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 industrials aim to target new markets

Each of these three small industrial firms has used acquisitions to expand into new markets and regions. While it pays to take a skeptical view of companies that buy other firms to grow, we feel these particular purchases will pay off. Even so, not all of three stocks are now buys....

5 min read

Pat McKeough

Growth Stocks

NFL deal enhances eBay business

EBAY INC. $38 (Nasdaq symbol EBAY; Aggressive Growth Portfolio, Finance sector; Shares o/s: 1.1 billion; Market cap: $41.8 billion; Price to-sales ratio: 4.2; No divd. paid; TSINetwork Rating: Above Average; www.ebay.com) operates e-commerce websites where sellers pay fees to auction items or offer them at fixed prices....

1 min read

Pat McKeough

Growth Stocks

Brick-and-mortar retailers need a catalyst

Traditional retailers, such as the three we analyze below, continue to grapple with strong competition from online sellers. That has forced them to close stores and sell real estate.

These companies still own some the best-known brands in the industry, which should help them survive....

5 min read

Pat McKeough

Growth Stocks

Expect more gains from these two

Conagra’s move to spin off its frozen potato business Lamb Weston in 2016 has spurred the shares of both companies: Conagra is up 9% since the spinoff, while Lamb Weston has soared 67%.

A large part of those gains is the smaller size and focus of each company....

4 min read

Pat McKeough

Growth Stocks

They’ll gain with a resources surge

WAJAX CORP. $23.97 (Toronto symbol WJX; TSINetwork Rating: Extra Risk) (905-212-3300; www.wajax. ca; Shares outstanding: 20.0 million; Market cap: $480.1 million; Dividend yield: 4.22%) sells and services cranes, forklifts and other heavy equipment....

2 min read

Pat McKeough

Growth Stocks

Updating Chipotle, New Gold, and Weight Watchers

CHIPOTLE MEXICAN GRILL $319.70 (New York symbol CMG; TSINetwork Rating: Extra Risk) (303-595- 4000; www.chipotle.com; Shares outstanding: 28.2 million; Market cap: $9.0 billion; No dividend) continues its fight to rebuild its reputation and customer traffic after its food contamination scares.

Chipotle has implemented highly publicized food-safety training for its employees....

2 min read

Pat McKeough

Growth Stocks

Symantec ups security

SYMANTEC CORP. $28.63 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (650-527- 8000; www.symantec.com; Shares outstanding: 620.0 million; Market cap: $17.8 billion; Dividend yield: 1.0%) will now buy SurfEasy Inc. from Opera Software for a reported $38.5 million.

SurfEasy is a leading provider of Virtual Private Network (VPN) software for the online privacy and security of smartphones, tablets and computers.

VPN technology encrypts consumers’ online communications, including sensitive information such as passwords and credit-card information....

1 min read

Pat McKeough

Growth Stocks

These tech stocks have gains ahead

MITEL NETWORKS $9.45 (Toronto symbol MNW; TSINetwork Rating: Extra Risk) (613-592-2122; www.mitel. ca; Shares outstanding: 120.0 million; Market cap: $1.1 billion; No dividends paid) makes technology that integrates landlines and mobile phones. The company also offers callcentre and videoconferencing products.

In the quarter ended September 30, 2017, Mitel’s sales rose 2.3%, to $241.5 million from $234.5 million a year earlier (all figures except share price in U.S....

2 min read

Pat McKeough

Growth Stocks

Profit from robo-advisors

BROADRIDGE FINANCIAL SOLUTIONS $89.48 New York symbol BR; TSINetwork Rating: Average) (201-714-3000; www.broadridge. com; Shares outstanding 116.6 million; Market cap: $10.4 billion; Dividend yield: 1.6%) has now formed a partnership with Canadianbased robo-advisor Wealthsimple....

1 min read

Pat McKeough

Growth Stocks

Profits keep rising for these retailers

ALIMENTATION COUCHE-TARD $66.95 (Toronto symbol ATD.B: TSINetwork Rating: Average) (1-800-361- 2612; www.couchetard.com; Shares outstanding: 567.4 million; Market cap: $37.8 billion; Dividend yield: 0.5%) operates 10,869 convenience stores throughout North America and Europe.

In the three months ended October 15, 2017, sales jumped 43.8%, to $12.14 billion from $8.45 billion a year earlier (all figures except share price in U.S....

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.