENTS $16.51 (Toronto symbol AGT; TSINetwork Rating: Extra Risk) (604-231-1100; www.agtfoods.com; Shares outstanding: 24.2 million; Market cap: $400.2 million; Dividend yield: 3.6%) continues to feel the negative impact of low worldwide prices for lentils....

1 min read

Pat McKeough

Growth Stocks

Deal to spur R&D

SYMANTEC CORP. $27.91 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (650-527-8000; www.symantec.com; Shares outstanding: 620.0 million; Market cap: $17.3 billion; Dividend yield: 1.1%) sells computer-security technology, including antivirus and email-filtering software, to businesses and consumers.

Symantec has now formed a partnership with NTT Security....

1 min read

Pat McKeough

Growth Stocks

Updating Torstar Corp., CGI Group Inc. and Shawcor Ltd.

TORSTAR CORP. $1.80 (www.torstar.com) has re-branded its Metro free commuter newspapers in Vancouver, Calgary, Edmonton, Toronto and Halifax as StarMetro. The company has also expanded the websites of those five publications....

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.