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

R&D powers these two U.S. tech leaders

PagerDuty and Twilio were well positioned to gain during the pandemic, but since early 2021 they have dropped along with many other tech/platform stocks. Still, we think both have room to rebound as they continue to experience strong and growing demand. Both are buys.

PAGERDUTY INC., $15.646, is a buy. The company (New York symbol PD; TSINetwork Rating: Extra Risk) (pagerduty.com; Shares o/s: 91.1 million; Market cap: $1.4 billion; No divd.) operates a platform that collects real-time data from software systems and devices and then notifies its IT customers of incidents that could harm operations.

For the three months ended January 31, 2025, revenue rose 9.3%, to $121.4 million from $111.1 million a year earlier....

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:
COREWEAVE INC., $40.78, (Nasdaq symbol CRWV; TSI Rating: Extra Risk) (Shares outstanding: 346.0 million; Market cap: $4.8 billion; No dividends paid) rents out AI servers....

1 min read

Pat McKeough

Growth Stocks

ResMed debuts a home apnea test

RESMED INC., $213.97, is a buy. The company’s (New York symbol RMD; TSINetwork Rating: Average)(www.resmed.com; Shares outstanding: 146.9 million; Market cap: $31.4 billion; Dividend yield: 1.0%) home sleep apnea test, NightOwl, is now available across the U.S....

1 min read

Pat McKeough

Growth Stocks

Corteva taps rising agricultural demand

Corteva shares offer investors a number of pluses: Not only is the company at the forefront of key agricultural trends, the stock is a spinoff. Over the years, we’ve found that spinoffs are about as close as you can get to a sure thing in investing. It’s one key reason why we think there are significant gains ahead for existing Corteva investors and for new ones....

2 min read

Pat McKeough

Growth Stocks

Acquisition lets Alcon better meet rising demand

Alcon taps into long-term key trends—an aging population and greater wealth globally. In addition, technological changes make it hard for new entrants to gain significant market share. This all bodes well for its share price and investor returns.

ALCON, $91.42, is a #1 Power Buy for 2025. The firm (New York symbol ALC; TSINetwork Rating: Average)(www.alcon.com; Shares outstanding: 499.7 million; Market cap: $46.1 billion; Dividend yield 0.4%) has agreed to acquire Lensar Inc....

1 min read

Pat McKeough

Growth Stocks

Savvy move for SHOP

SHOPIFY, $117.37, remains a buy. The company (Toronto symbol SHOP; TSINetwork Rating: Extra Risk) (www.shopify.ca; Shares o/s: 1.2 billion; Market cap: $152.0 billion; No divds.) recently transfered its U.S. stock listing from the New York Stock Exchange to the Nasdaq Global Select Market....

1 min read

Pat McKeough

Growth Stocks

Demand for CGI’s expertise remains strong

CGI helps businesses improve their efficiency. That suggests it stands to gain as those clients seek ways to reduce the impact of any economic uncertainty. Moreover, as a service provider with offices in many countries, the company itself has little tariff risk.

CGI INC....

2 min read

Pat McKeough

Growth Stocks

CAE has the better outlook

Both Bombardier and CAE remain vulnerable to changing tariff policies in the U.S. and other countries. Still, we prefer CAE for new buying given its broader geographic operations and higher revenue from services.

BOMBARDIER INC. is a hold. The company (Toronto symbols BBD.A $86 and BBD.B $86; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 98.4 million; Market cap: $8.5 billion; Price-to-sales ratio: 0.6; Dividend suspended in February 2015; TSINetwork Rating: Speculative; www.bombardier.com) now focuses solely on making private luxury and business jet planes following the January 2021 sale of its passenger railcar business to France’s Alstom SA.

The company has five production facilities: two in Canada (Toronto and Montreal); two in the U.S....

2 min read

Pat McKeough

Growth Stocks

Cut your tariff risk with service providers

U.S. tariffs apply only to goods, not services. As a result, the share prices of these three service providers from our Aggressive Growth Portfolio have held up better than manufacturing companies.

For your new buying, we prefer Stantec and Colliers, particularly as the current economic turmoil could make it easier for them to keep buying smaller competitors at possibly lower prices....

5 min read

Pat McKeough

Growth Stocks

Stay on top of your stocks with our updates

TD BANK, $85.82, is a buy for patient, income-seeking investors. The lender (Toronto symbol TD; Shares outstanding: 1.8 billion; Market cap: $148.7 billion; TSINetwork Rating: Above Average; Dividend yield: 4.8%; www.td.com) recently settled charges over lapses in the anti-money laundering processes at its U.S....

2 min read

Pat McKeough

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Investors Association of Canada
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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.