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

Bombardier ramps up production

BOMBARDIER INC. (Toronto symbols BBD.A $2.62 and BBD.B $2.59; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.7 billion; Market cap: $4.5 billion; Price-to-sales ratio: 0.3; Dividend suspended in February 2015; TSINetwork Rating: Speculative; www.bombardier.com) is the world’s third-largest maker of commercial aircraft, after Boeing (No.1) and Airbus (No....

1 min read

Pat McKeough

Growth Stocks

This long-time favourite still has room to rise

CAE INC. $19 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 268.5 million; Market cap: $5.1 billion; Priceto-sales ratio: 1.9; Dividend yield: 1.7%; 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

Growth Stocks

Updating Restaurant Brands International Inc., Potash Corp. of Saskatchewan and Torstar Corp.

RESTAURANT BRANDS INTERNATIONAL INC. $66 (www.rbi.com) plans to stop using chickens raised with human antibiotics at its Burger King and Tim Hortons fast-food outlets. These drugs help prevent infections, but their overuse increases the risk of developing new antibioticresistant bacteria....

1 min read

Pat McKeough

Growth Stocks

Updating BlackBerry Ltd., Pengrowth Energy Corp. and Bank of Nova Scotia

BLACKBERRY LTD. $9.49 (Toronto symbol BB; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 530.4 million; Market cap: $5.0 billion; Price-to-sales ratio: 3.4; No dividends paid; TSINetwork Rating: Speculative; www.blackberry.com) provides secure wireless communication services and equipment.

The company recently quit developing new smartphones as part of a strategy to focus on its more-promising software operations.

Under that new plan, BlackBerry has opened a facility in Ottawa to develop new technologies for self-driving cars using its QNX software system....

2 min read

Pat McKeough

Growth Stocks

Briggs & Stratton trims its losses

BRIGGS & STRATTON CORP. $23 (New York symbol BGG; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 42.8 million; Market cap: $984.4 million; Price-to-sales ratio: 0.5; Dividend yield: 2.4%; TSINetwork Rating: Above Average; www....

1 min read

Pat McKeough

Growth Stocks

Bard still has appeal after recent jump

C.R. BARD INC. $220 (New York symbol BCR; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 73.5 million; Market cap: $16.2 billion; Price-to-sales ratio: 4.5; Dividend yield: 0.5%; TSINetwork Rating: Above Average; www.crbard.com) makes over 15,000 medical devices in four main areas: vascular products such as stents and catheters (28% of sales); oncology products that detect and treat various types of cancer (27%); urology goods such as drainage and incontinence devices (25%); and surgical tools (17%)....

2 min read

Pat McKeough

Growth Stocks

Updating Tennant Co., Teradata Corp. and General Electric Co.

TENNANT CO. $72 (New York symbol TNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 17.6 million; Market cap: $1.3 billion; Priceto-sales ratio: 1.6; Dividend yield: 1.2%; TSINetwork Rating: Average; www.tennantco.com) makes industrial floorcleaning equipment, including scrubbers, sweepers and polishers....

2 min read

Pat McKeough

Growth Stocks

Big acquisition adds risk for SHW

SHERWIN-WILLIAMS CO. $271 (New York symbol SHW; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 92.9 million; Market cap: $25.2 billion; Price-to-sales ratio: 2.1; Dividend yield: 1.2%; TSINetwork Rating: Above Average; www.sherwin-williams....

1 min read

Pat McKeough

Growth Stocks

Hang on to these tech leaders

These two tech firms continue to dominate their main markets. However, we feel their shares will make only limited progress over the next few months.

APPLE INC. $117 (Nasdaq symbol AAPL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 5.3 billion; Market cap: $620.1 billion; Price-to-sales ratio: 2.9; Dividend yield: 1.9%; TSINetwork Rating: Average; www.apple.com) gets about 60% of its revenue from its iPhone smartphone....

2 min read

Pat McKeough

Growth Stocks

McKesson cuts its earnings outlook

MCKESSON CORP. $142 (New York symbol MCK; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 226.1 million; Market cap: $32.1 billion; Price-to-sales ratio: 0.2; Dividend yield 0.8%; TSINetwork Rating: Above Average; www.mckesson.com) agreed to buy the Rexall chain of 470 drug stores in Canada for $2.2 billion in March 2016.

To satisfy Canadian competition regulators, the company will sell 26 of these stores....

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.