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

FirstService and Collier add market share

These two firms, which provide a variety of specialized real estate services, are hitting new all-time highs. That’s partly due to acquisitions that expand their market share and attract new clients. We feel both can move even higher as falling interest rates spur construction and renovation activity.

FIRSTSERVICE CORP....

2 min read

Pat McKeough

Growth Stocks

CPKC is on a strong growth path

The federal government recently stepped in to end a work stoppage by CPKC’s locomotive engineers, conductors, train and yard workers, and rail traffic controllers. The dispute will now go to binding arbitration, which will likely increase CPKC’s operating costs....

1 min read

Pat McKeough

Growth Stocks

Mondelez’s top brands give it an edge

Mondelez’s sales have suffered lately as consumers moved to cut their spending in response to elevated inflation and interest rates. However, the company’s top brands are not losing ground to private label products. Its sales volumes should continue to improve as inflation continues to ease....

2 min read

Pat McKeough

Growth Stocks

Here are three key updates on your portfolio

BECTON DICKINSON & CO. $235 is a buy. The medical device maker (New York symbol BDX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 289.0 million; Market cap: $67.9 billion; Price-to-sales ratio: 3.5; Dividend yield: 1.6%; TSINetwork Rating: Above Average; www.bd.com) recently acquired the Critical Care product group of Edwards Lifesciences Corp....

2 min read

Pat McKeough

Growth Stocks

Boeing’s problems impact these suppliers

Aircraft maker Boeing has had to slow production of some of its planes due to a strike by machinists at its main plants. That will probably slow earnings growth at both of these suppliers. Their high p/e’s also add risk.

GENERAL ELECTRIC CO. $189 is a hold. The company (New York symbol GE; Conservative Growth Portfolio, Manufacturing sector; Shares o/s: 1.1 billion; Market cap: $207.9 billion; Price-to-sales ratio: 3.0; Dividend yield: 0.6%; TSINetwork Rating: Average; www.geaerospace.com) recently spun off subsidiaries GE HealthCare (X-ray equipment, MRIs and ultrasound scanners) and GE Vernova (equipment for power plants and renewable energy projects) as separate companies.

The remaining firm now operates as GE Aerospace....

2 min read

Pat McKeough

Growth Stocks

Sony launches pricier PS5

SONY GROUP CORP. ADRs $96 is a hold. The Japanese conglomerate (New York symbol SONY; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.3 billion; Market cap: $124.8 billion; Price-to-sales ratio: 1.3; Dividend yield: 0.6%; TSINetwork Rating: Average; www.sony.com) sold 2.4 million of PlayStation 5 video game consoles in its fiscal 2025 first quarter, ended June 30, 2024....

1 min read

Pat McKeough

Growth Stocks

New alliances are lifting PayPal

PAYPAL HOLDINGS INC. $77 is a buy, but only for highly aggressive investors. The company (Nasdaq symbol PYPL; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 1.05 billion; Market cap: $80.9 billion; Price-to-sales ratio: 2.7; 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

Motorola continues to impress us

MOTOROLA SOLUTIONS INC. $450 is a buy. The company (New York symbol MSI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 166.8 million; Market cap: $75.1 billion; Price-to-sales ratio: 7.4; Dividend yield: 0.9%; TSINetwork Rating: Average; www.motorolasolutions.com) reported that revenue in the second quarter of 2024 rose 9.4%, to $2.63 billion from $2.40 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

Chipmaker poised for more gains

Despite slowing sales of its chips to makers of industrial products and cars, the shares of Texas Instruments have jumped 27% in the past year. In the process, they hit a new all-time high of $215 in August 2024.

The impressive rise is partly due to pressure from an activist investor who prompted the company to adjust its spending on new chip plants....

5 min read

Pat McKeough

Growth Stocks

We still see gains ahead for these two picks: DraftKings & Warner Music

DraftKings and Warner Music soared during the pandemic but have now given up some of those gains. We still like their competitive prospects in their niche markets, and each stock is especially attractive for new buying right now.

DRAFTKINGS INC., $38.07, is a buy. The company (Nasdaq symbol DKNG; TSINetwork Rating: Extra Risk) (www.draftkings.com; Shares outstanding: 841.7 million; Market cap: $32.0 billion; No dividend) currently provides sports betting in several U.S....

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.