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.

Read More Close

Growth Stocks Library Archives

Growth Stocks

Updating your Income stocks: 3M, Snap-On and Quaker Chemical

3M COMPANY $147 (www.3m.com) is a buy. It makes a wide variety of industrial and consumer products, including Post-it notes, Scotch tape, Scotch-Brite cleaning products, Scotchguard fabric protection and Thinsulate insulation. In the three months ended December 31, 2024, rose 2.2%, to $5.81 billion from $5.68 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

Lower costs will spur Otis’s earnings

OTIS WORLDWIDE CORP. $99 is a buy. The company (New York symbol OTIS; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 400.6 million; Market cap: $39.7 billion; Price-to-sales ratio: 2.8; Dividend yield: 1.6%; TSINetwork Rating: Average; www.otis.com) is the world’s largest maker of elevators and escalators.

Otis’s revenue in the three months ended December 31, 2024, rose 2.3%, to $3.68 billion from $3.62 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

Idexx still looks pricey

IDEXX LABORATORIES INC. $458 is a hold. The company (Nasdaq symbol IDXX; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 81.3 million; Market cap: $37.2 billion; Price-to-sales ratio: 9.8; No dividends paid; TSINetwork Rating: Average; www.idexx.com) makes equipment that veterinarians use to detect disease in animals.

In the fourth quarter of 2024, Idexx’s sales rose 5.8%, to $954.3 million from $901.6 million a year earlier....

1 min read

Pat McKeough

Growth Stocks

Foodmakers pivot to healthier products

In response to rising consumer demand more healthful foods, Mondelez and Campbell’s are reformulating their products with new ingredients. While that will add to their costs, it should also help drive their long-term sales. Moreover, their strong brands make it easier for them to pass along those higher costs to customers.

MONDELEZ INTERNATIONAL INC....

2 min read

Pat McKeough

Growth Stocks

PayPal has a bright outlook

PAYPAL HOLDINGS INC. $72 is a buy, but only for aggressive investors. The company (Nasdaq symbol PYPL; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 989.2 million; Market cap: $71.2 billion; Price-to-sales ratio: 2.4; No dividends paid; TSINetwork Rating: Above Average; www.paypal.com) processes online transactions on millions of websites, including purchases made on the sites of its former parent company eBay Inc....

1 min read

Pat McKeough

Growth Stocks

Legacy tech aim to tap AI boom

These three legacy technologies continue to invest heavily in new artificial intelligence products and services. That should drive their earnings higher in the next few years. For now, we feel IBM currently offers investors a better combination of AI growth and value than do Apple and Intel.

APPLE INC....

4 min read

Pat McKeough

Growth Stocks

Good quarter for Keysight

KEYSIGHT TECHNOLOGIES INC. $160 remains a buy for aggressive investors. The company (New York symbol KEYS; Aggressive Growth Portfolio, Manufacturing sector; Shares outstanding: 172.9 million; Market cap: $27.7 billion; Price-to-sales ratio: 6.0; No dividend paid; TSINetwork Rating: Average; www.keysight.com) makes an array of devices for testing electronic equipment.

Thanks to better demand from clients in the telecommunications, aerospace and defence industries, the company’s revenue in its fiscal 2025 first quarter, ended January 31, 2025, rose 3.1%, to $1.30 billion from $1.26 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

AI sets up Alphabet for new growth

Alphabet’s class A shares hit a new all-time high of $207 in February 2025, but they have dropped 16% since then. The decline is largely due to the company’s plan fpr a 40% increase in spending on new datacentres (to power its artificial intelligence products).

However, these outlays will help Alphabet compete with other AI offerings from rival online platforms....

4 min read

Pat McKeough

Growth Stocks

Here’s our Power Recommendation Portfolio for March 2025

You Can See Our Current Power Recommendations For March 2025 Here.

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

1 min read

Pat McKeough

Growth Stocks

Outlook keeps brightening for these leaders

The coronavirus pandemic forced the cancellation of most vacation plans. However, the reopening of the economy has spurred strong demand for travel, and both Wyndham and Travel + Leisure should benefit from that continued strength. We see each as a buy.

WYNDHAM HOTELS & RESORTS, $111.77, is a buy. The company (New York symbol WH; TSINetwork Rating: Extra Risk) (www.wyndhamhotels.com; Shares outstanding: 77.7 million; Market cap: $8.7 billion; Dividend yield: 1.4%) is the world’s largest hotel franchiser, with 893,000 rooms spread across 9,200 hotels, with 25 brands in 95 countries.

Wyndham Hotels’ revenue in the three months ended December 31, 2024, rose 6.2%, to $341 million from $321 million a year earlier....

2 min read

Pat McKeough

Testimonials

The cornerstones of Pat’s strategy–value, diversification and timelines–make his newsletter, The Successful Investor, highly profitable while minimizing risk. His advice is no-nonsense, down-to-earth and based on solid research. You’ll know what to invest in and what to avoid.

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.

Jonathan Chevreau
Financial Post Columnist
As a manager of more than $500 million in mutual funds, I have access to the best brokerage research available in this country. But I still take time to read Pat McKeough’s premium newsletters

John Sartz
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.

Chuck J.
Subscriber since 1996. Inner Circle Member Since 2006
The newsletters I receive in Inner Circle Pro are fantastic! I have been following Pat’s advice for years and everything he has said has been amazing. His commentaries are brilliant, insightful, educational, rational and balanced. My returns are almost double the TSE and I have referred many of my friends who have switched over to your services.

Walter H.
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.