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

Acquisition spurs State Street’s profit

STATE STREET CORP. $79 (New York symbol STT; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 385.7 million; Market cap: $30.5 billion; Price-to-sales ratio: 3.0; Dividend yield: 1.9%; TSINetwork Rating: Average; www.statestreet.com) sells accounting and administrative services to the operators of mutual funds and pension plans....

1 min read

Pat McKeough

Growth Stocks

We also like these five Finance leaders

In addition to Visa (see page 1), we also like the outlook for these five non-bank, Finance-sector stocks. That includes State Street and T. Rowe Price.

Each of them is a leader in its niche area. That helps cut their risk. They also have done a good job of expanding their profits with attractive acquisitions and improved efficiency....

6 min read

Pat McKeough

Growth Stocks

FedEx buys some growth

FEDEX CORP. $192 (New York symbol FDX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 265.8 million; Market cap: $51.0 billion; Price-to-sales ratio: 1.0; Dividend yield: 0.8%; TSINetwork Rating: Average; www.fedex.com) completed its $4.9 billion acquisition of Netherlands-based courier TNT Express in May 2016.

Without unusual items, the company earned $1.23 billion in its fiscal 2017 second quarter, ended November 30, 2016....

1 min read

Pat McKeough

Growth Stocks

Visa enhances its special appeal

Dear client,

Visa seems expensive in relation to its earnings. However, we feel the company’s low-risk business model and strong prospects justify this multiple.

For example, as a payment processor, Visa doesn’t suffer when credit card users fall behind on their payments....

4 min read

Pat McKeough

Growth Stocks

SYMC adds a niche

SYMANTEC CORP. $24.84 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (650-527-8000; www.symantec. com; Shares outstanding: 623.4 million; Market cap: $15.5 billion; Divd. yield: 1.2%) will pay $2.3 billion for LifeLock Inc. (New York symbol LOCK). That business sells identity-theft protection services to 4.4 million subscribers.

Symantec sees LifeLock as a way to boost its lagging consumer security business.

The shift from desktop computers to mobile devices has weakened sales of consumer anti-virus software....

1 min read

Pat McKeough

Growth Stocks

WestJet picks McCafe

WESTJET AIRLINES $22.74 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1-877-493-7853; www.westjet.com; Shares o/s: 118.9 million; Market cap: $2.8 billion; Dividend yield: 2.5%) has partnered with McDonald’s Canada (its parent, McDonald’s Corp., symbol MCD on New York, is a recommendation of our Wall Street Stock Forecaster newsletter) to serve the restaurant chain’s McCafe Premium Roast coffee on board its aircraft.

On December 1, 2016, WestJet began offering a complimentary McCafe Premium Roast coffee to all passengers across its fleet of Boeing 737 and 767 aircraft....

1 min read

Pat McKeough

Growth Stocks

Updating Cameco Corp., Amazon.com and Domino’s Pizza

CAMECO CORP. $13.39 (Toronto symbol CCO; TSINetwork Rating: Extra Risk) (306-956-6200; www.cameco. com; Shares outstanding: 395.8 million; Market cap: $5.4 billion; Dividend yield 3.0%) is the world’s biggest uranium producer. It has large, high-grade reserves spread across several mining sites; it also has low-cost operations and significant market share.

Uranium prices are at their lowest levels in over a decade....

2 min read

Pat McKeough

Growth Stocks

Research powers Sierra

SIERRA WIRELESS $21.56 (Toronto symbol SW; TSINetwork Rating: Extra Risk) (604-231-1100; www.sierrawireless.com; Shares outstanding: 32.1 million; Market cap: $689.1 million; No dividends paid) makes digital components that connect products, including smart electricity meters and vehicles, to the Internet....

1 min read

Pat McKeough

Growth Stocks

CGI closes in on buyback target

CGI GROUP INC. $63 (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 304.8 million; Market cap: $19.2 billion; Price-to-sales ratio: 1.8; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) is Canada’s largest provider of computer outsourcing services.

The company helps its clients automate routine functions such as accounting....

1 min read

Pat McKeough

Growth Stocks

Restructuring pays off for MFI

MAPLE LEAF FOODS INC. $28 (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 134.6 million; Market cap: $3.8 billion; Price-to-sales ratio: 1.1; Dividend yield: 1.3%; TSINetwork Rating: Average; www.mapleleaffoods.com) sells fresh and prepared meats under the Maple Leaf and Schneider brands.

Thanks to savings from a restructuring plan, including shifting meat production to newer, more-efficient plants, Maple Leaf earned $31.8 million in the third quarter of 2016....

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.