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

Carrier is living up to its spinoff potential

Carrier is a great example of how spinoffs unlock value by providing investors with an easier-to-understand firm focused on one business. Since it became an independent firm in 2020, Carrier, with its core focus on heating and cooling systems has seen its stock soar over 500%....

2 min read

Pat McKeough

Growth Stocks

Use these updates to enhance your returns

MOLSON COORS BEVERAGE CO. $61 is a hold. The beer brewer (New York symbol TAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 206.0 million; Market cap: $12.6 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.9%; TSINetwork Rating: Average; www.molsoncoors.com) is paying an undisclosed sum for a majority stake in VOA, the energy drink brand co-founded by actor Dwayne “The Rock” Johnson....

2 min read

Pat McKeough

Growth Stocks

Big investments should pay off

These two technology legends are spending big sums on new plants. These investment will help them tap into the fast-growing demand for artificial intelligence-related products as well as spur their long-term earnings.

MICROSOFT CORP. $423 is a buy for aggressive investors. The world’s largest computer software maker (Nasdaq symbol MSFT; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 7.4 billion; Market cap: $3.1 trillion; Price-to-sales ratio: 12.6; Dividend yield: 0.8%; TSINetwork Rating: Above Average; www.microsoft.com) continues to benefit from strong demand for its Azure cloud computing service and its artificial intelligence software tools....

2 min read

Pat McKeough

Growth Stocks

Strong quarter for Gen Digital

GEN DIGITAL INC. $31 is a buy. The company (Nasdaq symbol GEN; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 639.1 million; Market cap: $19.8 billion; Price-to-sales ratio: 5.1; Dividend yield: 1.6%; TSINetwork Rating: Average; www.gendigital.com) is the parent firm of several computer security-related brands, including Norton, LifeLock, Avast, Avira, AVG, and Ccleaner.

Gen continues to attract new customers....

1 min read

Pat McKeough

Growth Stocks

Procter taps Chinese influencers

PROCTER & GAMBLE CO. $179 is a buy. The company (New York symbol PG; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 2.4 billion; Market cap: $429.6 billion; Price-to-sales ratio: 5.3; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.pg.com) is the world’s largest maker of household and personal-care goods....

1 min read

Pat McKeough

Growth Stocks

Cut your Finance sector risk with these three

We continue to recommend investors diversify their Finance sector holdings beyond the big banks by holding high-quality non-bank firms such as the three below.

Each is a a leader in its niche industry, which cuts your risk. As well, despite recent share price gains, all three still trade at attractive multiples to their earnings.

AMERICAN EXPRESS CO....

5 min read

Pat McKeough

Growth Stocks

Acquisition lifts Agilent

AGILENT TECHNOLOGIES INC. $138 is a buy. The company (New York symbol A; Aggressive Growth Portfolio, Manufacturing sector; Shares outstanding: 285.2 million; Market cap: $39.4 billion; Price-to-sales ratio: 6.0; Dividend yield: 0.7%; TSINetwork Rating: Average; www.agilent.com) makes specialized testing equipment for medical research laboratories and industrial clients.

In September 2024, the firm paid $925 million for Biovectra, a Canadian business that helps drug developers research and manufacture their products.

That purchase helped lift Agilent’s revenue in its fiscal 2024 fourth quarter, ended October 31, 2024, by 0.8%, to $1.70 billion from $1.69 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

AI should continue to spur IBM

Legacy tech firm IBM has gained 47% in the past year, mainly due to investor enthusiasm for its artificial intelligence (AI) software. The company has a long history with AI; in fact, in 2011, IBM’s Watson supercomputer beat human contestants on the Jeopardy game show.

The company is also benefiting as more businesses shift their computing operations to cloud-based platforms.

We feel IBM still has lots of room to move even higher over the next few years....

4 min read

Pat McKeough

Growth Stocks

Here are updates on two of your buys: Gen Digital & Well Health Technologies

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:

GEN DIGITAL INC., $29.44, is a buy. The firm (Nasdaq symbol GEN; TSINetwork Rating: Extra Risk) (gendigital.com; Shares o/s: 616.2 million; Market cap: $18.1 billion; Dividend yield: 1.7%) is the parent company for several security-related consumer brands, including Norton, LifeLock, and Avast, in addition to Avira, AVG, and CCleaner.

Gen continues to attract new customers....

2 min read

Pat McKeough

Growth Stocks

Here’s our Power Recommendation Portfolio for December 2024

You Can See Our Current Power Recommendations For December 2024 Here.

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

1 min read

Pat McKeough

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Investors Association of Canada
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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.