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

Popeyes acquistion boosts profit

RESTAURANT BRANDS INTERNATIONAL INC. $62 (New York symbol QSR; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 463.1 million; Market cap: $28.7 billion; Price-to-sales ratio: 6.6; Dividend yield: 1.3%; TSINetwork Rating: Average; www.rbi.com) recently bought the Popeyes Louisiana Kitchen chain for $1.64 billion.

As a result, overall sales in the second quarter of 2017 gained 8.9%, to $1.13 billion from $1.04 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

Updating L Brands Inc., Diageo Plc ADRs and Sony Corp. ADRs

L BRANDS INC. $36 (New York symbol LB; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 286.8 million; Market cap: $10.3 billion; Price-to-sales ratio: 0.9; Dividend yield: 6.6%; TSINetwork Rating: Average; www.lb.com) owns lingerie chain Victoria’s Secret as well as Bath & Body Works outlets....

2 min read

Pat McKeough

Growth Stocks

Sales and profit jump for Idexx

IDEXX LABORATORIES INC. $154 (Nasdaq symbol IDXX; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 87.3 million; Market cap: $13.4 billion; Price-to-sales ratio: 7.2; No dividends paid; TSINetwork Rating: Average; www.idexx.com) gets about 85% of its revenue from equipment that veterinarians use to detect diseases in pets....

1 min read

Pat McKeough

Growth Stocks

Cisco deepens its expertise

CISCO SYSTEMS INC. $31 (Nasdaq symbol CSCO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 5.0 billion; Market cap: $155.0 billion; Price-to-sales ratio: 3.2; Dividend yield 3.7%; TSINetwork Rating: Average; www.cisco....

1 min read

Pat McKeough

Growth Stocks

SYMC looks to the cloud

SYMANTEC CORP. $28.30 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (650- 527-8000; www.symantec.com; Shares outstanding: 608.2 million; Market cap: $17.2 billion; Dividend yield: 1.1%) sells computersecurity technology, including antivirus and email-filtering software, to businesses and consumers.

Symantec’s earnings per share rose 13.8% in the three months ended June 30, 2017, to $0.33 from $0.29....

1 min read

Pat McKeough

Growth Stocks

Updating Amazon.com, Wyndham Worldwide and ACI Worldwide

AMAZON.COM $978.18 (Nasdaq symbol AMZN; TSINetwork Rating: Average) (206-266-1000; www.amazon. com; Shares outstanding: 480.4 million; Market cap: $469.9 billion; No dividends paid) has reached a deal with the troubled Sears Holdings Corp. (symbol SHLD on Nasdaq) to allow the department store chain to sell its Kenmore- branded appliances on Amazon’s websites....

2 min read

Pat McKeough

Growth Stocks

Chipotle struggles onward

CHIPOTLE MEXICAN GRILL $320.13 (New York symbol CMG; TSINetwork Rating: Extra Risk) (303-595-4000; www.chipotle.com; Shares outstanding: 28.5 million; Market cap: $9.1 billion; No dividend) continues its fight to rebuild customer traffic after its 2015 E. coli and norovirus outbreaks.

That recovery was further challenged by the July 2017 closure of another Chipotle restaurant in Sterling, Virginia; more than 100 diners fell ill in a norovirus outbreak....

1 min read

Pat McKeough

Growth Stocks

Earnings jump for parent and spinoff

FIRSTSERVICE CORP. $80.66 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 34.6 million; Market cap: $2.9 billion; Dividend yield: 0.8%) spun off its commercial real estate business, Colliers International Group, on June 1, 2015, and handed out shares to its investors.

Since the spinoff, FirstService has carried on with residential property management and its property improvement services for commercial and residential real estate.

In the second quarter, ended June 30, 2017, the company’s revenue rose 12.9%, to $434.9 million from $385.1 million a year earlier (all figures except share price in U.S....

2 min read

Pat McKeough

Growth Stocks

The Oprah effect

WEIGHT WATCHERS INTERNATIONAL $47.21 (New York symbol WTW; TSINetwork Rating: Extra Risk) (212-589-2700; www.weightwatchers.com; Shares outstanding: 64.2 million; Market cap: $3.0 billion; No dividends paid) reported 3.5 million active subscribers as of July 1, 2017....

1 min read

Pat McKeough

Growth Stocks

Here’s our Pick of the Month

MITEL NETWORKS $10.50 (Toronto symbol MNW; TSINetwork Rating: Extra Risk) (613-592-2122; www.mitel.ca; Shares outstanding: 121.6 million; Market cap: $1.3 billion; No dividends paid) makes technology that integrates landlines and mobile phones. The company also offers callcentre and videoconferencing products.

In the quarter ended June 30, 2017, Mitel’s sales fell 8.3%, to $238.6 million from $260.3 million a year earlier (all figures except share price and market cap in U.S....

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.