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

Boeing reports higher loss

BOEING CO. $174 remains a hold. The aircraft maker (New York symbol BA; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 613.9 million; Market cap: $106.8 billion; Price-to-sales ratio: 1.7; Dividend suspended in June 2020; TSINetwork Rating: Extra Risk; www.boeing.com) delivered 57 commercial jetliners in the fourth quarter of 2024, down from 157 a year earlier....

1 min read

Pat McKeough

Growth Stocks

These two look extra risky after big gains

On April 2, 2024, the old General Electric spun off its power equipment business as GE Vernova. Investors received one share of the new firm for every four GE shares they held. Each stock is up sharply since the split, but both are now very expensive in relation to their earnings....

2 min read

Pat McKeough

Growth Stocks

Yum China continues its expansion

YUM CHINA HOLDINGS INC. $45 is a buy for aggressive investors. The company (New York symbol YUMC; Aggressive Growth Portfolio, Consumer Sector; Shares outstanding: 391.0 million; Market cap: $17.6 billion; Price-to-sales ratio: 1.6; Dividend yield: 1.4%; TSINetwork Rating: Average; www.yumchina.com) is China’s largest fast-food operator with over 15,800 outlets, mainly under the KFC and Pizza Hut banners.

Despite slowing economic growth in China, it still expects to reach 20,000 outlets by 2026....

1 min read

Pat McKeough

Growth Stocks

Adding AI should spur their profits

These two software makers are adding artificial intelligence (AI) tools to their programs. That should make them more appealing to their customers and continue to fuel their earnings.

ADOBE INC. $442 is a buy for aggressive investors. The software maker (Nasdaq symbol ADBE; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 435.3 million; Market cap: $192.4 billion; Price-to-sales ratio: 9.3; No dividends paid since June 2005; TSINetwork Rating: Average; www.adobe.com) operates through three main segments: The Digital Media segment’s software includes Adobe Photoshop and Adobe InDesign; the Digital Experience segment provides analytics, social marketing, targeting, media optimization, and cross-channel campaign management software, as well as premium video delivery; and the Publishing segment produces software that lets computer users create, edit and share documents in the popular PDF format.

Adobe continues to benefit from its decision a few years ago to switch to selling programs as ongoing subscriptions instead of one-time purchases....

2 min read

Pat McKeough

Growth Stocks

AI demand will drive Cisco higher

CISCO SYSTEMS INC. $60 is a buy. The company (Nasdaq symbol CSCO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.0 billion; Market cap: $240.0 billion; Price-to-sales ratio: 4.5; Dividend yield: 2.7%; TSINetwork Rating: Average; www.cisco.com) is a leading maker of products that link and manage computer networks.

Cisco also continues to see strong demand for products related to artificial intelligence (AI), as those software programs require faster data transfer speeds and capacity.

Orders related to AI totalled $300 million in its fiscal 2025 first quarter, ended October 26, 2024, and should reach $1.0 billion for the full year.

The stock is up 14% in the past year....

1 min read

Pat McKeough

Growth Stocks

Earnings set to rise in 2025

DANAHER CORP. $224 is still a buy for aggressive investors. The company (New York symbol DHR; Aggressive Growth Portfolio; Manufacturing sector; Shares outstanding 722.3 million; Market cap: $161.8 billion; Price-to-sales ratio: 7.7; Dividend yield: 0.5%; TSINetwork Rating: Above Average; www.danaher.com) makes precision-testing equipment and tools for medical research labs and municipal water utilities.

Danaher often uses acquisitions to enhance its expertise in certain areas....

1 min read

Pat McKeough

Growth Stocks

Here’s our Power Recommendation Portfolio for February 2025

You Can See Our Current Power Recommendations For February 2025 Here.

Understanding our recommendations: Power Buy—These stocks are our top choices for new buying now....

1 min read

Pat McKeough

Growth Stocks

These two fintechs tap key trends

ACI Worldwide and Broadridge have winning business models, especially in today’s expanding financial markets. We believe that will lead to strong growth in future years. Both are hitting new highs, but we still see them as buys.

ACI WORLDWIDE, $52.88, is a buy. The firm (Nasdaq symbol ACIW; TSINetwork Rating: Extra Risk) (Shares outstanding: 104.9 million; Market cap: $5.6 billion; No dividends paid) is the leading software provider for processing transactions by credit cards, debit cards, automated teller machines, point-of-sale terminals and interbank systems....

2 min read

Pat McKeough

Growth Stocks

Shopify buys two important website domains

Shopify offers merchants of all sizes Internet-based software to design, set up and manage e-commerce stores across multiple sales channels. It also handles digital payments and shipping.

SHOPIFY, $153.03, remains a buy. The company (Toronto symbol SHOP; TSINetwork Rating: Extra Risk) (www.shopify.ca; Shares outstanding: 1.2 billion; Market cap: $197.0 billion; No dividends paid) is now reporting its purchase of two important website domains from EMERGE Commerce Ltd....

1 min read

Pat McKeough

Growth Stocks

Niche retailers for Consumer sector growth

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

THE TJX COMPANIES, $122.57, (New York symbol TJX; TSINetwork Rating: Above Average) (tjx.com; Shares o/s: 1.1 billion; Market cap: $138.6 billion; Yield: 1.2%), is a leading off-price retailer of clothing, accessories and home fashions....

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.