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

FirstService still has a bright outlook

Real estate services provider FirstService hit a record high of $290 in September 2025, but has since declined 26%. That’s partly because a lack of severe weather events has hurt demand for its roofing and building restoration services. We still like the company’s long-term prospects given recent acquisitions should spur its earnings.

2 min read

Pat McKeough

Growth Stocks

These three are hard to replace

U.S. tariffs on Canadian imports, including steel, aluminum, and crude oil, have raised risks for these companies—all three depend heavily on the U.S. for revenue. Uncertainty over the future of the U.S.-Mexico-Canada Agreement (USMCA) only compounds those concerns. Even so, we believe all three remain compelling long-term buys, as each provide essential products and services that are difficult for customers to substitute.

5 min read

Pat McKeough

Growth Stocks

Loblaw adds budget offering

LOBLAW COMPANIES, $67.00, is a buy. The retailer (Toronto symbol L; Shares o/s: 1.2 billion; Market cap: $74.3 billion; TSINetwork Rating: Above Average; Yield: 0.8%; loblaw.ca) operates 1,160 supermarkets under several banners, including Loblaws, Zehrs, Provigo, Real Canadian Superstore and No Frills. It also owns the Shoppers Drug Mart chain, which has 1,363 drugstores across Canada.

1 min read

Pat McKeough

Growth Stocks

Two top buys for safety-conscious gains

CPKC and Metro are leading competitors in their respective markets. You can expect that to lower your risk going forward despite continuing economic uncertainty. We see both stocks as buys.
CANADIAN PACIFIC KANSAS CITY, $108.71, is a buy. The company (Toronto symbol CP; shares o/s: 897.7 million; Market cap: $92.1 billion; Rating: Above Average; Yield: 0.8%) took its current form in 2023 when it acquired U.S.-based Kansas City Southern (KCS) for $31 billion U.S.

2 min read

Pat McKeough

Growth Stocks

Updating your Aggressive stocks: NCR Atleos, NCR Voyix and Restaurant Brands

NCR ATLEOS CORP. $36 (www.ncratleos.com) is a hold. On October 16, 2023, the old NCR Corp. (New York symbol NCR) split itself into two separate firms. One (NCR Atleos) focuses on automated teller machines; the other one (NCR Voyix, see below) caters to digital commerce businesses. At the time of the split, investors received one share of NCR Atleos for every two NCR shares they held. The NCR Atleos shares are now up 70% since the split, partly due to strong demand for ATM maintenance and software updates. However, the market’s ongoing shift from ATMs to online banking adds risk.

1 min read

Pat McKeough

Growth Stocks

Get AI exposure with much less risk

A solid way to gain exposure to the fast-growing artificial intelligence industry is through established technology companies such as Cisco Systems. Its networking products are essential to the development and operation of new AI services and software. In addition, Cisco’s own software business provides steady, recurring revenue, which helps to reduce its risk. CISCO SYSTEMS INC. $79 is a buy. The company (Nasdaq symbol CSCO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.0 billion; Market cap: $316.0 billion; Price-to-sales ratio: 5.5; Dividend yield: 2.1%; TSINetwork Rating: Average; www.cisco.com) is a leading maker of products that link and manage computer networks.

2 min read

Pat McKeough

Growth Stocks

Use these updates to enhance your returns

ADOBE INC. $300 remains a buy for aggressive investors. The software company (Nasdaq symbol ADBE; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 410.5 million; Market cap: $123.2 billion; Price-to-sales ratio: 5.3; No dividends paid since June 2005; TSINetwork Rating: Average; www.adobe.com) makes programs that let computer users create, edit and share documents in the popular PDF format. It also makes a variety of electronic-publishing programs.

2 min read

Pat McKeough

Growth Stocks

Becton expands its syringe production

BECTON DICKINSON & CO. $202 is a buy. The medical device maker (New York symbol BDX; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 285.2 million; Market cap: $57.6 billion; Price-to-sales ratio: 2.5; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.bd.com) plans to expand glass syringe production at its Columbus, Nebraska, facility. That positions the company to benefit from rising demand for GLP-1 weight-loss drugs and other injectable medicines. Becton expects to complete the $110 million project by mid-2026.

1 min read

Pat McKeough

Growth Stocks

Idexx’s high p/e is a risk factor

IDEXX LABORATORIES INC. $688 is a hold. The company (Nasdaq symbol IDXX; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 80.4 million; Market cap: $55.3 billion; Price-to-sales ratio: 13.6; No dividends paid; TSINetwork Rating: Average; www.idexx.com) makes equipment that veterinarians use to detect disease in animals. Back in 2024, Idexx launched its inVue Dx analyzer, which delivers blood test results in under 10 minutes. The device is in strong demand, and management raised its 2025 delivery target to 5,500 units from 4,500.

1 min read

Pat McKeough

Growth Stocks

Two stocks that tap into key growth trends

These two makers of testing equipment are doing a good job tapping into key trends. Agilent is seeing strong demand from developers of new GLP-1 weight loss drugs, while demand for new chips to run artificial intelligence programs is driving demand for Keysight’s chip-testing gear. We still see both as aggressive buys. AGILENT TECHNOLOGIES INC. $134 is a buy. The company (New York symbol A; Aggressive Growth Portfolio, Manufacturing sector; Shares outstanding: 283.5 million; Market cap: $38.0 billion; Price-to-sales ratio: 5.6; Dividend yield: 0.8%; TSINetwork Rating: Average; www.agilent.com) makes specialized testing equipment for medical research laboratories and industrial clients.

2 min read

Pat McKeough

Testimonials

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Chuck Chakrapani, PhD
Investors Association of Canada
The older I get the better dividends look. For retirees and would-be retirees who want to sleep at night, I can’t think of a better source of information on reliable growing dividend income than Pat McKeough’s newsletter, Dividend Advisor.

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Financial Post Columnist
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I appreciate the 25 years of above market returns I received by following your advice. at least 95% of my investment decisions were based on TSI recommendations.

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Subscriber since 1996. Inner Circle Member Since 2006
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Inner Circle Pro subscriber

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.