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

Online renewals pay off for Microsoft

MICROSOFT CORP. $89 (Nasdaq symbol MSFT; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 7.7 billion; Market cap: $685.3 billion; Price-to-sales ratio: 7.2; Dividend yield: 1.9%; TSINetwork Rating: Above Average) continues to benefit from its shift to selling its software as online subscriptions.

In the fiscal 2018 second quarter, ended December 31, 2017, revenue rose 12.0%, to $28.9 billion from $25.8 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

Chipmakers still have room to rise

In the past few years, these two computer-chip makers have diversified their product lines, mainly through acquisitions. That move has reduced their dependence on traditional chips, which continue to see stagnant demand.

As a result of two big purchases, Intel is now less reliant on consumers and businesses upgrading their personal computers.

Texas Instruments also continues to benefit from its decision to quit making chips for cellphones and its September 2011 purchase of analog chip maker National Semiconductor Corp.

Both stocks have more than doubled in the past five years....

4 min read

Pat McKeough

Growth Stocks

Updating Sherritt International, Delphi Energy and Domino’s Pizza

SHERRITT INTERNATIONAL $1.29 (Toronto symbol S; TSINetwork Rating: Speculative) (1-800-704-6698; www.sherritt.com; Shares o/s: 396.2 million; Market cap: $512.0 million; No dividends paid) is now focused on nickel/cobalt production, with operations in Cuba and Canada.

Sherritt shares are up 61% since August 2017 due to surging cobalt prices....

2 min read

Pat McKeough

Growth Stocks

WestJet fills top post

WESTJET AIRLINES $24.36 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1-877-493-7853; www.westjet.com; Shares o/s: 123.3 million; Market cap: $2.8 billion; Dividend yield: 2.3%) now has a new CEO after the recent and unexpected resignation of Gregg Saretsky....

1 min read

Pat McKeough

Growth Stocks

These two sell into expanding markets

SIERRA WIRELESS $21.28 (Toronto symbol SW; TSINetwork Rating: Extra Risk) (604-231-1100; www.sierrawireless.com; Shares outstanding: 35.9 million; Market cap: $762.0 million; No dividend. paid) makes digital components that connect products, including smart electricity meters and vehicles, to the Internet....

2 min read

Pat McKeough

Growth Stocks

Russel expands U.S. reach

RUSSEL METALS $29.39 (Toronto symbol RUS; TSINetwork Rating: Extra Risk) (905-819-7777; www.russelmetals.com; Shares o/s: 61.9 million; Market cap: $1.8 billion; Dividend yield: 5.2%) is one of North America’s largest metal distributors....

1 min read

Pat McKeough

Growth Stocks

Hold on to these high P/E tech stocks

SHOPIFY INC. $193.00 (Toronto symbol SHOP; TSINetwork Rating: Extra Risk) (613-241-2828; www.shopify.ca; Shares o/s: 99.9 million; Market cap: $20.3 billion; No dividend) offers merchants of all sizes Internet-based software to design, set up and manage stores across multiple sales channels....

2 min read

Pat McKeough

Growth Stocks

WTW fills a need

WEIGHT WATCHERS INTERNATIONAL $65.70 (New York symbol WTW; TSINetwork Rating: Extra Risk) (212-589-2700; www.weightwatchers.com; Shares o/s: 64.5 million; Market cap: $4.0 billion; No dividends paid) plans to launch a new service called WW Healthy Kitchen....

1 min read

Pat McKeough

Growth Stocks

Wait till their earnings catch up to their price

Restaurant Brands and Saputo have fuelled their recent growth with acquisitions. Both companies have a strong history of absorbing new businesses that improve their profitability. Those track records cut their risk of growing by acquisition. However, currently, both stocks seem expensive in relation to their earnings....

2 min read

Pat McKeough

Growth Stocks

New firm keeps its dividend promise

NUTRIEN LTD. $65 (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 644.2 million; Market cap: $41.9 billion; Price-to-sales ratio: n.a.; Dividend yield: 3.2%; TSINetwork Rating: Average; www.nutrien.com) is the new firm formed by the merger of Agrium (old symbol AGU) and rival fertilizer producer Potash Corp....

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.