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.

You Can See Our Current Power Recommendations For February 2025 Here.

Understanding our recommendations: Power Buy—These stocks are our top choices for new buying now....

1 min read

Pat McKeough

Growth Stocks

These two fintechs tap key trends

ACI Worldwide and Broadridge have winning business models, especially in today’s expanding financial markets. We believe that will lead to strong growth in future years. Both are hitting new highs, but we still see them as buys.

ACI WORLDWIDE, $52.88, is a buy. The firm (Nasdaq symbol ACIW; TSINetwork Rating: Extra Risk) (Shares outstanding: 104.9 million; Market cap: $5.6 billion; No dividends paid) is the leading software provider for processing transactions by credit cards, debit cards, automated teller machines, point-of-sale terminals and interbank systems....

2 min read

Pat McKeough

Growth Stocks

Shopify buys two important website domains

Shopify offers merchants of all sizes Internet-based software to design, set up and manage e-commerce stores across multiple sales channels. It also handles digital payments and shipping.

SHOPIFY, $153.03, remains a buy. The company (Toronto symbol SHOP; TSINetwork Rating: Extra Risk) (www.shopify.ca; Shares outstanding: 1.2 billion; Market cap: $197.0 billion; No dividends paid) is now reporting its purchase of two important website domains from EMERGE Commerce Ltd....

1 min read

Pat McKeough

Growth Stocks

Niche retailers for Consumer sector growth

Many traditional bricks-and-mortar retailers continue to struggle against the pandemic-spurred onslaught of online shopping and the impact of past inflation on consumer spending. Still, we believe the unique markets of TJX and North West offer you the possibility of strong gains ahead.

THE TJX COMPANIES, $122.57, (New York symbol TJX; TSINetwork Rating: Above Average) (tjx.com; Shares o/s: 1.1 billion; Market cap: $138.6 billion; Yield: 1.2%), is a leading off-price retailer of clothing, accessories and home fashions....

2 min read

Pat McKeough

Growth Stocks

This stock offers limited prospects

You should remain wary of stocks that attract broker/media attention because of high-profile products or services, and their business models. Here’s a closer look at one stock with risks that prospective investors should take into consideration:

CELSIUS HOLDINGS INC., $25.35, (Nasdaq symbol CELH; TSINetwork Rating: Extra Risk) (www.celsius.com; Shares o/s: 235.0 million; Market cap: $6.3 billion; No divd.) makes Celsius, a growing lifestyle energy drink brand.

In the quarter ended September 30, 2024, Celsius’s revenue was $265.7 million, down 31.0% from $384.9 million a year earlier....

1 min read

Pat McKeough

Growth Stocks

Use these stocks to power your AI returns

Artificial intelligence (AI) is an example of an investment idea that could boost your investment returns, or, more likely, end up costing you money. All in all, we think that the biggest, surest gains from AI will come from investing in established businesses that are already profitable and growing, and that can gain all the more by applying AI to their operations.

Here are two companies that are already profitably taking advantage of AI, and they should be among the leaders in the push to extend AI’s use:

AMAZON.COM INC., $235.01, remains a buy. The company (Nasdaq symbol AMZN; TSINetwork Rating: Average) (www.amazon.com; Shares o/s: 10.5 billion; Market cap: $2.4 trillion; No dividends paid) is one of the world’s largest online retailers....

2 min read

Pat McKeough

Growth Stocks

Boston Scientific expands in niche

BOSTON SCIENTIFIC CORP., $100.31, is a buy. The company (New York symbol BSX; TSINetwork Rating: Average) (bostonscientific.com; Shares o/s: 1.5 billion; Market cap: $148.7 billion; No dividends paid) has agreed to acquire the rest of Bolt Medical for $443 million....

1 min read

Pat McKeough

Growth Stocks

Goodyear sells Dunlop

GOODYEAR TIRE & RUBBER, $9.34, is a buy. The manufacturer (Nasdaq symbol GT; TSINetwork Rating: Extra Risk) (Shares outstanding: 284.7 million; Market cap: $2.6 billion; No dividends paid) now plans to sell its Dunlop brand to Japan’s Sumitomo Rubber Industries for about $701 million.

The sale will include Dunlop trademarks and intangible assets in Europe, North America, and Southeast Asia including Australia (Oceania).

Meanwhile, the company will license back the Dunlop trademarks in Europe for truck tires and retain its rights to the Dunlop trademarks for its motorcycle tires in Europe and Oceania.

Longer term, Goodyear’s outlook is positive....

1 min read

Pat McKeough

Growth Stocks

Three top picks to power your 2025

We have singled out three growth buys for 2025—ones we believe have exceptional prospects for the year ahead. What’s more, each is a market leader, which cuts your risk.

EXPEDIA GROUP INC., $173.65, is a #1 Power Buy for 2025. The company (Nasdaq symbol EXPE; TSINetwork Rating: Average) (www.expediagroup.com; Shares outstanding: 142.6 million; Market cap: $23.3 billion; No dividends paid) operates the world’s largest travel booking platform....

4 min read

Pat McKeough

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Chuck Chakrapani, PhD
Investors Association of Canada
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Financial Post Columnist
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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.

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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.

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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.