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

Cut your Finance sector risk with these three

We continue to recommend investors diversify their Finance sector holdings beyond the big banks by holding high-quality non-bank firms such as the three below.

Each is a a leader in its niche industry, which cuts your risk. As well, despite recent share price gains, all three still trade at attractive multiples to their earnings.

AMERICAN EXPRESS CO....

5 min read

Pat McKeough

Growth Stocks

Acquisition lifts Agilent

AGILENT TECHNOLOGIES INC. $138 is a buy. The company (New York symbol A; Aggressive Growth Portfolio, Manufacturing sector; Shares outstanding: 285.2 million; Market cap: $39.4 billion; Price-to-sales ratio: 6.0; Dividend yield: 0.7%; TSINetwork Rating: Average; www.agilent.com) makes specialized testing equipment for medical research laboratories and industrial clients.

In September 2024, the firm paid $925 million for Biovectra, a Canadian business that helps drug developers research and manufacture their products.

That purchase helped lift Agilent’s revenue in its fiscal 2024 fourth quarter, ended October 31, 2024, by 0.8%, to $1.70 billion from $1.69 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

AI should continue to spur IBM

Legacy tech firm IBM has gained 47% in the past year, mainly due to investor enthusiasm for its artificial intelligence (AI) software. The company has a long history with AI; in fact, in 2011, IBM’s Watson supercomputer beat human contestants on the Jeopardy game show.

The company is also benefiting as more businesses shift their computing operations to cloud-based platforms.

We feel IBM still has lots of room to move even higher over the next few years....

4 min read

Pat McKeough

Growth Stocks

Here are updates on two of your buys: Gen Digital & Well Health Technologies

Long-time readers know that we aim to keep you informed of important news about the stocks we cover. That means highlighting developments and plans that promise to bolster investor gains. Here are two buys that stand out this month:

GEN DIGITAL INC., $29.44, is a buy. The firm (Nasdaq symbol GEN; TSINetwork Rating: Extra Risk) (gendigital.com; Shares o/s: 616.2 million; Market cap: $18.1 billion; Dividend yield: 1.7%) is the parent company for several security-related consumer brands, including Norton, LifeLock, and Avast, in addition to Avira, AVG, and CCleaner.

Gen continues to attract new customers....

2 min read

Pat McKeough

Growth Stocks

Here’s our Power Recommendation Portfolio for December 2024

You Can See Our Current Power Recommendations For December 2024 Here.

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

1 min read

Pat McKeough

Growth Stocks

These healthcare stalwarts are on the rise

The pandemic presented both of these firms with unique challenges. However, each remained profitable and is well positioned to keep prospering as the economy continues to rebound. Trends now underway—as well as the strong position of these firms in key markets—will power their gains....

2 min read

Pat McKeough

Growth Stocks

Eli Lilly’s outlook is positive despite slower growth

Eli Lilly’s shares fell recently after the company reported its latest results—and that included slowing sales of its anti-obesity drug Zepbound and related diabetes drug Mounjaro. Still, overall sales and profits for Lilly were up strongly.

ELI LILLY & CO., $753.41, is still a buy. The company (New York symbol LLY; TSINetwork Rating: Above Average) (www.lilly.com; Shares o/s: 949.3 million; Market cap: $715.2 billion; Yield: 0.7%) reports that in the three months ended September 30, 2024, its revenue rose 20.4%, to $11.44 billion from $9.50 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

Boost your future gains with these leaders

Garmin is a leader in GPS devices and software for a range of markets. ADT keeps signing up new security customers at the same time it retains more and more of its existing ones. The company’s expanded services help drive that growth. We think both stocks are attractive buys.

GARMIN LTD., $205.59, is a buy. The company (Nasdaq symbol GRMN; TSINetwork Rating: Extra Risk) (Shares outstanding: 192.0 million; Market cap: $39.5 billion; Dividend yield: 1.5%) makes GPS devices and software for five different markets: fitness, outdoors, auto, aviation, and marine.

Reaching new highs, the stock is up over 26% since the end of October 2024....

2 min read

Pat McKeough

Growth Stocks

This stock offers limited prospects

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:

CANADA GOOSE HOLDINGS, $13.03, (Toronto symbol GOOS; TSINetwork Rating: Extra Risk) (www.canadagoose.com; Shares outstanding: 96.7 million; Market cap: $1.3 million; No dividends paid) is a Toronto-based luxury apparel manufacturer known for its iconic winter jackets....

1 min read

Pat McKeough

Growth Stocks

Use these stocks to power your AI returns

Artificial intelligence (AI) is an example of an investment idea that could boost your investment returns, or, more likely, end up costing you money. All in all, we think that the biggest, surest gains from AI will come from investing in established businesses that are already profitable and growing, and that can gain all the more by applying AI to their operations.

Here are two companies that are already profitably taking advantage of AI, and they should be among the leaders in the push to extend AI’s use:

ATS CORP., $41.34, is a buy. The company (Toronto symbol ATS; TSINetwork Rating: Average) (www.atsautomation.com; Shares outstanding: 97.9 million; Market cap: $4.1 billion; No dividend paid) provides some of the world’s top manufacturers with factory automation solutions.Founded in 1978, it has over 60 manufacturing facilities and 80 offices in North America, Europe, and Asia.

In July 2023, ATS acquired Yazzoom BV....

1 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.