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 Aggressive Growth portfolio for February 2025 Here.

We designed our Portfolios to help you build the kind of portfolio we advocate....

1 min read

Pat McKeough

Growth Stocks

Updating your Aggressive stocks: Nutrien, Restaurant Brands and Saputo

NUTRIEN LTD. $75 (www.nutrien.com) remains a buy. The company is the world’s largest producer of agricultural fertilizers. The stock shot up to $148 in April 2022 following Russia’s invasion of Ukraine, which caused a big spike in potash prices....

1 min read

Pat McKeough

Growth Stocks

CGI ready to make acquisition work

CGI INC. $155 is a buy. The company (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 227.9 million; Market cap: $35.3 billion; Price-to-sales ratio: 2.4; Dividend yield: 0.4%; TSINetwork Rating: Average; www.cgi.com) is Canada’s largest provider of computer-outsourcing services.

CGI fuels its growth with a “Build and Buy” strategy....

1 min read

Pat McKeough

Growth Stocks

Top grocers look to build on their gains

The shares of grocery store operators Loblaw and Metro are hitting new all-time highs. That’s mainly because their large operations give them economies of scale and the ability to negotiate better prices from suppliers. Both firms are also adding more discount-price stores to further attract cost-conscious shoppers.

LOBLAW COMPANIES LTD....

2 min read

Pat McKeough

Growth Stocks

Dividend hike ahead of spinoff

MAPLE LEAF FOODS INC. $21 is a hold. The company (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 123.4 million; Market cap: $2.6 billion; Price-to-sales ratio: 0.6; Dividend yield: 4.6%; TSINetwork Rating: Average; www.mapleleaffoods.com) sells fresh and prepared meats under the Maple Leaf and Schneider labels....

1 min read

Pat McKeough

Growth Stocks

Three picks to spur your 2025 returns

Our goal when selecting your annual stocks of the year is to home in on companies offering an unbeatable combination of strong growth prospects and attractive valuations.

For 2025, we have selected three stocks—one each from our Conservative, Aggressive and Income portfolios—that offer you such a winning hand....

5 min read

Pat McKeough

Growth Stocks

CPKC targets hydrogen

CANADIAN PACIFIC KANSAS CITY, $109.63, is a buy. The company (Toronto symbol CP; shares outstanding: 933.3 million; Market cap: $103.4 billion; Rating: Above Average; Dividend yield: 0.7%) ships freight over a 32,190-kilometre rail network....

1 min read

Pat McKeough

Growth Stocks

Here are three key updates on your holdings

NEWELL BRANDS INC. $10 remains a hold. The company (Nasdaq symbol NWL; Aggressive Growth and Income Portfolios, Consumer sector; Shares outstanding: 416.0 million; Market cap: $4.2 billion; Price-to-sales ratio: 0.6; Dividend yield: 2.8%; TSINetwork Rating: Average; www.newellbrands.com) makes a wide range of consumer and household products such as PaperMate pens, Elmer’s glue, Rubbermaid food containers, Graco baby strollers, Coleman camping gear and Oster kitchen appliances.

In the quarter ended September 30, 2024, revenue declined 4.9%, to $1.95 billion from $2.05 billion a year earlier....

2 min read

Pat McKeough

Growth Stocks

Sherwin still looks pricey

SHERWIN-WILLIAMS CO. $349 is a hold. The paint maker (New York symbol SHW; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 251.9 million; Market cap: $87.9 billion; Price-to-sales ratio: 4.0; Dividend yield: 0.8%; TSINetwork Rating: Above Average; www.sherwin-williams.com) reported 0.7% higher sales in the three months ended September 30, 2024, to $6.16 billion from $6.12 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

Philips drops on weak sales outlook

PHILIPS ELECTRONICS N.V. ADRs $25 is a hold. The company (New York symbol PHG; Conservative Growth Portfolio, Manufacturing sector; ADRs outstanding: 906.3 million; Market cap: $22.7 billion; Price-to-sales ratio: 1.3; Dividend suspended in 2024; TSINetwork Rating: Average; www.philips.com) makes industrial health-care products, including X-ray scanners and ultrasound systems, along with consumer goods such as electric shavers and electric toothbrushes.

The stock dropped over 20% recently after the company said its revenue would likely rise 1.5% in 2024 compared to its earlier prediction for 5% growth....

1 min read

Pat McKeough

Testimonials

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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.