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 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

Growth Stocks

Here’s our Power Recommendation Portfolio for September 2024

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

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

1 min read

Pat McKeough

Growth Stocks

Here are updates on two of your buys: Shopify & Walt Disney Co.

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:

SHOPIFY, $103.54, remains a buy. The company (Toronto symbol SHOP; TSINetwork Rating: Extra Risk) (www.shopify.ca; Shares outstanding: 1.2 billion; Market cap: $133.4 billion; No dividends paid) continues to attract merchants to its platform....

2 min read

Pat McKeough

Growth Stocks

Expedia launches credit cards

EXPEDIA GROUP INC., $133.19, is a Power Buy. The company (Nasdaq symbol EXPE; TSINetwork Rating: Average) (www.expediagroup.com; Shares outstanding: 142.6 million; Market cap: $17.6 billion; No dividends paid) has announced a multiyear agreement with Wells Fargo and Mastercard to launch two new co-brand...

1 min read

Pat McKeough

Growth Stocks

These fintechs keep winning new business

ACI Worldwide and Fair Isaac have winning business models, especially in today’s expanding financial markets. We believe that will lead to strong growth in future years. Both are hitting new highs, but we still see them as buys.

ACI WORLDWIDE, $48.08, is a buy. The firm (Nasdaq symbol ACIW; TSINetwork Rating: Extra Risk) (Shares o/s: 104.7 million; Market cap: $5.0 billion; No dividends paid) is the leading software provider for processing transactions by credit cards, debit cards, automated teller machines, point-of-sale terminals and interbank systems....

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:

POLLARD BANKNOTE, $22.00, (Toronto symbol PBL; TSINetwork Rating: Extra Risk) (pollardbanknote.com; Shares o/s: 27.1 million; Market cap: $595.2 million; No divids.) is a Winnipeg-based specialty printer, and lottery and charitable gaming product provider....

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.