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

Two U.S. growth stocks with gains ahead: Electronic Arts & Warner Music Group

Pandemic lockdowns provided Electronic Arts and Warner Music with a big boost. Electronic Arts has mostly held onto those gains, while Warner Music has given some of them back. Either way, we like their prospects for growth despite their competitive markets. Plus, each is priced for new buying.

ELECTRONIC ARTS, $138.13, is a buy. The company (Nasdaq symbol EA; TSINetwork Rating: Extra Risk) (www.ea.com; Shares outstanding: 265.7 million; Market cap: $36.7 billion; Dividend yield: 0.6%) is a developer of video games for play on consoles, PCs, and mobile devices....

2 min read

Pat McKeough

Growth Stocks

Calian grows in the expanding U.K. defence market

With the U.K. looking to increase defence spending to 2.5% of GDP by 2030, Calian is making an acquisition that will position it to win more business there.

CALIAN GROUP, $56.41, is a buy. The company (Toronto symbol CGY; TSINetwork Rating: Extra Risk) (calian.comcalian.com; Shares o/s: 11.9 million; Market cap: $668.7 million; Divd yield: 2.0%) has now completed the acquisition of U.K.-based Mabway for up to $41 million....

1 min read

Pat McKeough

Growth Stocks

Broadridge makes a solid purchase

BROADRIDGE FINANCIAL SOLUTIONS, $199.24, is a buy. The company (New York symbol BR; TSINetwork Rating: Average) (www.broadridge.com; Shares o/s: 118.2 million; Market cap: $23.6 billion; Yield: 1.6%) has announced the acquisition of AdvisorTarget, a provider of data products to asset management and wealth Management firms....

1 min read

Pat McKeough

Growth Stocks

This stock offers limited prospects: Hanesbrands

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:

HANESBRANDS INC., $4.98, (New York symbol HBI; TSINetwork Rating: Extra Risk) (hanes.comhanes.com; Shares o/s: 351.6 million; Market cap: $1.8 billion; No dividends paid) manufactures apparel such as t-shirts, underwear, bras, and sweatshirts under the Hanes, Champion, Maidenform, and Playtex brands....

1 min read

Pat McKeough

Growth Stocks

AI stocks to power your future gains

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:

GEN DIGITAL INC., $23.56, is a buy. The company (Nasdaq symbol GEN; TSINetwork Rating: Extra Risk) (gendigital.com; Shares outstanding: 626.1 million; Market cap: $14.8 billion; Dividend yield: 2.1%) continues to add AI to its products....

2 min read

Pat McKeough

Growth Stocks

QSR builds out team in key market

RESTAURANT BRANDS INTERNATIONAL, $68.87, is a buy. The company (New York symbol QSR; TSI Rating: Average) (www.rbi.com; Shares outstanding: 478.0 million; Market cap: $31.0 billion; Dividend yield: 3.4%) has appointed Patrick Siewert as its Senior Advisor in the Asia-Pacific region....

1 min read

Pat McKeough

Growth Stocks

Adobe jumps as it adds AI to its software

This leading software firm’s shares recently jumped after it posted a bigger-than-expected jump in profits and sales in the latest quarter, and it raised its forecasts. That’s all on top of rising interest in its artificial intelligence products. That has prompted existing customers to spend more and has attracted new ones....

2 min read

Pat McKeough

Growth Stocks

Long-term trends still favour Nutrien

Nutrien’s shares shot up to $148 in April 2022 on a sharp increase in potash prices following Russia’s invasion of Ukraine. The stock is now down 47% as potash supplies and prices stabilize. We still like the company’s long-term outlook, particularly as the world’s rising population and declining arable land per person will require farmers to use more fertilizers to increase their crop yields.

NUTRIEN LTD....

2 min read

Pat McKeough

Growth Stocks

Wider client base gives CAE an edge

CAE’s shares are down 11% since the start of 2024, while Bombardier has jumped 67%. Even so, we still feel CAE is a better choice for long-term gains due to its exposure to a wider range of clientele and types of aircraft.

CAE INC. $26 is still a buy. The company (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 318.1 million; Market cap: $8.3 billion; Price-to-sales ratio: 1.9; Dividend suspended in March 2020; TSINetwork Rating: Average; www.cae.com) is a leading maker of flight simulators for commercial and military aircraft....

2 min read

Pat McKeough

Growth Stocks

New name and better prospects for ShawCor

In 2023, the old ShawCor (now called Mattr) sold its legacy pipeline coating operations and shifted its focus to its liquid storage tank and industrial products businesses. The shift has worked out well for investors—the stock has doubled since the company announced the plan in September 2022....

2 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.