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

Adobe courts iPad users

ADOBE SYSTEMS INC. $255.54 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408-536-6000; www.adobe.com; Shares outstanding: 489.7 million; Market cap: $123.2 billion; No dividends paid) is reportedly planning to launch a full version of its Photoshop app for Apple Inc.’s iPad.

In 2012, Adobe shifted all of its apps to the cloud....

1 min read

Pat McKeough

Growth Stocks

Keep holding these software leaders

FAIR ISAAC CORP. $222.02 (New York symbol FICO; TSINetwork Rating: Average) (415-472-2211; www.fairisaac.com; Shares outstanding: 29.1 million; Market cap: $6.4 billion; No dividends paid) makes FICO Scores. It’s the dominant software program used by U.S....

2 min read

Pat McKeough

Growth Stocks

Here’s our Pick of the Month

SIERRA WIRELESS $25.20 (Toronto symbol SW; TSINetwork Rating: Extra Risk) (604-231-1100; www.sierrawireless.com; Shares outstanding: 36.0 million; Market cap: $915.0 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....

1 min read

Pat McKeough

Growth Stocks

Narrower focus will spur RioCan higher

RIOCAN REAL ESTATE INVESTMENT TRUST $25 (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units o/s: 312.7 million; Market cap: $7.8 billion; Price-to-sales ratio: 6.5; Dividend yield: 5.8%; TSINetwork Rating: Average; www.riocan.com) owns all or part of 267 shopping centres and other rental properties in Canada....

2 min read

Pat McKeough

Growth Stocks

Updating BlackBerry Ltd., Canadian Imperial Bank of Commerce, and Torstar Corp.

BLACKBERRY LTD. $13 (Toronto symbol BB; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 537.1 million; Market cap: $7.0 billion; Price-to-sales ratio: 7.7; No dividends paid; TSINetwork Rating: Speculative; www.blackberry.com) is in a strong position to profit as more businesses increase their spending on cybersecurity.

For example, the company recently introduced a new feature to protect corporate data from ransomware threats....

2 min read

Pat McKeough

Growth Stocks

All-day breakfast should help Tims

RESTAURANT BRANDS INTERNATIONAL INC. $82 (Toronto symbol QSR; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 467.6 million; Market cap: $38.3 billion; Price-to-sales ratio: 7.9; Dividend yield: 2.9%; TSINetwork Rating: Average; www.rbi.com) operates 17,022 Burger King, 4,794 Tim Hortons (coffee and donuts) and 2,975 Popeyes Louisiana Kitchen (fried chicken) outlets in over 100 countries.

Tim Hortons recently began offering an all-day breakfast menu at its outlets in Canada....

1 min read

Pat McKeough

Growth Stocks

CAE boosts value for investors

CAE INC. $26 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 267.9 million; Market cap: $7.0 billion; Price-to-sales ratio: 2.4; 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

Updating MTS Systems Corp., Yum China Holdings Inc., and Symantec Corp.

MTS SYSTEMS CORP. $53 (www.mts.com) makes equipment and software that manufacturers use to test the behaviour of materials, machines and structures. It also makes sensors for industrial equipment. In the quarter ended March 31, 2018, the company’s revenue fell 1.1%, to $191.3 million from $193.4 million a year earlier....

1 min read

Pat McKeough

Growth Stocks

State Street buys data analytics firm

STATE STREET CORP. $87 (New York symbol STT; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 365.4 million; Market cap: $31.8 billion; Price-to-sales ratio: 2.8; Dividend yield: 2.2%; TSINetwork Rating: Average; www.statestreet.com) sells accounting and administrative services to operators of mutual funds and pension plans....

1 min read

Pat McKeough

Growth Stocks

High p/e adds to McCormick’s risk

MCCORMICK & CO. INC. $118 (New York symbol MKC; Income Portfolio, Consumer sector; Shares o/s: 131.3 million; Market cap: $15.5 billion; Price-to-sales ratio: 3.0; Divd yield: 1.7%; TSINetwork Rating: Average; www.mccormick.com) makes spices, seasonings and flavours.

In August 2017, the company acquired several condiment brands from Reckitt Benckiser Group plc....

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.