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

Metro adds MOI in Ontario

METRO INC., $85.09, is a buy. The company (Toronto symbol MRU; Shares o/s: 222.7 million; Market cap: $19.0 billion; TSINetwork Rating: Average; Yield: 1.6%; www.metro.ca) has now launched its new MOI rewards program across all of its supermarkets and pharmacies in Ontario....

1 min read

Pat McKeough

Growth Stocks

Updating our Aggressive stocks: NCR Atleo, NCR Voyix and Restaurant Brands International

NCR ATLEOS CORP. $27 (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 (called NCR Atleos) focuses on automated teller machines, and the other (called NCR Voyix, see below) focuses on digital commerce businesses....

1 min read

Pat McKeough

Growth Stocks

Activists prompt CEO change

STARBUCKS CORP. $98 is a buy. The coffee chain giant (Nasdaq symbol SBUX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 1.1 billion; Market cap: $107.8 billion; Price-to-sales ratio: 3.0; Dividend yield: 2.5%; TSINetwork Rating: Above Average; www.starbucks.com) is down from its 2021 peak of $121 due to slowing demand for premium-priced coffees in the U.S....

1 min read

Pat McKeough

Growth Stocks

Three more updates to protect your gains

GE HEALTHCARE TECHNOLOGIES INC. $89 is a buy. The company (Nasdaq symbol GEHC; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 456.7 million; Market cap: $40.6 billion; Price-to-sales ratio: 2.1; Dividend yield: 0.1%; TSINetwork Rating: Average; www.gehealthcare.com) makes X-ray equipment, MRIs and ultrasound scanners.

On January 3, 2023, General Electric Co....

2 min read

Pat McKeough

Growth Stocks

Legacy contracts weigh on Kyndryl

KYNDRYL HOLDINGS INC. $24 is still a hold. The company (New York symbol KD; Conservative Growth, Manufacturing & Industry sector; Shares outstanding: 230.5 million; Market cap: $5.5 billion; Price-to-sales ratio: 0.4; No dividend paid; TSINetwork Rating: Average; www.kyndryl.com) helps corporate and government clients manage their datacentres....

1 min read

Pat McKeough

Growth Stocks

They’ve given you triple-digit gains

Agilent and Keysight are great examples of how spinoffs can deliver big returns for growth investors. In the 10 years since Agilent spun off Keysight (shareholders received one Keysight share for every two shares they held), the stock is up 220%, while Keysight has soared 420%....

2 min read

Pat McKeough

Growth Stocks

IFF aims to cut its debt

INTERNATIONAL FLAVORS & FRAGRANCES INC. $104 is a buy. The maker of compounds that improve the taste of food and the smell of consumer products (New York symbol IFF; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 255.7 million; Market cap: $26.6 billion; Price-to-sales ratio: 2.4; Dividend yield: 1.5%; TSINetwork Rating: Above Average; www.iff.com) continues to sell less-important assets to pay down its long-term debt; that debt totalled $8.60 billion as of June 30, 2024, which is equal to 32% of the company’s market cap.

Under that plan, IFF recently sold its Cosmetic Ingredients business for $841 million....

1 min read

Pat McKeough

Growth Stocks

The new Six Flags aims to trim debt

SIX FLAGS ENTERTAINMENT CORP. $39 is a hold. The company (New York symbol SIX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 100.3 million; Market cap: $3.9 billion; Price-to-sales ratio: 1.1; No dividend paid; TSINetwork Rating: Average; www.sixflags.com) took its current form on July 1, 2024 when Cedar Fair L.P....

1 min read

Pat McKeough

Growth Stocks

Tap the AI wave with these top techs

These three technology stocks continue to hit new highs due to investor enthusiasm for artificial intelligence and its ability to help businesses improve their efficiency and profits. We like the outlook for all three, but see just two as buys right now.

NVIDIA CORP....

4 min read

Pat McKeough

Growth Stocks

Danaher profit will move up

DANAHER CORP. $256 remains a buy for aggressive investors. The company (New York symbol DHR; Aggressive Growth Portfolio; Manufacturing sector; Shares outstanding 722.2 million; Market cap: $184.9 billion; Price-to-sales ratio: 8.2; Dividend yield: 0.4%; TSINetwork Rating: Above Average; www.danaher.com) makes precision-testing equipment and tools for medical research labs and municipal water utilities.

In December 2023, the company acquired U.K.-based Abcam plc (Nasdaq symbol ABCM) for $5.7 billion....

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.