Growth Stocks
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
Fair Isaac and ACI Worldwide have winning business models, especially in today’s expanding financial markets. We believe that will lead to strong growth in future years. Both are buys.
You should remain wary of stocks that attract broker/media attention because of high-profile products or services, and their business models. Here’s a closer look at one stock with risks that prospective investors should take into consideration:
Artificial intelligence (AI) is an example of an investment idea that could boost your investment returns, or, more likely, end up costing you money. All in all, we think that the biggest, surest gains from AI will come from investing in established businesses that are already profitable and growing, and that can gain all the more by applying AI to their operations.
Here are two companies that are already profitably taking advantage of AI, and they should be among the leaders in the push to extend AI’s use:
Here are two companies that are already profitably taking advantage of AI, and they should be among the leaders in the push to extend AI’s use:
Pandemic lockdowns provided Garmin with a big boost, but the stock has since gone on to hit today’s all-time highs. Going forward, we still like its prospects for growth despite its competitive markets. We think this Power Buy is poised to move even higher for you.
Amazon is the largest e-commerce company, but its grocery business hasn’t grown as fast as some rivals’. For example, Walmart’s larger online grocery business now offers same-day deliver to 90% of the U.S.
ALCON, $81.04, remains a #1 Power Buy for 2025. The firm (New York symbol ALC; TSINetwork Rating: Average) (www.alcon.com; Shares outstanding: 499.7 million; Market cap: $40.8 billion; Dividend yield 0.4%) has lowered its outlook for 2025. That’s mostly due to the continuing drag from U.S. tariffs.
The Swiss-American eye-care company generates almost half of its revenue in the U.S.—and U.S. tariffs on goods from Switzerland currently stand at a very high 39%.
The Swiss-American eye-care company generates almost half of its revenue in the U.S.—and U.S. tariffs on goods from Switzerland currently stand at a very high 39%.
There’s no question that the world’s aging population will continue to spend more on medical services for years to come. Medical device makers are well positioned to capture a share of that increased spending. We continue to see attractive investment opportunities among the top industry device firms. That includes Boston Scientific, whose diversification across multiple high-growth product categories offers investors a bright future. By the way, the company holds the leading position in most of those categories. Boston Scientific is a Power Buy.
Colliers is up 12% since the start of 2025, partly because recent acquisitions are fuelling its earnings. While using acquisitions to grow add risk, the company targets smaller firms that are easier to absorb. Despite its recent rise, the stock remains attractive in relation to its earnings, particularly as it gets more that 70% of its revenue from long-term service contracts.
RESTAURANT BRANDS INTERNATIONAL INC. $90 is a buy for aggressive investors. The fast-food operator (Toronto symbol QSR, Aggressive Growth Portfolio, Consumer sector; Shares o/s: 452.0 million; Market cap: $43.4 billion; Price-to-sales ratio: 3.7; Dividend yield: 3.7%; TSINetwork Rating: Average; www.rbi.com) has 32,229 fast-food outlets in over 100 countries. Its top banners are Burger King, Tim Hortons (coffee and donuts), Popeyes (fried chicken) and Firehouse Subs.
ATKINSREALIS GROUP INC. $97 is a hold. The engineering company (Toronto symbol ATRL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 174.8 million; Market cap: $16.6 billion; Price-to-sales ratio: 1.7; Dividend yield: 0.1%; TSINetwork Rating: Average; www.atkinsrealis.com) aims to expand its nuclear division, which designs and services nuclear power facilities. It now supplies 20% of its total revenue.
AtkinsRealis is in a strong position to win new contracts in the U.S., particularly as the Trump administration wants to quadruple that country’s nuclear atomic energy capacity over the next 25 years.
AtkinsRealis is in a strong position to win new contracts in the U.S., particularly as the Trump administration wants to quadruple that country’s nuclear atomic energy capacity over the next 25 years.