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

Mitel adds cloud users

MITEL NETWORKS $9.86 (Toronto symbol MNW; TSINetwork Rating: Extra Risk) (613592-2122; www.mitel.ca; Shares outstanding: 122.7 million; Market cap: $1.2 billion; No dividends paid) makes technology that integrates landlines and mobile phones. The company also offers call-centre and videoconferencing products.

Mitel has moved from just selling programs that are installed at its customers’ offices; it now uses a cloud model, where it keeps its software on its own servers and sells it through online subscriptions....

1 min read

Pat McKeough

Growth Stocks

Liquidity problems weigh on HCG

HOME CAPITAL GROUP INC. $9.64 (Toronto symbol HCG; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 64.3 million; Market cap: $619.9 million; Price-to-sales ratio: 1.1; Dividend suspended in May 2017; TSINetwork Rating: Speculative; www.homecapital.com) is a mortgage lender serving borrowers who fail to meet the stricter stan dards of Canada’s big banks and other larger, traditional lenders.

Due to charges that the company failed to disclose material information in a timely manner, depositors continue to remove their cash from Home Trust (Home Capital’s wholly owned banking subsidiary)....

1 min read

Pat McKeough

Growth Stocks

Lower costs spur Maple Leaf

MAPLE LEAF FOODS INC. $35 (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 129.6 million; Market cap: $4.5 billion; Price-to-sales ratio: 1.4; Dividend yield: 1.3%; TSINetwork Rating: Average; www.mapleleaffoods.com) sells fresh and prepared meats under the Maple Leaf and Schneider brands.

The company continues to benefit from a recently completed restructuring plan....

1 min read

Pat McKeough

Growth Stocks

Top technology stocks look to expand

These leading technology companies will likely use their strong balance sheets to make acquisitions. While that adds risk, they both have a solid history of successfully absorbing new businesses to expand their earnings.

CGI GROUP INC. $67 (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 296.2 million; Market cap: $19.8 billion; Price-to-sales ratio: 1.9; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) is Canada’s largest provider of computer-outsourcing services....

2 min read

Pat McKeough

Growth Stocks

Higher rents lift RioCan’s cash flow

RIOCAN REAL ESTATE INVESTMENT TRUST $25 (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 326.9 million; Market cap: $8.2 billion; Price-to-sales ratio: 7.2; Dividend yield: 5.6%; TSINetwork Rating: Average; www.riocan.com) owns all or part of 300 shopping centres in Canada....

1 min read

Pat McKeough

Growth Stocks

Order backlog sets Finning up for gains

FINNING INTERNATIONAL INC. $27 (Toronto symbol FTT; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 168.2 million; Market cap: $4.5 billion; Price-to-sales ratio: 0.8; Dividend yield: 2.7%; TSINetwork Rating: Above Average; www.finning.com) sells, rents and services Caterpillar-brand heavy equipment.

Western Canada (B.C., Alberta, Saskatchewan, Yukon, Northwest Territories and parts of Nunavut) supplied 50% of the company’s revenue in 2016....

2 min read

Pat McKeough

Growth Stocks

Research spending keeps these techs on top

These four technology companies continue to dominate their specific industries. They also spend large sums on the development of products. That makes it difficult for new competitors to cut into their market share.

That high research spending depresses their current earnings and makes them look more expensive in relation to their projected earnings....

7 min read

Pat McKeough

Growth Stocks

New business fuels Broadridge

BROADRIDGE FINANCIAL SOLUTIONS INC. $75 (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 117.1 million; Market cap: $8.8 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 2017 third quarter, ended March 31, 2017, revenue jumped 46.4%, to $1.0 billion from $688.8 million a year earlier....

1 min read

Pat McKeough

Growth Stocks

FedEx’s big acquisition will pay off

FEDEX CORP. $193 (New York symbol FDX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 267.4 million; Market cap: $51.6 billion; Price-to-sales ratio: 0.9; Dividend yield: 0.8%; TSINetwork Rating: Average; www.fedex.com) delivers packages in the U.S....

2 min read

Pat McKeough

Growth Stocks

Updating ABB Ltd. ADRs, McCormick & Co. Inc. and Phillips Electronics N.V. ADRs

ABB LTD. ADRs $25 (New York symbol ABB; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 2.0 billion; Market cap: $50.0 billion; Price-to-sales ratio: 1.6; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www.abb.com) makes transformers, transmission systems and circuit breakers for electrical utilities....

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.