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

Home Capital faces possible lawsuit

HOME CAPITAL GROUP INC. $17 (Toronto symbol HCG; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 80.3 million; Market cap: $1.4 billion; Price-to-sales ratio: 3.8; Dividend suspended in May 2017; TSINetwork Rating: Speculative; www.homecapital.com) is a mortgage lender serving borrowers who fail to meet the stricter standards of Canada’s big banks and other larger, traditional lenders.

In June 2017, the company agreed to settle charges by the Ontario Securities Commission (OSC) that it, along with key executives, failed to disclose concerns that some independent mortgage brokers falsified their clients’ annual incomes on loan applications.

As part of the deal with the OSC, Home Capital also agreed to settle a class-action lawsuit for $29.5 million....

1 min read

Pat McKeough

Growth Stocks

Military sales lift CAE

CAE INC. $22 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 268.3 million; Market cap: $5.9 billion; Price-to-sales ratio: 2.2; Dividend yield: 1.6%; TSINetwork Rating: Average; www.cae.com) is the world’s largest maker of flight simulators....

1 min read

Pat McKeough

Growth Stocks

Narrower focus should lift Yum Brands

YUM! BRANDS INC. $79 (New York symbol YUM; Aggressive Growth Portfolio; Consumer sector; Shares outstanding: 337.0 million; Market cap: $26.6 billion; Priceto- sales ratio: 4.3; Dividend yield: 1.5%; TSINetwork Rating: Above Average; www.yum.com) operates 43,500 restaurants in over 135 countries....

2 min read

Pat McKeough

Growth Stocks

Updating Hewlett-Packard Enterprise Co., Motorola Solutions Inc. and Briggs & Stratton Corp.

HEWLETT-PACKARD ENTERPRISE CO. $13 (New York symbol HPE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 1.6 billion; Market cap: $20.8 billion; Price-to-sales ratio: 0.4; Dividend yield: 2.3%; TSINetwork Rating: Average; www.hpe.com) sells computing services and products, such as servers and analytics software, to businesses and governments.

The company recently merged most of its software operations with U.K.-based Micro Focus International plc....

2 min read

Pat McKeough

Growth Stocks

Mondelez faces market uncertainty

MONDELEZ INTERNATIONAL INC. $42 (Nasdaq symbol MDLZ; Conservative Growth Portfolio, Consumer sector; Shares o/s: 1.5 billion; Market cap: $63.0 billion; Price-to-sales ratio: 2.5; Divd. yield: 2.1%; TSINetwork Rating: Above Average; www.mondelezinternational.com) makes cookies and crackers (Oreo, Ritz), chocolate bars (Cadbury, Toblerone), gum and candy (Trident, Chiclets) and Halls cough drops.

In the third quarter of 2017, Mondelez’s sales rose 2.1%, to $6.5 billion from $6.4 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

Focus on software and services set to pay off

Slowing sales of new ATMs have hurt Diebold and NCR. However, profits should improve as they continue to expand their software and servicing businesses.

NCR CORP. $31 (New York symbol NCR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 121.8 million; Market cap: $3.8 billion; Priceto- sales ratio: 0.6; No dividends paid; TSINetwork Rating: Average; www.ncr.com) makes automated teller machines (ATMs), cash registers, self-serve checkouts and kiosks for theatres and arenas.

In the three months ended September 30, 2017, NCR’s revenue fell 0.2%, to $1.66 billion from $1.67 billion a year earlier....

2 min read

Pat McKeough

Growth Stocks

McKesson buys specialty distributor

MCKESSON CORP. $146 (New York symbol MCK; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 208.5 million; Market cap: $30.4 billion; Price-to-sales ratio: 0.2; Dividend yield 0.9%; TSINetwork Rating: Above Average; www.mckesson.com) is the largest wholesale drug distributor in the U.S....

1 min read

Pat McKeough

Growth Stocks

We still like this spinoff and parent

On November 1, 2016, Arconic spun off its bulk aluminum business (Alcoa) as a separate company. Each investor received one Alcoa Corp. share for every three ARNC shares they owned.

The split has benefitted both companies: Alcoa is up 69%, while Arconic has gained 34%....

2 min read

Pat McKeough

Growth Stocks

Three more Finance stocks to buy

In addition to Visa and American Express (see pages 111 and 112), we also recommend these three stocks to investors looking to broaden their Finance holdings beyond the big banks.

All three picks are leaders in their niche fields. That helps shield them from fintech startups or robo-advisors....

4 min read

Pat McKeough

Growth Stocks

Agilent share price up 53%

AGILENT TECHNOLOGIES INC. $69 (New York symbol A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 321.8 million; Market cap: $22.2 billion; Price-to-sales ratio: 5.0; Dividend yield: 0.9%; TSINetwork Rating: Average; www....

1 min read

Pat McKeough

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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.