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 your Conservative stocks: Sherwin-Williams, Philips Electronics and ABB

SHERWIN-WILLIAMS CO. $328 (www.sherwin-williams.com) is a hold. The company is a leading maker of paints and varnishes. In the three months ended September 30, 2025, Sherwin’s sales rose 3.2%, to $6.36 billion from $6.16 billion a year earlier. That’s due to higher selling prices at its retail outlets and the opening of new stores, as well as higher demand from industrial customers. Earnings before unusual items improved 6.5%, to $3.59 a share from $3.37, due to cost controls.

1 min read

Pat McKeough

Growth Stocks

Recent 3M moves cut risk, brighten outlook

3M’s shares have gained over 25% in the past year. That’s mainly due to its wide-ranging cost-cutting plan, which has helped offset the impact of tariffs. The recent settlement of several lawsuits has also lowered its risk.

2 min read

Pat McKeough

Growth Stocks

Shutdown hurt Motorola

MOTOROLA SOLUTIONS INC. $374 is a buy. The company (New York symbol MSI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 166.6 million; Market cap: $62.3 billion; Price-to-sales ratio: 5.5; Dividend yield: 1.3%; TSINetwork Rating: Average; www.motorolasolutions.com) makes communications equipment such as two-way radios for police and fire vehicles, as well as high-definition surveillance systems.

The stock has dropped 11% in the past six months. That’s mainly because the recent U.S. federal government shutdown slowed some defence and security contracts.

1 min read

Pat McKeough

Growth Stocks

Geopolitical tensions make us wary

APPLE INC. $272 is a hold. The company (Nasdaq symbol AAPL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 14.8 billion; Market cap: $4.0 trillion; Price-to-sales ratio: 9.9; Dividend yield: 0.4%; TSINetwork Rating: Average; www.apple.com) gets about half of its revenue from iPhone sales. The other half comes from sales of its Mac computers, iPad tablets and other products and services.

Apple continues to see strong demand for its latest iPhone model, as well as online services such as music streaming.

1 min read

Pat McKeough

Growth Stocks

Sony spins off financial division

SONY GROUP CORP. ADRs $26 is a hold. The Japanese conglomerate (New York symbol SONY; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 6.0 billion; Market cap: $156.0 billion; Price-to-sales ratio: 1.9; Dividend yield: 0.6%; TSINetwork Rating: Average; www.sony.com) has completed the spinoff of its financing business as a separate firm called Sony Financial Group Inc. Those operations provide a range of banking, life insurance and other services in Japan. Investors received one new spinoff share for every share of Sony they held (each American Depositary Receipt represents one Sony share). The parent still holds 16.4% of this business.

1 min read

Pat McKeough

Growth Stocks

These three buys are poised for a rebound

All three of the following consumer sector stocks have moved down lately as rising costs for ingredients have hurt their earnings. The uncertain economy is also prompting consumers to cut their spending.

In response, these three firms are cutting costs and improving the quality of their products. That should push their stock prices higher in 2026 and beyond.

5 min read

Pat McKeough

Growth Stocks

RTX can keep moving higher

The shares of RTX have gained more than 50% since the start of 2025 and recently hit a new all-time high of $182.28.

That big jump is mainly due to rising air travel volumes and a slowdown in the production of new aircraft. As a result, airlines are spending more on the company’s replacement parts and maintenance services. RTX also continues to see strong demand for its Patriot missiles and other military hardware due to the Russia-Ukraine war and other ongoing conflicts.

We feel the stock can move even higher, given its large order backlog and strong position in its main markets. Investors will also continue to benefit from regular dividend increases and share buybacks.

4 min read

Pat McKeough

Growth Stocks

Strong backlog supports Stantec

STANTEC INC. $131 is a buy. This engineering firm (Toronto symbol STN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 114.1 million; Market cap: $17.1 billion; Price-to-sales ratio: 1.9; Dividend yield: 0.7%; TSINetwork Rating: Extra Risk; www.stantec.com) is a leading seller of consulting, project-delivery, design and technology services. The U.S. provides 52% of its revenue, followed by Canada (24%) and other countries (24%).

1 min read

Pat McKeough

Growth Stocks

Use these updates to enhance your portfolio

SAPUTO INC. $40 is a hold. The company (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 418.3 million; Market cap: $16.7 billion; Price-to-sales ratio: 0.8; Dividend yield: 2.0%; TSINetwork Rating: Average; www.saputo.com) is Canada’s largest producer of dairy products. It also operates dairies in the U.S., Australia, the U.K. and Argentina.

2 min read

Pat McKeough

Growth Stocks

CAE stock is poised for a comeback

CAE is down 7% since the start of the year. Still, the company is in a strong position to profit from two long-term trends. First, a large number of airline pilots will retire over the next few years. Second, Canada and other NATO countries have pledged to increase defence spending.

These developments should spur more demand for the company’s pilot training services and flight simulators.

4 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.