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

Popeyes adds key market

RESTAURANT BRANDS INTERNATIONAL $59.42 (New York symbol QSR; TSINetwork Rating: Average) (905-845-6511; www.rbi.com; Shares o/s: 478.0 million; Market cap: $28.4 billion; Divd. yield: 3.0%) has 2,975 Popeyes (fried chicken) outlets in over 100 countries.

The company is now launching its first Popeyes restaurants in the Philippines....

1 min read

Pat McKeough

Growth Stocks

These two tap into today’s dining trends

TEXAS ROADHOUSE $71.67 (Nasdaq symbol TXRH; TSINetwork Rating: Extra Risk) (502-426-9984; www.texasroadhouse.com; Shares o/s: 71.5 million; Market cap: $5.2 billion; Divd. yield: 1.4%) is a full-service, casual-dining restaurant chain with 565 locations spread across 49 U.S....

2 min read

Pat McKeough

Growth Stocks

Nissan builds a China EV

NISSAN MOTOR (ADR) $19.41 (Nasdaq symbol NSANY; TSINetwork Rating: Above Average) (310-771-3111; www.nissan-global.com; ADRs outstanding: 2.1 billion; Market cap: $40.4 billion; Dividend yield: 3.0%) is Japan’s second-largest automaker, after Toyota Motor and ahead of Honda.

The company has started manufacturing its first electric sedan, Sylphy Zero Emission, for the Chinese market....

1 min read

Pat McKeough

Growth Stocks

These growth stocks have gains ahead

WESTJET AIRLINES $19.76 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1-877-493-7853; www.westjet.com; Shares outstanding: 113.9 million; Market cap: $2.3 billion; Dividend yield: 2.8%) serves over 100 destinations in North America, Central America, the Caribbean and Europe....

2 min read

Pat McKeough

Growth Stocks

Adobe hits highs

ADOBE SYSTEMS INC. $264.88 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408-536-6000; www.adobe.com; Shares outstanding: 489.7 million; Market cap: $132.6 billion; No dividends paid) makes software to create and share electronic documents as well as digitial media.

The company’s decision a few years ago to switch to selling its programs as ongoing subscriptions instead of one-time purchases is paying off: the stock continues to hit all-time highs on record sales.

In the three months ended August 31, 2018, Adobe’s revenue rose 24.4%, to a record $2.29 billion from $1.84 billion....

1 min read

Pat McKeough

Growth Stocks

Higher defence budgets help CAE

CAE INC. $27 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 267.9 million; Market cap: $7.2 billion; Price-to-sales ratio: 2.5; Dividend yield: 1.5%; TSINetwork Rating: Average; www.cae.com) is the world’s largest maker of flight simulators for commercial airlines and military clients....

1 min read

Pat McKeough

Growth Stocks

Airbus deal helps cut Bombardier’s risk

BOMBARDIER INC. (Toronto symbols BBD.A $4.63 and BBD.B $4.61; Aggressive Growth Portfolio, Manufacturing &Industry sector; Shares outstanding: 2.4 billion; Market cap: $11.1 billion; Price-to-sales ratio: 0.7; Dividend suspended in February 2015; TSINetwork Rating: Speculative; www.bombardier.com) is the world’s third-largest maker of commercial aircraft, after Boeing (No....

1 min read

Pat McKeough

Growth Stocks

Nutrien exceeds a key target

NUTRIEN LTD. $73 (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 619.4 million; Market cap: $45.2 billion; Price-to-sales ratio: 3.4; Dividend yield: 2.9%; 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

Visa’s fast growth justifies its high valuation

VISA INC. $147 (New York symbol V; Conservative Growth Portfolio, Finance sector; Shares outstanding: 2.3 billion; Market cap: $338.1 billion; Price-to-sales ratio: 16.3; Dividend yield: 0.6%; TSINetwork Rating: Above Average; www.visa.com) operates the world’s largest electronic payments network to process credit, debit, prepaid and commercial transactions in over 200 countries....

2 min read

Pat McKeough

Growth Stocks

Big acquisition looks promising

INTERNATIONAL FLAVORS & FRAGRANCES INC. $130 (New York symbol IFF; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 79.0 million; Market cap: $10.3 billion; Price-to-sales ratio: 2.9; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.iff.com) makes over 38,000 compounds that improve the taste of food and the smell of consumer products.

The company has agreed to acquire Frutarom, an Israeli firm that makes over 70,000 flavouring products for over 30,000 customers in 150 countries....

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.