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

Big investments will lift Mattr profits

MATTR CORP. $14 is a buy for aggressive investors. The company (Toronto symbol MATR; Aggressive Growth Portfolio, Manufacturing sector; Shares outstanding: 66.4 million; Market cap: $929.6 million; Price-to-sales ratio: 1.1; Dividend suspended in March 2020; TSINetwork Rating: Average; www.mattr.com) is the new name for ShawCor Ltd....

1 min read

Pat McKeough

Growth Stocks

Focus on services lowers AtkinsRealis’s risk

Engineering company SNC-Lavalin recently changed its name to AtkinsRealis. The change is part of its new strategy, which mainly involves exiting lump-sum, turnkey (LSTK) construction projects. They expose it—and its investors—to cost overruns. The company is also narrowing its work to services such as design and consulting, instead of construction....

2 min read

Pat McKeough

Growth Stocks

RBI aims for Walmart shoppers

RESTAURANT BRANDS INTERNATIONAL INC. $94 is a buy for aggressive investors. The fast-food operator (Toronto symbol QSR, Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 447.0 million; Market cap: $42.0 billion; Price-to-sales ratio: 4.1; Dividend yield: 3.2%; TSINetwork Rating: Average; www.rbi.com) has 31,324 outlets in over 100 countries, comprised of Burger King, Tim Hortons (coffee and donuts), Popeyes Louisiana Kitchen (fried chicken) and Firehouse Subs locations.

Restaurant Brands’ Burger King chain in the U.S....

1 min read

Pat McKeough

Growth Stocks

Toromont expands key unit

TOROMONT INDUSTRIES LTD. $124 is a buy. The company (Toronto symbol TIH; Aggressive Growth Portfolio; Manufacturing sector; Shares outstanding: 81.9 million; Market cap: $10.2 billion; Price-to-sales ratio: 2.1; Dividend yield: 1.6%; TSINetwork Rating: Extra Risk; www.toromont.com) distributes a broad range of Caterpillar and other branded industrial equipment (such as bulldozers, backhoe loaders and drills) in eastern Canada and the Eastern Seaboard of the U.S....

1 min read

Pat McKeough

Growth Stocks

AQN moves to cut your risk

ALGONQUIN POWER & UTILITIES, $7.19, is a buy. The utility (Toronto symbol AQN; Shares o/s: 689.7 million; Market cap: $5.5 billion; TSINetwork Rating: Extra Risk; Yield: 5.3%; www.algonquinpower.com) has agreed to sell most of its non-regulated renewable power assets for $2.28 billion....

1 min read

Pat McKeough

Growth Stocks

Two grocery leaders with bright outlooks

Both Loblaw and Metro successfully weathered the pandemic. In fact, the shares of both are now trading at all-time highs for our subscribers! Meanwhile, we think both stocks still have gains ahead. Indeed, both remain buys.

LOBLAW COMPANIES, $175.92, is a buy. The retailer (Toronto symbol L; Shares o/s: 305.1 million; Market cap: $53.7 billion; TSINetwork Rating: Above Average; Dividend yield: 1.2%; www.loblaw.ca) operates 1,106 supermarkets under several banners, including Loblaws, Zehrs, Provigo, Real Canadian Superstore and No Frills....

2 min read

Pat McKeough

Growth Stocks

WBD takes a big writedown

WARNER BROS. DISCOVERY INC. $7.97 is still a hold. The company (Nasdaq symbol WBD; Aggressive Growth Portfolio; Consumer sector; Shares outstanding: 2.4 billion; Market cap: $19.1 billion; Price-to-sales ratio: 0.5; No dividend paid; TSINetwork Rating: Average; www.wbd.com) took its current form in April 2022 when AT&T merged its WarnerMedia business with Discovery Inc....

1 min read

Pat McKeough

Growth Stocks

Use these updates to enhance your returns

SHERWIN-WILLIAMS CO. $362 is a hold. The paint maker (New York symbol SHW; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 252.3 million; Market cap: $91.3 billion; Price-to-sales ratio: 4.0; Dividend yield: 0.8%; TSINetwork Rating: Above Average; www.sherwin-williams.com) reported 0.5% higher sales in the three months ended June 30, 2024, to $6.27 billion from $6.24 billion a year earlier....

2 min read

Pat McKeough

Growth Stocks

Extend your Finance holdings beyond banks

These two firms provide vital services that help both businesses and financial service providers operate more efficiently and lower their costs. Both are solid additions to the Finance sector of your portfolio.

BROADRIDGE FINANCIAL SOLUTIONS INC....

2 min read

Pat McKeough

Growth Stocks

This three-way split continues to pay off

On April 3, 2020, aerospace and military equipment maker RTX Corp. (formerly called Raytheon Technologies) spun off its Otis (elevators) and Carrier (heating and air conditioning equipment) businesses. For each UTX share they held, investors received 0.5 of a share in Otis and 1 share in Carrier.

The split has let each firm focus on its main businesses....

4 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.