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

Metro makes a big buy

METRO INC. $42 (Toronto symbol MRU; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 227.4 million; Market cap: $9.6 billion; Price-to-sales ratio: 0.7; Dividend yield: 1.5%; TSINetwork Rating: Average; www.metro. ca) operates 600 grocery stores and 250 drugstores, in Quebec and Ontario....

1 min read

Pat McKeough

Growth Stocks

Updating Loblaw Companies, Power Corp. and Canadian Pacific Railway

LOBLAW COMPANIES $69.04 (Toronto symbol L; Shares outstanding: 395.3 million; Market cap: $27.3 billion; TSINetwork Rating: Above Average; Dividend yield: 1.6%; www.loblaw.ca) operates 1,095 supermarkets across Canada.

In March 2014, the company purchased the Shoppers Drug Mart chain, which operates 1,330 drug stores across Canada.

The Shoppers chain also has 49 Home Health Care stores....

1 min read

Pat McKeough

Growth Stocks

Medical device maker has a bright future

BAXTER INTERNATIONAL INC. $62 (New York symbol BAX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 544.9 million; Market cap: $33.8 billion; Price-to-sales ratio: 3.3; Dividend yield: 1.0%; TSINetwork Rating: Average; www.baxter....

2 min read

Pat McKeough

Growth Stocks

Symantec’s cloud focus will pay off

SYMANTEC CORP. $33 (Nasdaq symbol SYMC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 614.5 million; Market cap: $20.3 billion; Price-to-sales ratio: 4.7; Dividend yield: 1.0%; TSINetwork Rating: Average; www.symantec.com) recently acquired privately held Blue Coat for $4.65 billion....

1 min read

Pat McKeough

Growth Stocks

Two ways to profit from smartphone growth

Global demand for smartphones remains strong. New models continue to spur users in developed countries to upgrade, while improving economic conditions make those devices more affordable in developing regions.

Both Apple and Alphabet, the parent company of Google, will continue to benefit from that trend....

2 min read

Pat McKeough

Growth Stocks

New markets fuel Nvidia’s jump

NVIDIA CORP. $176 (Nasdaq symbol NVDA; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 600.0 million; Market cap: $105.6 billion; Price-to-sales ratio: 12.6; Dividend yield: 0.6%; TSINetwork Rating: Average; www.nvidia.com) is a leading designer of 3D-capable video chips....

1 min read

Pat McKeough

Growth Stocks

Agilent is the better pick for new buying

Agilent Technologies is up 16% since spinning off its Keysight business on November 1, 2014. Keysight has gained 30% in that time. We continue to like the long-term prospects for both, but prefer Agilent for new buying.

AGILENT TECHNOLOGIES INC....

2 min read

Pat McKeough

Growth Stocks

Smart acquisitions drive Broadridge

BROADRIDGE FINANCIAL SOLUTIONS INC. $81 (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 116.5 million; Market cap: $9.4 billion; Price-to-sales ratio: 2.3; Dividend yield: 1.8%; TSINetwork Rating: Average; www.broadridge.com) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing.

In the fiscal 2017 fourth quarter, ended June 30, 2017, revenue jumped 38.1%, to $1.3 billion from $974.5 million a year earlier....

1 min read

Pat McKeough

Growth Stocks

Real estate could give these retailers a boost

Since the start of 2017, Macy’s is down nearly 40%, while Nordstrom has dipped 3%. Those declines are mainly because consumers are buying more goods online. That merchandise includes department store staples such as clothing, shoes and jewellery.

In response, both firms continue to expand their online businesses....

4 min read

Pat McKeough

Growth Stocks

WestJet sets a record

WESTJET AIRLINES $26.97 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1- 877-493-7853; www.westjet.com; Shares o/s: 123.3 million; Market cap: $3.1 billion; Divd. yield: 2.1%) carried a record 2.3 million passengers in August 2017. That’s a 13.8% rise from 2.0 million a year earlier....

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.