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

Chipotle appoints a new CEO

CHIPOTLE MEXICAN GRILL, $58.88, is a buy. The company (New York symbol CMG; TSINetwork Rating: Extra Risk) (Shares outstanding: 1.4 billion; Market cap: $80.2 billion; No dividends paid) recently lost CEO Brian Niccol to Starbucks, where he has taken over as its CEO.

Meanwhile, Chipotle has just announced its new CEO as Scott Boatwright....

1 min read

Pat McKeough

Growth Stocks

Texas Roadhouse keeps prospering

During the pandemic, Texas Roadhouse implemented savvy strategies to support its businesses. Now, as the economy has normalized, we think it’s very well-positioned to capitalize on its popular offerings to keep attracting dine-in, pick-up and takeout customers. We recommend this stock as a Power Buy.

TEXAS ROADHOUSE, $193.41, is a buy. The company (Nasdaq symbol TXRH; TSINetwork Rating: Extra Risk) (texasroadhouse.com; Shares outstanding: 66.7 million; Market cap: $12.9 billion; Dividend yield: 1.3%) is a full-service, casual-dining restaurant chain with 772 locations spread across 49 U.S....

2 min read

Pat McKeough

Growth Stocks

Buffett likes Domino’s

DOMINO’S PIZZA, $438.97 (New York symbol DPZ; TSINetwork Rating: Average) (www.dominos.com; Shares outstanding: 34.5 million; Market cap: $15.2 billion; Dividend yield: 1.4%), has a new, prominent investor.

Warren Buffett’s Berkshire Hathaway added Domino’s Pizza to its stock portfolio last quarter....

1 min read

Pat McKeough

Growth Stocks

Fair Isaac can better its 120% return

Shares of Fair Isaac have risen 120.0% for our subscribers over the last year—and a whopping 16,882.4% since we first recommended the stock in our February 1999 issue at $13.60 a share (split adjusted)! That said, we think the shares have room to move much higher.

The company plays a key role for lenders making mortgage underwriting decisions....

2 min read

Pat McKeough

Growth Stocks

AI should take Thomson’s shares higher

Thomson Reuters has soared 160% for our subscribers in the past five years. That’s mainly because it sold its financial information business and used the proceeds to reward investors. The company is now adding artificial intelligence features to its legal and tax information products, which sets its up for even more gains in the next few years.

THOMSON REUTERS CORP....

2 min read

Pat McKeough

Growth Stocks

Acquisition lifts RBI’s sales

RESTAURANT BRANDS INTERNATIONAL INC. $95 is a buy for aggressive investors. The fast-food operator (Toronto symbol QSR, Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 450.8 million; Market cap: $42.8 billion; Price-to-sales ratio: 3.9; Dividend yield: 3.4%; TSINetwork Rating: Average; www.rbi.com) has 31,525 outlets in over 100 countries, comprised of Burger King, Tim Hortons (coffee and donuts), Popeyes Louisiana Kitchen (fried chicken) and Firehouse Subs locations.

In May 2024, the company acquired the remaining 85% of Carrols Restaurant Group (Nasdaq symbol TAST) that it didn’t already own for $974 million, which included $431 million of Carrols debt (all amounts except share price and market cap in U.S....

1 min read

Pat McKeough

Growth Stocks

Here are key updates on your holdings

SUNCOR ENERGY INC. $55 is a buy. Canada’s largest integrated oil producer (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.3 billion; Market cap: $71.5 billion; Price-to-sales ratio: 1.3: Dividend yield: 4.1%; TSINetwork Rating: Average; www.suncor.com) is now raising your quarterly dividend by 4.6%....

2 min read

Pat McKeough

Growth Stocks

CAE winds down legacy deals

CAE INC. $30 is still a buy. The company (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 318.6 million; Market cap: $9.6 billion; Price-to-sales ratio: 2.0; Dividend suspended in March 2020; TSINetwork Rating: Average; www.cae.com) is a leading maker of flight simulators for commercial and military aircraft....

1 min read

Pat McKeough

Growth Stocks

Metro gains on improved efficiency

The shares of grocery store operator Metro have jumped 56% in the past five years. They, in fact, hit a new all-time high of $87.94 in November 2024. That gain is largely due to improving efficiency. Retailers typically operate on low margins, so even small cost savings can have a big impact on profits.

We expect the stock will continue to rise in the next few years as Metro realizes the benefits from two new distribution warehouses that use robotic sorting equipment....

4 min read

Pat McKeough

Growth Stocks

These safety-conscious stocks remain buys

LOBLAW COMPANIES, $183.77, is a buy. The retailer (Toronto symbol L; Shares outstanding: 303.8 million; Market cap: $55.8 billion; TSINetwork Rating: Above Average; Dividend yield: 1.1%; www.loblaw.ca) company operates 1,106 supermarkets under several banners, including Loblaws, Zehrs, Provigo, Real Canadian Superstore and No Frills.

The company is now building a new distribution warehouse just north of Toronto in Newmarket, Ontario....

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.