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

Yum ups forecast ahead of China spinoff

YUM! BRANDS INC. $88 (New York symbol YUM; Aggressive Growth Portfolio; Consumer sector; Shares outstanding: 399.0 million; Market cap: $35.1 billion; Price-to-sales ratio: 2.7; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.yum.com) is the world’s second-largest fast-food company by revenue, after McDonald’s....

1 min read

Pat McKeough

Growth Stocks

Software stocks—1 buy & 1 hold

These two leading software makers continue to aggressively expand their cloud computing operations. While each is enhancing its long-term prospects, we feel Symantec is the better choice right now.

ADOBE SYSTEMS INC. $98 (Nasdaq symbol ADBE; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 499.0 million; Market cap: $48.9 billion; Price-to-sales ratio: 9.2; No dividends paid since June 2005; TSINetwork Rating: Average; www.adobe.com) continues to benefit from rising demand for its online subscription services, particularly the Creative Cloud package of photoediting and desktop-publishing programs....

2 min read

Pat McKeough

Growth Stocks

New chips spur Nvidia’s growth

NVIDIA CORP. $54 (Nasdaq symbol NVDA; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 534.0 million; Market cap: $28.8 billion; Price-to-sales ratio: 5.5; Dividend yield: 0.9%; TSINetwork Rating: Average; www.nvidia .com) is a leading designer of 3D-capable video chips, which make video games run more smoothly and appear more lifelike....

1 min read

Pat McKeough

Growth Stocks

Cisco continues to adapt and grow

CISCO SYSTEMS INC. $31 (Nasdaq symbol CSCO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 5.0 billion; Market cap: $155.0 billion; Price-to-sales ratio: 3.0; Dividend yield 3.4%; TSINetwork Rating: Average; www.cisco.com) is a leading maker of hardware and software that links and manages computer networks....

2 min read

Pat McKeough

Growth Stocks

Updating Monsanto Co. and Agilent Technologies Inc.

MONSANTO CO. $107 (www.monsanto.com) develops and sells technology-based agricultural products, such as genetically modified seeds, to farmers, grain processors and food companies. It also makes weed- and pest-control products. German chemical and pharmaceutical maker Bayer AG recently increased its all-cash takeover offer for Monsanto, to $125.00 a share from $122.00....

1 min read

Pat McKeough

Growth Stocks

L Brands Inc. $71 - New York symbol LB

L BRANDS INC. $71 (New York symbol LB; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 287.5 million; Market cap: $20.4 billion; Price-to-sales ratio: 1.7; Dividend yield: 3.4%; TSINetwork Rating: Average; www.lb.com) owns lingerie chain Victoria’s Secret as well as Bath & Body Works stores....

1 min read

Pat McKeough

Growth Stocks

Nordstrom Inc. $41 - New York symbol JWN

NORDSTROM INC. $41 (New York symbol JWN; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 173.4 million; Market cap: $7.1 billion; Price-to-sales ratio: 0.5; Dividend yield: 3.6%; TSINetwork Rating: Average; www.nordstrom.com) owns and operates 329 stores in the U.S....

1 min read

Pat McKeough

Growth Stocks

Macy’s Inc. $35 - New York symbol M

MACY’S INC. $35 (New York symbol M, Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 308.4 million; Market cap: $10.8 billion; Price-to-sales ratio: 0.4; Dividend yield: 4.3%; TSINetwork Rating: Average; www.macysinc.com) operates 870 Macy’s and Bloomingdale’s department stores and sells goods online....

1 min read

Pat McKeough

Growth Stocks

Symantec Corp. $21 - Nasdaq symbol SYMC

SYMANTEC CORP. $21 (Nasdaq symbol SYMC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 612.3 million; Market cap: $12.9 billion; Price-to-sales ratio: 3.5; Dividend yield: 1.4%; TSINetwork Rating: Average; www.symantec.com) recently completed the sale of its Veritas Technologies subsidiary to the Carlyle Group (Nasdaq symbol CG)....

1 min read

Pat McKeough

Growth Stocks

Adobe Systems Inc. $98 - Nasdaq symbol ADBE

ADOBE SYSTEMS INC. $98 (Nasdaq symbol ADBE; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 499.0 million; Market cap: $48.9 billion; Price-to-sales ratio: 9.2; No dividends paid since June 2005; TSINetwork Rating: Average; www.adobe.com) continues to benefit from rising demand for its online subscription services, particularly the Creative Cloud package of photoediting and desktop-publishing programs....

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.