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

Ruling won’t hold back T. Rowe Price

T. ROWE PRICE GROUP INC. $73 (Nasdaq symbol TROW; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 241.3 million; Market cap: $17.6 billion; Price-to-sales ratio: 4.1; Dividend yield: 3.1%; TSINetwork Rating: Average; www.troweprice.com) sells mutual funds and wealth management services.

The U.S....

1 min read

Pat McKeough

Growth Stocks

ATM makers gain from focus on services

Diebold and NCR continue to expand the services they offer clients. That cuts their reliance on selling new ATMs and enhances their long-term profitability.

NCR CORP. $39 (New York symbol NCR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 121.1 million; Market cap: $4.7 billion; Priceto-sales ratio: 0.8; 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 late 2015, private-equity firm Blackstone Group (New York symbol BX) purchased $820 million worth of NCR’s preferred shares, which can be converted to common shares at $30.00 each....

2 min read

Pat McKeough

Growth Stocks

Updating Fair Isaac Corp., Sherwin-Williams Co., MTS Systems Corp.

FAIR ISAAC CORP. $134 (New York symbol FICO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 31.1 million; Market cap: $4.2 billion; Price-to-sales ratio: 4.5; Dividend suspended in June 2017; TSINetwork Rating: Average; www.fico.com) makes FICO Scores....

2 min read

Pat McKeough

Growth Stocks

Monsanto’s a buy ahead of takeover

MONSANTO CO. $117 (New York symbol MON, Aggressive Growth Portfolio; Manufacturing & Industry sector; Shares outstanding: 438.8 million; Market cap: $51.3 billion; Price-to-sales ratio: 3.6; Dividend yield: 1.8%; TSINetwork Rating: Above Average; www.monsanto.com) develops and sells technology-based agricultural products, such as genetically modified seeds, to farmers, grain processors and food companies....

1 min read

Pat McKeough

Growth Stocks

Quaker’s latest acquisition is a shrewd move

QUAKER CHEMICAL CORP. $141 (New York symbol KWR; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 13.3 million; Market cap: $1.9 billion; Price-to-sales ratio: 2.5; Dividend yield: 1.0%; TSINetwork Rating: Average; www.quakerchem.com) started up in 1918 and currently operates 36 plants in 21 countries....

2 min read

Pat McKeough

Growth Stocks

Archer Daniels expands in China

ARCHER DANIELS MIDLAND CO. $41 (New York symbol ADM; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 587.6 million; Market cap: $24.1 billion; Price-to-sales ratio: 0.4; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www....

1 min read

Pat McKeough

Growth Stocks

Here’s our Pick of the Month

INTACT FINANCIAL $92.59 (Toronto symbol IFC; TSINetwork Rating: Extra Risk) (416-341-1464; www.intactfc.com; Shares outstanding: 131.0 million; Market cap: $12.1 billion; Dividend yield: 2.8%) is Canada’s largest provider of property and casualty insurance....

1 min read

Pat McKeough

Growth Stocks

A shift to the cloud lifts these top techs

ADOBE SYSTEMS INC. $138.25 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408-536-6000; www.adobe.com; Shares outstanding: 494.7 million; Market cap: $68.4 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

FICO opts for buybacks

FAIR ISAAC CORP. $134.53 (New York symbol FICO; TSINetwork Rating: Average) (415-4722211; www.fairisaac.com; Shares outstanding: 31.0 million; Market cap: $4.2 billion; Dividend yield: 0.1%) will now discontinue its regular cash dividends in favour of using excess cash flow for share repurchases.

Dividends are a great way for investors to enhance their long-term returns....

1 min read

Pat McKeough

Growth Stocks

Updating Dorel Industries, Shopify Inc. and Nissan Motor (ADR)

DOREL INDUSTRIES $34.03 (Toronto symbol DII.B; TSINetwork Rating: Extra Risk) (514-934-3034; www. dorel.com; Shares outstanding: 32.3 million; Market cap: $1.1 billion; Dividend yield: 4.8%) makes a range of items: ready-to-assemble home and office furniture; juvenile products such as car seats, strollers, high chairs, toddler beds and cribs; and bicycles and other sporting goods.

In the first quarter ended March 31, 2017, sales rose only slightly, to $646.7 million from $645.9 million 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.