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

Research keeps these two techs ahead

ADOBE SYSTEMS INC. $196.45 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408-536-6000; www.adobe.com; Shares outstanding: 492.9 million; Market cap: $96.9 billion; No dividends paid) makes software that lets computer users create, edit and share documents in the popular PDF format....

2 min read

Pat McKeough

Growth Stocks

Second chance at ATD

ALIMENTATION COUCHE-TARD $64.76 (Toronto symbol ATD.B: TSINetwork Rating: Average) (1-800-361-2612; www.couchetard.com; Shares outstanding: 567.4 million; Market cap: $36.5 billion; Dividend yield: 0.6%) now has a chance to make another bid to acquire Casey’s General Stores (symbol CASY on Nasdaq)....

1 min read

Pat McKeough

Growth Stocks

Updating ACI Worldwide, Domino’s Pizza, and Yamana Gold

ACI WORLDWIDE $22.77 (Nasdaq symbol ACIW; TSINetwork Rating: Extra Risk) (402-390-7600; www.aciworldwide. com; Shares outstanding: 118.6 million; Market cap: $2.7 billion; No dividends paid) will now expand its relationship with HyperPay, a fast-growing provider of payment services in the Middle East and North Africa.

HyperPay already uses ACI’s UP eCommerce Payments system for its rapidly growing business....

2 min read

Pat McKeough

Growth Stocks

AGT adds a port

AGT FOOD & INGREDIENTS $22.35 (Toronto symbol AGT; TSINetwork Rating: Extra Risk) (604-231-1100; www.agtfoods.com; Shares outstanding: 24.2 million; Market cap: $541.7 million; Dividend yield: 2.7%) has signed an agreement that will give it increased flexibility in shipping its products to Asian markets.

Under the terms of the deal, Fibreco Export Inc....

1 min read

Pat McKeough

Growth Stocks

WestJet & Delta team up

WESTJET AIRLINES $25.34 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1-877- 493-7853; www.westjet.com; Shares outstanding: 123.3 million; Market cap: $2.9 billion; Dividend yield: 2.2%) has expanded its partnership with Delta Airlines (symbol DAL on New York).

Under a more-comprehensive transborder joint venture, the two aim to increase travel choices for customers who fly between the U.S....

1 min read

Pat McKeough

Growth Stocks

Buy Goodyear, hold on to ATN

GOODYEAR TIRE & RUBBER CO. $34.37 (Nasdaq symbol GT; TSINetwork Rating: Average) (330-796-2122; www.goodyear.com; Shares outstanding: 246.3 million; Market cap: $8.5 billion; Dividend yield: 1.6%) is one of the world’s largest tire makers. It has 47 production plants in 21 countries worldwide.

For the three months ended September 30, 2017, the company earned $177 million, excluding one-time items....

2 min read

Pat McKeough

Growth Stocks

Celebrities pay off

WEIGHT WATCHERS INTERNATIONAL $61.84 (New York symbol WTW; TSINetwork Rating: Extra Risk) (212-589-2700; www.weightwatchers.com; Shares outstanding: 64.5 million; Market cap: $4.0 billion; No dividends paid) continues to surge higher as its strategy to leverage the power of high-profile celebrities pays off.

We first recommended the weight-loss firm at $26.61 in the December 2015 issue of Stock Pickers Digest....

1 min read

Pat McKeough

Growth Stocks

Here are our top picks for 2018

We have lots of attractive long-term buys among the stocks we cover, and we’re positive about the long-term outlook for stocks. We feel just as strongly about the need to diversify.

That’s why we’ve chosen three top picks for 2018 from our Stock Pickers Digest recommendations....

3 min read

Pat McKeough

Growth Stocks

Updating Restaurant Brands International Inc., Linamar Corp., and BlackBerry Ltd.

RESTAURANT BRANDS INTERNATIONAL INC. $77 (www.rbi.com) is the world’s third-largest fast-food operator after McDonald’s (No. 1) and Yum Brands (No. 2). It has 16,253 Burger King, 4,680 Tim Hortons (coffee and donuts) and 2,809 Popeyes Louisiana Kitchen (fried chicken) outlets in over 100 countries....

1 min read

Pat McKeough

Growth Stocks

New markets to enrich these food producers

Saputo and Maple Leaf Foods continue to rely on acquisitions to expand. While those moves expand their product lines, continually integrating new operations adds risk.

SAPUTO INC. $43 (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 386.7 million; Market cap: $16.6 billion; Price-to-sales ratio: 1.4; Dividend yield: 1.5%; TSINetwork Rating: Average; www.saputo.com) is Canada’s largest producer of dairy products, including milk, butter and cheese....

2 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.