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

Niche products give these five leaders an edge

All five of these firms operate businesses with specialized products and services that are hard to replace. That helps protect them from new competitors. They also fuel their growth by developing new products and making acquisitions. However, not all of them are currently buys.

MOTOROLA SOLUTIONS INC....

7 min read

Pat McKeough

Growth Stocks

A sales shift fuels MSFT

MICROSOFT CORP. $74 (Nasdaq symbol MSFT; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 7.7 billion; Market cap: $569.8 billion; Price-to-sales ratio: 6.4; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.microsoft.com) continues to gain from its move to sell its software as a subscription service.

In its fiscal 2017 fourth quarter, ended June 30, 2017, the company’s revenue rose 13.1%, to $23.3 billion from $20.6 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

Parent and spinoff have gains ahead

Dear Client:

In July 2015, eBay spun off its PayPal business as a separate company. eBay investors received one PayPal share for each share they held.

Share prices for both have jumped since the spinoff. That’s mainly because each is now focused on the expansion of its main businesses....

4 min read

Pat McKeough

Growth Stocks

Two financial techs: 1 buy, 1 hold

BROADRIDGE FINANCIAL SOLUTIONS $75.53 New York symbol BR; TSINetwork Rating: Average) (201714-3000; www.broadridge.com; Shares outstanding: 117.6 million; Market cap: $8.9 billion; Dividend yield: 1.8%) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing.

Investor communications makes up 72% of the company’s revenue....

2 min read

Pat McKeough

Growth Stocks

Aimia is now a sell

AIMIA INC. $1.74 (Toronto symbol AIM; TSINetwork Rating: Extra Risk) (514-897-6800; www.aimia.com; Shares o/s: 152.3 million; Market cap: $265.0 million; No dividends paid) has eliminated its dividend.

Investors also remain concerned about Air Canada’s decision to leave the company’s Aeroplan program in 2020 to start its own rewards plan....

1 min read

Pat McKeough

Growth Stocks

Two growth stocks poised for gains

ALIMENTATION COUCHE-TARD $60.65 (Toronto symbol ATD.B: TSINetwork Rating: Average) (1-800-3612612; www.couchetard.com; Shares outstanding: 567.4 million; Market cap: $34.8 billion; Dividend yield: 0.6%) operates 10,869 convenience stores throughout North America and Europe.

In the three months ended April 30, 2017, sales increased 30.1%, to $9.62 billion from $7.40 billion a year earlier (all figures except share price in U.S....

2 min read

Pat McKeough

Growth Stocks

High p/e raises its risk

AMAZON.COM $1026.87 (Nasdaq symbol AMZN; TSINetwork Rating: Average) (206266-1000; www.amazon.com; Shares outstanding: 478.0 million; Market cap: $490.8 billion; No dividends paid) will pay $13.7 billion in cash for organic grocery chain Whole Foods (symbol WFM on New York).

That firm, and its 460 locations, will continue to operate under the Whole Foods name and as a separate unit of Amazon.com.

Amazon spends big to maintain its rapid growth....

1 min read

Pat McKeough

Growth Stocks

SHOP links to eBay

SHOPIFY INC. $115.97 (Toronto symbol SHOP; TSINetwork Rating: Extra Risk) (613-241-2828; www.shopify.ca; Shares o/s: 90.7 million; Market cap: $10.8 billion; No dividend) offers merchants of all sizes Internet-based software to design and manage sales at their stores, websites and many other channels.

Shopify will soon add eBay (symbol EBAY on Nasdaq and a recommendation of Wall Street Stock Forecaster) to its growing number of sales channels.

This means that when shoppers use eBay to buy something from a Shopify merchant, their orders automatically go to Shopify for processing....

1 min read

Pat McKeough

Growth Stocks

Gretzky brand lifts profits for Peller

ANDREW PELLER LTD. (Toronto symbols ADW.A $11 and ADW.B $11; Income Portfolio, Consumer sector; Shares outstanding: 42.6 million; Market cap: $468.6 million; Price-to-sales ratio: 1.4; Dividend yield: 1.6%; TSINetwork Rating: Above Average; www.andrewpeller.com) is Canada’s second-largest producer of wines, after Constellation Brands.

Peller’s sales in the fiscal year ended March 31, 2017, rose 2.5%, to $342.6 million from $334.4 million in 2016....

1 min read

Pat McKeough

Growth Stocks

Pilot boom set to spur CAE’s growth

CAE INC. $23 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 268.3 million; Market cap: $6.2 billion; Priceto-sales ratio: 2.3; Dividend yield: 1.4%; TSINetwork Rating: Average; www.cae.com) is the world’s largest maker of flight simulators for commercial airlines and military clients....

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.