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

Great fit for Dorel

DOREL INDUSTRIES $39.39 (Toronto symbol DII.B; TSINetwork Rating: Extra Risk) (514-731- 0000; www.dorel.com; Shares outstanding: 31.5 million; Market cap: $1.2 billion; Dividend yield: 3.2%) has agreed to buy 70% of Caloi, Brazil’s largest bicycle company, for an undisclosed sum.

Established in 1898, Caloi is one of the world’s oldest bicycle makers....

1 min read

Pat McKeough

Growth Stocks

Buy Fair Isaac, hold on to Adobe

FAIR ISAAC CORP. $54.42 (New York symbol FICO; TSINetwork Rating: Average) (415-472-2211; www.fairisaac.com; Shares outstanding: 35.2 million; Market cap: $1.9 billion; Dividend yield: 0.2%) makes FICO Scores, the computer program that dominates the market for software that businesses use to evaluate customer creditworthiness....

2 min read

Pat McKeough

Growth Stocks

Nissan goes driverless

NISSAN MOTOR (ADR) $20.55 (Nasdaq symbol NSANY; TSINetwork Rating: Above Average) (310-771-3111; www.nissan-global.com; Shares outstanding: 2.3 billion; Market cap: $45.2 billion; No dividends paid) plans to make multiple models of self-driving vehicles by 2020.

The technology will include laser scanners, cameras and advanced artificial intelligence....

1 min read

Pat McKeough

Growth Stocks

Commodity-focused techs with gains ahead

PASON SYSTEMS $21.70 (Toronto symbol PSI; TSINetwork Rating: Speculative) (403-301-3400; www.pason.com; Shares outstanding: 82.1 million; Market cap: $1.8 billion; Dividend yield: 2.4%) rents equipment for monitoring and managing oil and gas rigs. It also sells communication technology, such as its satellite system, which companies use to remotely collect data from their drilling operations....

2 min read

Pat McKeough

Growth Stocks

ARO hires new talent

AEROPOSTALE $10.08 (New York symbol ARO; TSINetwork Rating: Extra Risk) (646- 485-5410; www.aeropostale.com; Shares outstanding: 78.5 million; Market cap: $798.2 million; No dividends paid) reported sales of $454.0 million in the three months ended August 3, 2013....

1 min read

Pat McKeough

Growth Stocks

Production hikes keep their cash flow rising

DEVON ENERGY CORP. $59.82 (New York symbol DVN; TSINetwork Rating: Speculative) (405-235- 3611; www.dvn.com; Shares outstanding: 406.0 million; Market cap: $23.9 billion; Dividend yield: 1.5%) is one of the largest U.S.-based oil and natural gas explorers and producers....

2 min read

Pat McKeough

Growth Stocks

Icahn buys more Chesapeake

CHESAPEAKE ENERGY $27.30 (New York symbol CHK; TSINetwork Rating: Extra Risk) (405-848-8000; www.chkenergy.com; Shares outstanding: 665.5 million; Market cap: $18.1 billion; Dividend yield: 1.3%) is up 9% since August 19, when activist investor Carl Icahn revealed that he had increased his stake in the company to 9.98% from 8.98%.

Icahn has a long history of pushing companies to make changes that have increased shareholder value.

He first acquired a stake in Chesapeake in May 2012....

1 min read

Pat McKeough

Growth Stocks

These two have big potential—and big risk

MART RESOURCES $1.19 (Toronto symbol MMT; TSINetwork Rating: Speculative) (403-270-1841; www.martresources.com; Shares outstanding: 356.6 million; Market cap: $449.3 million; Dividend yield: 16.8%) produces oil at its 50%-held Umusadege field in the Niger Delta region of southern Nigeria.

The company recently completed construction of a new central processing facility at the Umusadege field....

2 min read

Pat McKeough

Growth Stocks

New business for Amazon

AMAZON.COM $312.03 (Nasdaq symbol AMZN; TSINetwork Rating: Extra Risk) (206- 266-1000; www.amazon.com; Shares outstanding: 456.9 million; Market cap: $139.0 billion; No dividends paid) has entered into a partnership with magazine publisher Condé Nast.

For a fee, Amazon will handle print and digital subscriptions for seven of Condé Nast’s publications, including Vogue, Golf Digest and Wired.

For Amazon, the deal offers an opportunity to sell magazine subscriptions to its more than 200 million customers and crosssell goods to Condé Nast subscribers....

1 min read

Pat McKeough

Growth Stocks

Updating CARFINCO FINANCIAL GROUP, GOODYEAR TIRE & RUBBER CO. and TIM HORTONS

CARFINCO FINANCIAL GROUP $10.10 (Toronto symbol CFN; TSINetwork Rating: Speculative) (1-888- 486-4356; www.carfinco.com; Shares outstanding: 26.4 million; Market cap: $266.6 million; Dividend yield: 4.8%) has now expanded into the U.S. through its $9.5-million purchase of Persian Acceptance Corp., an automotive lender that also caters to less affluent borrowers.

Persian operates in Massachusetts, New Hampshire, Maine, Connecticut and Vermont....

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.