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

Firehouse Subs adds Mexico

RESTAURANT BRANDS INTERNATIONAL, $66.09, is a buy. The company (New York symbol QSR; TSINetwork Rating: Average) (www.rbi.com; Shares outstanding: 478.0 million; Market cap: $30.1 billion; Dividend yield: 3.8%) has now entered into an agreement to develop and grow Firehouse Subs in Mexico....

1 min read

Pat McKeough

Growth Stocks

Buy these niche retailers with bright futures

Many traditional bricks-and-mortar retailers continue to struggle against the pandemic onslaught of online shopping and the impact of past inflation. Still, we believe the unique markets of TJX and North West offer you the possibility of strong gains ahead.

NORTH WEST COMPANY, $49.44, is a buy. This retailer (Toronto symbol NWC; TSINetwork Rating: Extra Risk) (www.northwest.ca; Shares outstanding: 47.8 million; Market cap: $2.4 billion; Dividend yield: 3.2%) sells food, and everyday products and services through 227 stores....

2 min read

Pat McKeough

Growth Stocks

We see limited prospects here

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:

DOXIMITY INC., $57.04, (New York symbol DOCS; TSINetwork Rating: Extra Risk) (doximity.com; Shares o/s: 136.9 million; Market cap: $10.7 billion; No dividend) operates the Doximity Network, an online professional network for doctors.

Founded in 2010, the San Francisco-based company’s “LinkedIn for doctors” platform is cloud-based and lets medical professionals collaborate with their colleagues, securely coordinate patient care, conduct virtual patient visits, and stay up to date with the latest medical news and research.

Doximity’s already-high market penetration among medical professionals and advertisers is a plus, but it is also a risk factor for investors....

1 min read

Pat McKeough

Growth Stocks

Be selective to maximize your AI returns

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:

EXPEDIA GROUP INC., $162.46, is a buy. The company (Nasdaq symbol EXPE; TSINetwork Rating: Average) (www.expediagroup.com; Shares outstanding: 142.6 million; Market cap: $20.7 billion; Dividend yield: 1.0%) has now unveiled Expedia Trip Matching....

1 min read

Pat McKeough

Growth Stocks

Disney expands in Abu Dhabi

WALT DISNEY CO., $117.86, is a buy. The company (New York symbol DIS; TSINetwork Rating: Above Average) (Shares o/s: 1.8 billion; Market cap: $211.9 billion; Dividend yield: 0.9%) is now planning a new theme park in Abu Dhabi.

The new Disneyland project will be the company’s seventh global park....

1 min read

Pat McKeough

Growth Stocks

Adobe targets AI upgrades for future growth

Despite record revenue and rising profits, Abobe’s shares have been held back lately by investor concerns about how soon its high R&D spending will begin to pay off in a significant way. Still, we think the company is well positioned with a broad range of software facing limited competition....

2 min read

Pat McKeough

Growth Stocks

Use our updates to enhance your portfolio

TELUS INTERNATIONAL (CDA) INC. $4.96 is now a hold. The company (Toronto symbol TIXT; Aggressive Growth Portfolio; Manufacturing sector; Shares outstanding: 275.0 million; Market cap: $1.4 billion; Price-to-sales ratio: 0.3; No dividend paid; TSINetwork Rating: Average; www.telusdigital.com) operates as Telus Digital Experience....

2 min read

Pat McKeough

Growth Stocks

CGI further expands in Europe

CGI INC. $149 is a buy. The company (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 224.4 million; Market cap: $33.4 billion; Price-to-sales ratio: 2.2; Dividend yield: 0.4%; TSINetwork Rating: Average; www.cgi.com) is Canada’s largest provider of computer outsourcing services.

CGI typically uses acquisitions to enhance its expertise and expand its presence in certain countries.

Under that strategy, it’s now buying Apside for an undisclosed amount....

1 min read

Pat McKeough

Growth Stocks

AtkinsRealis pares down legacy jobs

ATKINSREALIS GROUP INC. $95 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), formerly called SNC-Lavalin Group Inc....

1 min read

Pat McKeough

Growth Stocks

These industrials have low tariff risk

These three leading industrial firms have moved up lately, even though tariffs will likely add to their costs. Those gains reflect the vital products and services these companies sell to niche markets.

All three also have solid long-term prospects and trade at attractive multiples to their earnings....

5 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.