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

Agilent is the better pick for new buying

Agilent Technologies is up 16% since spinning off its Keysight business on November 1, 2014. Keysight has gained 30% in that time. We continue to like the long-term prospects for both, but prefer Agilent for new buying.

AGILENT TECHNOLOGIES INC....

2 min read

Pat McKeough

Growth Stocks

Smart acquisitions drive Broadridge

BROADRIDGE FINANCIAL SOLUTIONS INC. $81 (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 116.5 million; Market cap: $9.4 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 fiscal 2017 fourth quarter, ended June 30, 2017, revenue jumped 38.1%, to $1.3 billion from $974.5 million a year earlier....

1 min read

Pat McKeough

Growth Stocks

Real estate could give these retailers a boost

Since the start of 2017, Macy’s is down nearly 40%, while Nordstrom has dipped 3%. Those declines are mainly because consumers are buying more goods online. That merchandise includes department store staples such as clothing, shoes and jewellery.

In response, both firms continue to expand their online businesses....

4 min read

Pat McKeough

Growth Stocks

WestJet sets a record

WESTJET AIRLINES $26.97 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1- 877-493-7853; www.westjet.com; Shares o/s: 123.3 million; Market cap: $3.1 billion; Divd. yield: 2.1%) carried a record 2.3 million passengers in August 2017. That’s a 13.8% rise from 2.0 million a year earlier....

1 min read

Pat McKeough

Growth Stocks

Domino’s uses Ford tech

DOMINO’S PIZZA $197.58 (New York symbol DPZ; TSINetwork Rating: Average) (734-930- 3008; www.dominos.com; Shares outstanding: 48.3 million; Market cap: $9.5 billion; Dividend yield: 0.9%) has teamed up with automaker Ford Motor Co. (symbol F on New York, and a recommendation of our Wall Street Stock Forecaster newsletter) to test a new system to deliver pizza by self-driving cars.

During these trials, a Ford engineer will be in the driver’s seat....

1 min read

Pat McKeough

Growth Stocks

Two tech leaders: 1 buy, 1 hold

ADOBE SYSTEMS INC. $149.96 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408-536-6000; www.adobe. com; Shares outstanding: 493.4 million; Market cap: $77.3 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

Strong reputations cut their cyclical risk

These two companies supply products and services vital to the success of oil exploration and mining firms While they remain vulnerable to cyclical downturns, their high market share and strong reputations continue to help their profits rebound as commodity prices recover.

FINNING INTERNATIONAL INC....

2 min read

Pat McKeough

Growth Stocks

Saputo diversifies its product line

SAPUTO INC. $43 (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 386.2 million; Market cap: $16.6 billion; Price-to-sales ratio: 1.4; Dividend yield: 1.5%; TSINetwork Rating: Average; www.saputo.com) is Canada’s largest producer of dairy products, including milk, butter and cheese....

1 min read

Pat McKeough

Growth Stocks

CAE expands operations in Asia

CAE INC. $20 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 268.3 million; Market cap: $5.4 billion; Price-to-sales ratio: 2.0; Dividend yield: 1.8%; TSINetwork Rating: Average; www.cae.com) is the world’s largest maker of flight simulators....

1 min read

Pat McKeough

Growth Stocks

These growth stocks are down, but not out

These three stocks have moved sharply lower in the past few years. In Bombardier’s case, the drop is mainly due to the heavy costs to develop its new CSeries plane; for Black- Berry, it quit making smartphones due to intense competition from Apple’s iPhone and Android-powered devices; and lower oil prices have hurt Pengrowth’s cash flow as it expands key projects and pays down debt....

7 min read

Pat McKeough

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Investors Association of Canada
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Inner Circle Pro subscriber

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.