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

These two gain from a rising U.S. economy

Cintas and Tennant provide a variety of niche services and products, mainly to businesses. With the improved economy, clients should spend more on their offerings. We prefer Cintas for new buying, but like the outlook for both.

CINTAS CORP. $209 (Nasdaq symbol CTAS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 106.7 million; Market cap: $22.3 billion; Price-to-sales ratio: 3.5; Dividend yield: 0.8%; TSINetwork Rating: Average; www.cintas.com) designs, manufactures and sells uniforms to one million businesses, mainly in North America....

2 min read

Pat McKeough

Growth Stocks

Profit jumps despite EU fine

ALPHABET INC. (Nasdaq symbols GOOG $1,264 [class C: non-voting] and GOOGL $1,276 [class A: one vote per share]; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 694.5 million; Market cap: $877.8 billion; Price-to-sales ratio: 7.4; No dividends paid; TSINetwork Rating: Above Average; www.abc.xyz) is the parent company of Google’s Internet search business (still called Google) and other operations (called “Other Bets”)....

1 min read

Pat McKeough

Growth Stocks

Big gains, but still pricey

ADOBE SYSTEMS INC. $259.78 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408-536-6000; www.adobe.com; Shares outstanding: 489.7 million; Market cap: $127.2 billion; No dividends paid) makes software that lets computer users create, edit and share documents in the popular PDF format.

The company continues to benefit from strong demand for its subscription services, particularly for its Creative Cloud package of photo-editing and desktop-publishing programs.

In the three months ended June 1, 2018, Adobe’s earnings jumped 62.7%, to $1.66 a share from $1.02 a year earlier....

1 min read

Pat McKeough

Growth Stocks

Updating Domino’s Pizza, Nissan Motor (ADR) and ACI Worldwide

DOMINO’S PIZZA $283.68 (New York symbol DPZ; TSINetwork Rating: Average) (734-930-3008; www.dominos.com; Shares outstanding: 42.3 million; Market cap: $12.0 billion; Dividend yield: 0.8%) is the world’s largest chain of pizza stores that offer takeout and delivery....

2 min read

Pat McKeough

Growth Stocks

Tims targets big market

RESTAURANT BRANDS INTERNATIONAL $63.78 (New York symbol QSR; TSINetwork Rating: Average) (905-845-6511; www.rbi.com; Shares outstanding: 478.0 million; Market cap: $30.5 billion; Dividend yield: 2.8%) plans to form a joint venture partnership between Tim Hortons and Cartesian Capital Group to open 1,500 Tim Hortons restaurants in China over the next decade.

In 2012, Cartesian Capital partnered with Restaurant Brands International and the Kurdoglu family to develop the Burger King brand in China.

The joint venture aims to capitalize on a developing coffee culture among urban dwellers in China, especially young people and office workers....

1 min read

Pat McKeough

Growth Stocks

Hold onto these Canadian retailers

BMTC GROUP $13.77 (Toronto symbol GBT; TSINetwork Rating: Extra Risk) (514-648-5757; No website; Shares outstanding: 35.2 million; Market cap: $482.6 million; Dividend yield: 2.0%) has 36 outlets and is one of Quebec’s biggest retailers of furniture, electronics and appliances....

2 min read

Pat McKeough

Growth Stocks

SHOP taps B.C. pot

SHOPIFY INC. $224.14 (Toronto symbol SHOP; TSINetwork Rating: Extra Risk) (613-241-2828; www.shopify.ca; Shares outstanding: 99.9 million; Market cap: $23.8 billion; No dividend) has now been selected by British Columbia to provide an e-commerce platform for the online sale of non-medical cannabis.

The B.C....

1 min read

Pat McKeough

Growth Stocks

Here’s our Pick of the Month

ALIMENTATION COUCHE-TARD $61.07 (Toronto symbol ATD.B: TSINetwork Rating: Average) (1-800-361-2612; www.couchetard.com; Shares outstanding: 567.4 million; Market cap: $34.6 billion; Dividend yield: 0.7%) operates 12,740 convenience stores throughout North America and Europe.

In the three months ended April 29, 2018, sales jumped 41.5%, to $13.61 billion from $9.62 billion a year earlier (all figures except share price in U.S....

1 min read

Pat McKeough

Growth Stocks

Updating Torstar Corp., Precision Drilling Corp., and Bombardier Inc.

TORSTAR CORP. $1.20 (www.torstar.com) has agreed to merge its eight employee registered defined-benefit pension plans with the larger Colleges of Applied Arts & Technology Pension Plan. That plan covers 42 participating employers, and has $11 billion in assets under administration....

1 min read

Pat McKeough

Growth Stocks

Updating Saputo Inc., IGM Financial Inc., and CGI Group Inc.

SAPUTO INC. $45 (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 387.4 million; Market cap: $17.4 billion; Price-to-sales ratio: 1.5; Dividend yield: 1.4%; TSINetwork Rating: Average; www.saputo.com) has completed its deal to acquire Shepherd Gourmet Dairy (Ontario) Inc.

Based in St....

1 min read

Pat McKeough

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Investors Association of Canada
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Subscriber since 1996. Inner Circle Member Since 2006
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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.