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

CGI deal widens its global exposure

CGI INC. $131 is a buy for aggressive investors. The company (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 217.2 million; Market cap: $28.5 billion; Price-to-sales ratio: 1.9; Dividend yield: 0.5%; TSINetwork Rating: Average; www.cgi.com) is Canada’s largest provider of computer outsourcing services. It helps its clients automate certain routine functions like accounting and buying supplies. That makes companies more efficient and lets them focus on their main businesses.

1 min read

Pat McKeough

Growth Stocks

Loblaw expands ‘no name’ offerings

LOBLAW COMPANIES LTD. $63 is a buy. The company (Toronto symbol L; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.2 billion; Market cap: $75.6 billion; Price-to-sales ratio: 1.239; Dividend yield: 0.9%; TSINetwork Rating: Above Average; www.loblaw.ca) operates 1,160 supermarkets under several banners, including Loblaws, Zehrs, Provigo, Real Canadian Superstore and No Frills. It also owns the Shoppers Drug Mart chain, which has 1,363 drugstores across Canada.

1 min read

Pat McKeough

Growth Stocks

Maple Leaf’s costs add risk

MAPLE LEAF FOODS INC. $26 is still a hold. The company (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 124.9 million; Market cap: $3.2 billion; Price-to-sales ratio: 0.6; Dividend yield: 3.2%; TSINetwork Rating: Average; www.mapleleaffoods.com) sells fresh and prepared meats under the Maple Leaf and Schneider labels. It also makes plant-based protein products under the Lightlife and Field Roast brands.

1 min read

Pat McKeough

Growth Stocks

CPKC’s efficiency helps offset tariffs

CPKC continues to do a good job controlling its costs. That will help spur its profits despite the threat of tariffs on their freight volumes.

CANADIAN PACIFIC KANSAS CITY, $97.67, is a buy. The company (Toronto symbol CP; shares o/s: 900.8 million; Market cap: $88.0 billion; Rating: Above Average; Divd. yield: 0.9%) ships freight over a 32,190-kilometre rail network. That line runs mainly between Montreal and Vancouver, with links to hubs in the U.S. Midwest and Northeast. With the addition of Kansas City Southern, the new company connects with important hubs and ports on the U.S. Gulf Coast and in Mexico.

1 min read

Pat McKeough

Growth Stocks

Here’s our Power Recommendation Portfolio for January 2026

Understanding our recommendations: Power Buy—These stocks are our top choices for new buying now. We feel each currently offers the best combination of fundamentals (earnings, sales, cash flow and so on) plus external factors (industry trends and the current share price) to give it a chance of above-average gains. Buy—high-quality stocks with strong growth prospects. However, they are likely to grow at a slower rate than our Power Buys. Sell—these are stocks that no longer inspire our confidence. As Power Growth Investor focuses on maximizing profits for aggressive investors, we prefer to sell poorly performing stocks instead of holding them and waiting for a rebound.

1 min read

Pat McKeough

Growth Stocks

This stock offers limited prospects

You should remain wary of stocks that attract broker/media attention because of high-profile products or services, and their business models. Here’s a closer look at one stock with risks that prospective investors should take into consideration:

FERMI INC., $9.06, (Nasdaq symbol FRMI; TSINetwork Rating: Extra Risk) (www.fermiamerica.com; Shares outstanding: 592.8 million; Market cap: $6.0 billion; No dividends paid) is a real estate investment trust that plans to develop electrical generating facilities in the Texas Panhandle region. These plants are aimed at supplying power to artificial intelligence (AI) datacentres that the company is also developing.

1 min read

Pat McKeough

Growth Stocks

High R&D spending keeps these two on top

PagerDuty and Twilio were well positioned to gain during the pandemic, but since early 2021 they have dropped along with many other tech/platform stocks. Still, we think both have room to rebound as they continue to experience strong and growing demand. Both are buys.

PAGERDUTY INC., $12.81, is a buy. The company (New York symbol PD; TSINetwork Rating: Extra Risk) (pagerduty.com; Shares o/s: 91.8 million; Market cap: $1.2 billion; No divd.) operates a platform that collects real-time data from software systems and devices and then notifies its IT customers of incidents that could harm operations.

2 min read

Pat McKeough

Growth Stocks

Disney’s ‘Zootopia 2' is a huge hit

WALT DISNEY CO., $110.63, is a buy. The company’s (New York symbol DIS; TSINetwork Rating: Above Average) (Shares o/s: 1.8 billion; Market cap: $199.3 billion; Dividend yield: 1.3%) just-released “Zootopia 2" movie earned $556 million globally over its opening weekend, the biggest debut ever for an animated film.

1 min read

Pat McKeough

Growth Stocks

Corteva’s spinoff will unlock investor value

Corteva took its current form when the old DowDuPont spun it off in 2019 as part of the three-way breakup of its operations. Since the spinoff, Corteva’s shares have jumped 147%!

Corteva now plans to split its seeds and chemical operations into two separate, publicly traded firms. We expect the plan will work out well for investors, as spinoffs help unlock value. It’s also possible that the two new firms could become attractive takeover targets. Corteva is a Power Buy.

2 min read

Pat McKeough

Growth Stocks

EXE hits new highs

EXTENDICARE INC., $21.99, is a buy. The company (Toronto symbol EXE; TSINetwork Rating: Extra Risk) (www.extendicare.com; Shares outstanding: 94.5 million; Market cap: $2.1 billion; Dividend yield: 2.3%) keeps expanding its ParaMed Home Health Care unit—and that has spurred its shares to all-time highs.

ParaMed provides nursing care and other forms of assistance to clients who remain in their own homes.

1 min read

Pat McKeough

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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.