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

Possible tariffs weigh on these manufacturers

These three manufacturers operate plants across North America. That makes them vulnerable to rising input costs if the U.S. imposes a 25% tariff on imports from Canada and Mexico.

Despite tariff uncertainty, we still like the long-term prospects for CAE and Linamar....

5 min read

Pat McKeough

Growth Stocks

Updating your Aggressive stocks: Apa, Six Flags Entertainment and Keysight Technologies

APA CORP. $23 (www.apacorp.com) is a hold. The company produces oil and natural gas in the U.S., Egypt and the U.K. In April 2024, APA acquired Callon Petroleum Company (New York symbol CPE) in an all-stock merger worth $4.5 billion....

1 min read

Pat McKeough

Growth Stocks

Turnaround plan will push this stock higher

Starbucks’ shares have gained 45% since it named Brian Niccol as its new CEO in August 2024. Investors expect his experience turning around Chipotle Mexican Grill after a food safety crisis will help the company attract more customers and spur its earnings. In fact, it now looks like his new growth plan is starting to pay off.

STARBUCKS CORP....

2 min read

Pat McKeough

Growth Stocks

Chipmaker has long-term appeal

TEXAS INSTRUMENTS INC. $180 is a buy. The company (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing sector; Shares outstanding: 913.0 million; Market cap: $164.3 billion; Price-to-sales ratio: 10.6; Dividend yield: 3.0%; TSINetwork Rating: Average; www.ti.com) is a leading maker of analog chips, which convert inputs like touch and sound into electronic signals that computers can understand.

In the quarter ended December 31, 2024, revenue fell 1.7%, to $4.01 billion from $4.08 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

Three more updates to protect your gains

ARCHER DANIELS MIDLAND CO. $52 is a hold. The company (New York symbol ADM; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 494.4 million; Market cap: $25.7 billion; Price-to-sales ratio: 0.3; Dividend yield: 3.8%; TSINetwork Rating: Above Average; www.adm.com) processes corn, wheat, soybeans, flax seed and other crops into a variety of food ingredients such as flour, oils and sweeteners.

Archer will now restate its results for 2023, as well as the first two quarters of 2024....

2 min read

Pat McKeough

Growth Stocks

Boeing reports higher loss

BOEING CO. $174 remains a hold. The aircraft maker (New York symbol BA; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 613.9 million; Market cap: $106.8 billion; Price-to-sales ratio: 1.7; Dividend suspended in June 2020; TSINetwork Rating: Extra Risk; www.boeing.com) delivered 57 commercial jetliners in the fourth quarter of 2024, down from 157 a year earlier....

1 min read

Pat McKeough

Growth Stocks

These two look extra risky after big gains

On April 2, 2024, the old General Electric spun off its power equipment business as GE Vernova. Investors received one share of the new firm for every four GE shares they held. Each stock is up sharply since the split, but both are now very expensive in relation to their earnings....

2 min read

Pat McKeough

Growth Stocks

Yum China continues its expansion

YUM CHINA HOLDINGS INC. $45 is a buy for aggressive investors. The company (New York symbol YUMC; Aggressive Growth Portfolio, Consumer Sector; Shares outstanding: 391.0 million; Market cap: $17.6 billion; Price-to-sales ratio: 1.6; Dividend yield: 1.4%; TSINetwork Rating: Average; www.yumchina.com) is China’s largest fast-food operator with over 15,800 outlets, mainly under the KFC and Pizza Hut banners.

Despite slowing economic growth in China, it still expects to reach 20,000 outlets by 2026....

1 min read

Pat McKeough

Growth Stocks

Adding AI should spur their profits

These two software makers are adding artificial intelligence (AI) tools to their programs. That should make them more appealing to their customers and continue to fuel their earnings.

ADOBE INC. $442 is a buy for aggressive investors. The software maker (Nasdaq symbol ADBE; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 435.3 million; Market cap: $192.4 billion; Price-to-sales ratio: 9.3; No dividends paid since June 2005; TSINetwork Rating: Average; www.adobe.com) operates through three main segments: The Digital Media segment’s software includes Adobe Photoshop and Adobe InDesign; the Digital Experience segment provides analytics, social marketing, targeting, media optimization, and cross-channel campaign management software, as well as premium video delivery; and the Publishing segment produces software that lets computer users create, edit and share documents in the popular PDF format.

Adobe continues to benefit from its decision a few years ago to switch to selling programs as ongoing subscriptions instead of one-time purchases....

2 min read

Pat McKeough

Growth Stocks

AI demand will drive Cisco higher

CISCO SYSTEMS INC. $60 is a buy. The company (Nasdaq symbol CSCO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.0 billion; Market cap: $240.0 billion; Price-to-sales ratio: 4.5; Dividend yield: 2.7%; TSINetwork Rating: Average; www.cisco.com) is a leading maker of products that link and manage computer networks.

Cisco also continues to see strong demand for products related to artificial intelligence (AI), as those software programs require faster data transfer speeds and capacity.

Orders related to AI totalled $300 million in its fiscal 2025 first quarter, ended October 26, 2024, and should reach $1.0 billion for the full year.

The stock is up 14% in the past year....

1 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.