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

Rising air travel spurs Howmet

HOWMET AEROSPACE INC. $108 is a hold. The company (New York symbol HWM; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 406.3 million; Market cap: $43.9 billion; Price-to-sales ratio: 6.3; Dividend yield: 0.3%; TSINetwork Rating: Average; www.howmet.com) makes a range of industrial parts, from jet engine components and fasteners to forged aluminum wheels.

Howmet’s revenue in the third quarter of 2024 rose 10.7%, to $1.84 billion from $1.66 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

RTX overcomes engine setback

The shares of aerospace equipment maker RTX are up 65% since dropping to $69 in October 2023 on the news of a defective jet engine recall. The share price jump is largely because the company significantly expanded its capacity to handle these repairs, which has helped it speed up that work.

We feel the stock still has plenty of room to move higher in 2025, as the conflicts in Ukraine and the Middle East spur demand for its military equipment, particularly the Patriot surface-to-air missile system....

4 min read

Pat McKeough

Growth Stocks

Key trends will spur these healthcare stocks

The pandemic presented both of these firms with unique challenges. However, each remained profitable and is now well positioned to keep prospering. Trends underway as well as the strong position of each firm in its key markets will power future gains. Both of these leaders are buys.

ALCON, $85.54, is a buy. The firm (New York symbol ALC; TSINetwork Rating: Extra Risk) (www.alcon.com; Shares outstanding: 499.7 million; Market cap: $42.3 billion; Dividend yield 0.3%) is the world’s biggest eye-care company....

2 min read

Pat McKeough

Growth Stocks

Here are updates on two of your buys

Long-time readers know that we aim to keep you informed of important news about the stocks we cover. That means highlighting developments and plans that promise to bolster investor gains. Here are two buys that stand out this month:

PAGERDUTY INC., $19.60, is a buy. The company (New York symbol PD; TSINetwork Rating: Extra Risk) (pagerduty.com; Shares o/s: 90.2 million; Market cap: $1.8 billion; No divd.) operates a platform that collects real-time data from software systems and devices and then notifies its IT customers of incidents that could harm operations.

For the three months ended October 31, 2024, revenue rose 6.4%, to $118.9 million from $108.7 million a year earlier....

2 min read

Pat McKeough

Growth Stocks

Gen adds a finance platform

GEN DIGITAL INC., $29.38, is a buy. The firm (Nasdaq symbol GEN; TSINetwork Rating: Extra Risk) (gendigital.com; Shares o/s: 616.3 million; Market cap: $18.3 billion; Dividend yield: 1.7%) is buying MoneyLion Inc. for $1 billion, plus a possible future contingent payout....

1 min read

Pat McKeough

Growth Stocks

Two Canadian growth stocks to buy now leaders

We see both Calian and Wajax as having bright futures given their high-demand services and the resulting growth prospects. Meanwhile, each stock offers you a sustainable yield. Both are buys.

CALIAN GROUP, $47.73, is a buy. The stock (Toronto symbol CGY; TSINetwork Rating: Extra Risk) (calian.com; Shares outstanding: 11.8 million; Market cap: $555.0 million; Dividend yield: 2.4%) lets investors tap the Ottawa-based company’s four main operating segments:

Advanced Technologies offers products and engineering services for the space, communications, nuclear, agriculture, defence and government sectors....

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:

PONY AI INC....

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:

SHOPIFY, $170.88, remains a buy. The company (Toronto symbol SHOP; TSINetwork Rating: Extra Risk) (www.shopify.ca; Shares outstanding: 1.3 billion; Market cap: $213.6 billion; No dividends paid) offers merchants of all sizes Internet-based software to design, set up and manage e-commerce stores across multiple sales channels....

1 min read

Pat McKeough

Growth Stocks

Corteva leads in its growing markets

Corteva shares offer investors a number of pluses: Not only is the company at the forefront of key agricultural trends, the stock is a spinoff. Over the years, we’ve found that spinoffs are about as close as you can get to a sure thing in investing. It’s one key reason why we think there are significant gains ahead for existing Corteva investors and for new ones....

2 min read

Pat McKeough

Growth Stocks

This gift keeps giving

ELI LILLY & CO., $778.62, is still a buy. The company (New York symbol LLY; TSINetwork Rating: Above Average) (www.lilly.com; Shares outstanding: 949.3 million; Market cap: $739.2 billion; Dividend yield: 0.8%) now plans to test its popular weight-loss drug Zepbound as a treatment for alcohol and drug addiction.

The news comes as the body of evidence increasingly suggests Zepbound and other GLP-1 weight-loss drugs can help people with substance abuse disorders.

Indeed, several retrospective studies already suggest an association between GLP-1 treatments and lower risks of alcohol and opioid abuse....

1 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.