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

Leon’s builds big in B.C.

LEON’S FURNITURE LTD. $18.45 (Toronto symbol LNF; TSINetwork Rating: Average) (416-243-7880; www.leons.ca; Shares outstanding: 72.3 million; Market cap: $1.4 billion; Dividend yield: 2.6%) recently opened its stateof- the-art 432,346-square-foot distribution centre in Delta, B.C....

1 min read

Pat McKeough

Growth Stocks

Hold on to these service companies

STANTEC INC. $35.44 (Toronto symbol STN; TSINetwork Rating: Extra Risk) (780-917-7288; www.stantec.com; Shares o/s: 113.8 million; Market cap: $4.1 billion; Divd. yield: 1.4%) sells consulting, project management, design and technology services. Most of its clients operate in the oil and gas, transportation and construction industries.

In the three months ended September 30, 2017, the company’s revenue rose 3.3%, to $1.30 billion from $1.26 billion a year earlier....

2 min read

Pat McKeough

Growth Stocks

Updating Restaurant Brands International Inc., Transcontinental Inc. and IGM Financial Inc.

RESTAURANT BRANDS INTERNATIONAL INC. $83 (Toronto symbol QSR; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 463.1 million; Market cap: $38.4 billion; Price-to-sales ratio: 9.0; Dividend yield: 1.3%; TSINetwork Rating: Average; www.rbi.com) is the world’s third-largest fast-food operator after McDonald’s (No....

2 min read

Pat McKeough

Growth Stocks

New services a plus for BlackBerry

BLACKBERRY LTD. $14 (Toronto symbol BB; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 530.3 million; Market cap: $7.4 billion; Price-to-sales ratio: 7.0; No dividends paid; TSINetwork Rating: Speculative; www.blackberry.com) recently quit developing smartphones as part of a plan to focus on its more promising communications software....

1 min read

Pat McKeough

Growth Stocks

Food producers ready for NAFTA changes

As part of the recent negotiations to update the North American Free Trade Agreement (NAFTA), the U.S. has demanded that Canada dismantle its supply management systems.

That would open up the domestic dairy and poultry industries to cheaper foreign imports....

4 min read

Pat McKeough

Growth Stocks

Loblaw preps for Amazon

LOBLAW COMPANIES $66.98 (Toronto symbol L; Shares outstanding: 395.3 million; Market cap: $26.1 billion; TSINetwork Rating: Above Average; Dividend yield: 1.6%; www.loblaw.ca) is cutting 500 executive and management jobs across the company.

The company plans to reinvest the savings in digital and e-commerce services....

1 min read

Pat McKeough

Growth Stocks

Updating Yum China Holdings Inc., Newmont Mining Corp. and Apache Corp.

YUM CHINA HOLDINGS INC. $40 (www.yumchina.com) operates 7,747 fast-food outlets in China, mainly under the KFC and Pizza Hut banners. Excluding costs related to its November 2016 spinoff from Yum! Brands and other unusual items, the company earned $0.52 a share in the quarter ended August 31, 2017....

1 min read

Pat McKeough

Growth Stocks

ADM addresses takeover rumour

ARCHER DANIELS MIDLAND CO. $43 (New York symbol ADM; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 587.6 million; Market cap: $25.3 billion; Price-to-sales ratio: 0.4; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www....

1 min read

Pat McKeough

Growth Stocks

Updating HP Inc., Boeing Co. and Buckeye Partners L.P.

HP INC. $22 (New York symbol HPQ; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.7 billion; Market cap: $37.4 billion; Priceto- sales ratio: 0.7; Dividend yield: 2.5%; TSINetwork Rating: Average; www.hp.com) makes computers and printers.

Thanks to strong demand for its premium laptop computers, HP expects to earn between $1.74 and $1.84 a share for the fiscal year ending October 31, 2017....

2 min read

Pat McKeough

Growth Stocks

Shift to software boosts NCR

NCR CORP. $32 (New York symbol NCR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 121.5 million; Market cap: $3.9 billion; Price-to-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 quarter ended September 30, 2017, the company’s revenue fell 0.8%, to $1.66 billion from $1.68 billion 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.