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

Updating Weight Watchers International, Russel Metals and Sierra Wireless

WEIGHT WATCHERS INTERNATIONAL $23.51 (New York symbol WTW; TSINetwork Rating: Extra Risk) (212-589-2700; www.weightwatchers.com; Shares outstanding: 64.0 million; Market cap: $1.6 billion; No dividends paid) continues to increase its membership: the number of active subscribers stood at 3.6 million on April 1, 2017....

2 min read

Pat McKeough

Growth Stocks

Aimia holders overreact

AIMIA INC. $3.06 (Toronto symbol AIM; TSINetwork Rating: Extra Risk) (514-897-6800; www.aimia.com; Shares o/s: 152.3 million; Market cap: $484.3 million; Dividend yield: 26.1%) is down 66% since Air Canada said it would launch its own loyalty program in 2020....

1 min read

Pat McKeough

Growth Stocks

Buy Goodyear, hold on to ATN

GOODYEAR TIRE & RUBBER CO. $32.26 (Nasdaq symbol GT; TSINetwork Rating: Average) (330-796-2122; www.goodyear.com; Shares outstanding: 251.8 million; Market cap: $8.5 billion; Dividend yield: 1.2%) is one of the world’s largest tire makers. It has 49 production plants in 22 countries worldwide.

In the three months ended March 31, 2017, Goodyear earned $189 million, excluding one-time items....

2 min read

Pat McKeough

Growth Stocks

IBM maintains its long-term appeal

Dear client:

IBM continues to increase revenue from its new businesses such as cloud computing (the storage of data files on remote servers using the Internet). The company expects those sales to eventually offset falling revenue for its traditional computer consulting and mainframe operations....

4 min read

Pat McKeough

Growth Stocks

Updating Fair Isaac Corp., Tennant Co. and Sony Corp. ADRs

FAIR ISAAC CORP. $134 (New York symbol FICO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 31.1 million; Market cap: $4.2 billion; Price-to-sales ratio: 4.6; Dividend yield: 0.1%; TSINetwork Rating: Average; www.fico.com) makes FICO Scores....

2 min read

Pat McKeough

Growth Stocks

Updating Cisco Systems Inc., L Brands Inc. and Macy’s Inc.

CISCO SYSTEMS INC. $33 (www.cisco.com) makes hardware and software for linking and managing computer networks. The company has completed its acquisition of AppDynamics Inc. That San Franciscobased firm makes software that helps large organizations monitors the performance of their websites and mobile apps....

1 min read

Pat McKeough

Growth Stocks

Long-time pick up 966.7%

C.R. BARD INC. $304 (New York symbol BCR; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 72.3 million; Market cap: $22.0 billion; Price-to-sales ratio: 5.9; Dividend yield: 0.3%; TSINetwork Rating: Above Average; www.crbard.com) makes over 15,000 medical devices in four main areas: stents, catheters and other vascular products; oncology products that detect and treat various types of cancer; urology goods such as drainage and incontinence devices; and surgical tools.

The stock jumped 20% in April 2017 after Bard accepted a takeover offer from rival medical device maker Becton Dickinson & Co....

1 min read

Pat McKeough

Growth Stocks

Keysight completes big acquisition

KEYSIGHT TECHNOLOGIES INC. $38 (New York symbol KEYS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 183.0 million; Market cap: $7.0 billion; Price-to-sales ratio: 2.4; No dividends paid; TSINetwork Rating: Average; www.keysight.com) makes devices for testing electronic equipment.

In April 2017, the company paid $1.6 billion for California-based Ixia....

1 min read

Pat McKeough

Growth Stocks

We picked another!

Once again, one of our buys has attracted a highly profitable acquisition bid—just the latest of many big takeover gains for us over the last few years.

MENTOR GRAPHICS (formerly symbol MENT on Nasdaq) makes systems to improve the design of electronic products and speed up their development.

Siemens AG of Germany has now completed its all-cash takeover of Mentor in a friendly $37.25-a-share bid....

1 min read

Pat McKeough

Growth Stocks

WestJet gets an IT pro

WESTJET AIRLINES $23.12 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1-877493-7853; www.westjet.com; Shares outstanding: 123.3 million; Market cap: $2.7 billion; Dividend yield: 2.4%) has hired airline industry information technology veteran Craig Maccubbin as its chief information officer.

For the past four years, Maccubbin was chief technology officer at major 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.