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.

You Can See Our WSSF Income-Seeking Portfolio For June 2025 Here.

This month, we are updating our WSSF Portfolio for Income-Seeking Investors.

This portfolio is a good starting point for investors who need income....

1 min read

Pat McKeough

Growth Stocks

Updating your Income stocks: Quaker Chemical, McCormick & Co and 3M

QUAKER CHEMICAL CORP. $110 (www.quakerhoughton.com) remains a buy. The company makes specialty chemicals and lubricants for industrial uses. Quaker recently acquired two firms that make surface treatment chemicals for manufacturers: Japan’s Dipsol Chemicals Co., Ltd., purchased for $187.0 million, and U.K.-based Natech Ltd., for $6.5 million....

1 min read

Pat McKeough

Growth Stocks

This spinoff star continues to shine

Since its spinoff from RTX in 2020, elevator maker Otis has seen its shares jump more than 115%. While tariffs are adding to RTX’s costs and hurting new orders, rising demand for maintenance and other services (which now supply over 60% of its revenue) should continue to push the stock higher.

OTIS WORLDWIDE CORP....

2 min read

Pat McKeough

Growth Stocks

Idexx’s high p/e makes us wary

IDEXX LABORATORIES INC. $514 is a hold. The company (Nasdaq symbol IDXX; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 80.4 million; Market cap: $41.3 billion; Price-to-sales ratio: 10.9; No dividends paid; TSINetwork Rating: Average; www.idexx.com) makes equipment that veterinarians use to detect disease in animals.

In the first quarter of 2025, Idexx’s sales rose 3.6%, to $998.4 million from $964.1 million a year earlier....

1 min read

Pat McKeough

Growth Stocks

Use these updates to enhance your returns

BECTON DICKINSON & CO. $173 is a buy. The medical device maker (New York symbol BDX; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 286.6 million; Market cap: $49.6 billion; Price-to-sales ratio: 2.4; Dividend yield: 2.4%; TSINetwork Rating: Above Average; www.bd.com) acquired the Critical Care product group of Edwards Lifesciences Corp....

2 min read

Pat McKeough

Growth Stocks

Procter can handle tariffs

PROCTER & GAMBLE CO. $167 is a buy. The consumer products giant (New York symbol PG; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 2.4 billion; Market cap: $400.8 billion; Price-to-sales ratio: 4.9; Dividend yield: 2.5%; TSINetwork Rating: Above Average; www.pg.com) now expects tariffs will cut its sales growth for the fiscal year ending June 30, 2025, to 2% from its earlier forecast for a 3% to 5% increase....

1 min read

Pat McKeough

Growth Stocks

New products should spur Embecta

EMBECTA CORP. $11 is still a buy for long-term gains. The company (Nasdaq symbol EMBC; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 58.4 million; Market cap: $642.4 million; Price-to-sales ratio: 0.6; Dividend yield: 5.5%; TSINetwork Rating: Average; www.embecta.com) makes insulin syringes, insulin pens and related products for the treatment of diabetes.

Embecta is also expanding beyond diabetes products....

1 min read

Pat McKeough

Growth Stocks

The p/e for one of these is more valuable

Since their spinoff from the old General Electric (now operating as GE Aerospace), GE Vernova has soared 245%, while GE HealthCare is up 27%. We like the prospects for both, but prefer GE HealthCare for your new buying.

GE VERNOVA INC. $485 is a hold. The company (New York symbol GEV; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 272.9 million; Market cap: $132.4 billion; Price-to-sales ratio: 3.7; Dividend yield: 0.2%; TSINetwork Rating: Average; www.gevernova.com) makes turbines and related equipment for gas-fired and nuclear power plants, plus equipment for wind farms....

2 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.