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

Emerging markets spur IFF’s earnings

INTERNATIONAL FLAVORS & FRAGRANCES INC. $82 (New York symbol IFF; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 81.5 million; Market cap: $6.7 billion; Priceto- sales ratio: 2.4; Dividend yield: 1.7%; TSINetwork Rating: Above Average; www.iff.com) produces compounds that improve the taste of food and make consumer products smell better.

The company continues to expand in fast-growing markets like China, India and Turkey....

1 min read

Pat McKeough

Growth Stocks

Tech spinoffs: one buy and one hold

These two companies have had erratic histories since their parent firms spun them off. Agilent is up 13% since it was established as a separate company, while Teradata has gained 112%. We like the longterm outlook for both, but we only see Agilent as a buy right now.

AGILENT TECHNOLOGIES INC....

2 min read

Pat McKeough

Growth Stocks

New chips power Nvidia’s profits

NVIDIA CORP. $14 (Nasdaq symbol NVDA; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 577.9 million; Market cap: $8.1 billion; Price-to-sales ratio: 2.0; Dividend yield: 2.1%; TSINetwork Rating: Average; www.nvidia .com) continues to benefit from strong demand for its new graphic chips, which make computer games run more smoothly.

In the quarter ended April 28, 2013, Nvidia’s sales rose 3.2%, to $954.7 million from $924.9 million a year earlier....

1 min read

Pat McKeough

Growth Stocks

Obamacare survivors with gains ahead

The new U.S. health care law will force Baxter and C.R. Bard to pay a 2.3% tax on certain medical devices it sells in the country. However, the law will also expand health insurance to more Americans, which should spur demand for both companies’ products. Both are also increasing their overseas sales.

BAXTER INTERNATIONAL INC....

2 min read

Pat McKeough

Growth Stocks

Weaker yen masks slowing sales

CANON INC. ADRs $36 (New York symbol CAJ; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.2 billion; Market cap: $43.2 billion; Price-to-sales ratio: 1.4; Dividend yield: 4.1%; TSINetwork Rating: Above Average; www....

1 min read

Pat McKeough

Growth Stocks

Profit from booming food demand

Global demand for more and better food continues to rise, and developing regions are making better use of their farmland. We feel the best way to profit from these trends is with well-established agricultural leaders like Monsanto and Archer Daniels Midland.

MONSANTO CO....

2 min read

Pat McKeough

Growth Stocks

BHP cuts back on new mines

BHP BILLITON LTD. ADRs $66 (New York symbol BHP; Conservative Growth Portfolio, Resources sector; ADRs outstanding: 2.7 billion; Market cap: $178.2 billion; Price-to-sales ratio: 2.5; Dividend yield: 3.5%; TSINetwork Rating: Average; www.bhpbilliton.com) plans to spend $18 billion developing new mines in the fiscal year ending June 30, 2014, down 18.2% from $22 billion in fiscal 2013....

1 min read

Pat McKeough

Growth Stocks

Updating GANNETT CO. INC., ALCOA INC., FORD MOTOR CO., and PROCTER & GAMBLE CO.

GANNETT CO. INC. $22 (New York symbol GCI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 229.6 million; Market cap: $5.1 billion; Price-to-sales ratio: 0.9; Dividend yield: 3.6%; TSINetwork Rating: Average; www.gannett.com) earned $86.0 million in the first quarter of 2013....

2 min read

Pat McKeough

Growth Stocks

Keep holding Cedar Fair after big gain

CEDAR FAIR L.P. $43 (New York symbol FUN; Income Portfolio, Consumer sector; Units outstanding: 55.6 million; Market cap: $2.4 billion; Price-to-sales ratio: 2.2; Dividend yield: 5.8%; TSINetwork Rating: Average; www.cedarfair.com) lost $1.95 a share in the first quarter of 2013, compared to a loss of $1.18 a year earlier....

1 min read

Pat McKeough

Growth Stocks

Great time to buy Symantec

SYMANTEC CORP. $23 (Nasdaq symbol SYMC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 696.6 million; Market cap: $16.0 billion; Price-to-sales ratio: 2.3; Dividend yield: 2.6%; TSINetwork Rating: Average; www.symantec.com) makes software that protects computers from viruses and intruders, including the popular Norton anti-virus program....

2 min read

Pat McKeough

Testimonials

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Investors Association of Canada
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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.