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 ATN International, Amerigo Resources and Goodyear Tire & Rubber

ATN INTERNATIONAL $65.79 (Nasdaq symbol ATNI; TSINetwork Rating: Speculative) (340-777-8000; www.atni.com; Shares outstanding: 16.2 million; Market cap: $1.1 billion; Dividend yield: 2.1%) operates in two main areas: its communications business provides fixed and wireless voice, data and video services in Bermuda, the Caribbean and underserved markets in the U.S.; and its renewables business generates solar power in a number of U.S....

2 min read

Pat McKeough

Growth Stocks

Amazon starts streaming

AMAZON.COM $817.69 (Nasdaq symbol AMZN; TSINetwork Rating: Average) (206-266 -1000; www.amazon.com; Shares outstanding: 474.0 million; Market cap: $387.6 billion; No dividends paid) has launched its own music-streaming service. This puts it in direct competition with Spotify, Pandora, Google Play Music, Apple Music and others.

The new service, called Amazon Music Unlimited, is available for just $3.99 per month for those subscribers who own voicecontrolled Amazon Echo speakers....

1 min read

Pat McKeough

Growth Stocks

Buy Aimia, hold on to Reitmans

REITMANS (CANADA) LTD. $6.52 (Toronto symbol RET.A; TSINetwork Rating: Extra Risk) (514-384- 1140; www.reitmans.com; Shares outstanding: 64.6 million; Market cap: $412.6 million; Dividend yield: 3.1%) owns 719 women’s clothing stores across Canada.

Those outlets are divided among several brands: Reitmans (307 stores), Penningtons (130), Addition Elle (103), RW & Co....

2 min read

Pat McKeough

Growth Stocks

ACI adds key Mideast client

ACI WORLDWIDE $20.04 (Nasdaq symbol ACIW; TSINetwork Rating: Speculative) (402- 390-7600; www.aciworldwide.com; Shares outstanding: 117.2 million; Market cap: $2.3 billion; No dividends paid) continues to sign contracts with a wide range of clients.

They now include HyperPay, a fastgrowing provider of payment services in the Middle East and North Africa.

HyperPay will use ACI’s UP eCommerce Payments system, and its ACE Red Shield fraud prevention software, for its rapidly growing business....

1 min read

Pat McKeough

Growth Stocks

New market for FICO

FAIR ISAAC $122.79 (New York symbol FICO; TSINetwork Rating: Average) (415-472-2211; www.fairisaac.com; Shares outstanding: 30.9 million; Market cap: $3.8 billion; Dividend yield: 0.1%) is best known for its FICO Scores software, which lets lenders make better decisions about customer creditworthiness....

1 min read

Pat McKeough

Growth Stocks

Updating Loblaw Companies Ltd., Teck Resources Ltd. and Torstar Corp.

LOBLAW COMPANIES LTD. $66 (Toronto symbol L; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 404.5 million; Market cap: $26.7 billion; Price-to-sales ratio: 0.6; Dividend yield: 1.6%; TSI Network Rating: Above Average; www.loblaw.ca) recently agreed to acquire QHR Corp....

2 min read

Pat McKeough

Growth Stocks

Hold off on new buying

These three Consumer sector companies continue to benefit from improving efficiency. That has spurred their earnings and stock prices. We still like the outlook for all of them, but they’re now expensive in relation to their immediate prospects.

RESTAURANT BRANDS INTERNATIONAL INC....

3 min read

Pat McKeough

Growth Stocks

Bombardier’s rail division wins new order

BOMBARDIER INC. (Toronto symbols BBD.A $1.96 and BBD.B $1.77; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.7 billion; Market cap: $3.0 billion; Price-to-sales ratio: 0.2; Dividend suspended in February 2015; TSINetwork Rating: Speculative; www.bombardier.com) has won a contract to supply the city of Gothenburg, Sweden with 40 streetcars....

1 min read

Pat McKeough

Growth Stocks

CGI’s alliances pay off

CGI GROUP INC. $62 (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 303.9 million; Market cap: $18.8 billion; Priceto- sales ratio: 1.8; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) is Canada’s largest provider of computer-outsourcing services....

1 min read

Pat McKeough

Growth Stocks

Updating Baxter International Inc. and Stanley Black & Decker Inc.

BAXTER INTERNATIONAL INC. $48 (www.baxter.com) makes a variety of medical devices. In July 2015, it spun off its pharmaceutical business Baxalta as a separate company. It later sold its remaining shares in Baxalta for a $1.1 billion gain. The company has used the cash from the sale to pay down its debt; as of June 30, 2016, its long-term debt was $3.2 billion, or a low 13% of its $25.3 billion market cap....

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.