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

High R&D spending keeps them on top

PagerDuty and Twilio were well positioned to gain during the pandemic, but since early 2021 they have dropped along with many other tech/platform stocks. Still, we think both have room to rebound as their services continue to experience strong and growing demand....

2 min read

Pat McKeough

Growth Stocks

This stock offers limited prospects: Boat Rocker Media

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:

BOAT ROCKER MEDIA INC., $0.93, (Toronto symbol BRMI; TSINetwork Rating: Speculative) (boatrocker.com; Shares o/s: 32.9 million; Market cap: $53.6 million; No dividends paid) creates, develops, produces, and distributes scripted, unscripted and animated television content around the world....

1 min read

Pat McKeough

Growth Stocks

AI helps fuel Broadridge’s bright future

Broadridge profits from its recurring fee-based revenue and its leading position in proxy and other investor communication services. The company’s dominance in providing a wide range of back-office services, plus its high-quality clientele, also helps cut its risk....

2 min read

Pat McKeough

Growth Stocks

Shopify merchants can now join Target Plus

Shopify merchants now have a new way for their brands to reach millions of new customers and ultimately grow their businesses. That’s just one more reason we see the stock as a buy.

SHOPIFY, $88.71, remains a buy. The company (Toronto symbol SHOP; TSINetwork Rating: Extra Risk) (www.shopify.ca; Shares outstanding: 1.2 billion; Market cap: $122.8 billion; No dividends paid) reports that Target Corp....

1 min read

Pat McKeough

Growth Stocks

Gen Digital is a cybersecurity leader

Gen Digital’s shares jumped in early May 2024 (and have kept rising) when it reported stronger results in the latest quarter and boosted its stock-buyback authorization. As well, the company has attracted further investor interest with its artificial intelligence (AI) initiatives....

2 min read

Pat McKeough

Growth Stocks

Updating your Aggressive stocks: Saputo, Restaurant Brands & RioCan REIT

SAPUTO INC. $31 (www.saputo.com) is a hold. The company is Canada’s largest producer of milk and other dairy products. It also operates dairies in the U.S., Australia, the U.K....

1 min read

Pat McKeough

Growth Stocks

Maple Leaf plans a breakup

MAPLE LEAF FOODS INC. $25 is a hold. The company (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 122.8 million; Market cap: $3.1 billion; Price-to-sales ratio: 0.6; Dividend yield: 3.5%; TSINetwork Rating: Average; www.mapleleaffoods.com) plans to spin off its pork processing business as a separate firm....

1 min read

Pat McKeough

Growth Stocks

Updating your Conservative stocks: ABB, Canon & Gannett

ABB LTD. ADRs $55 (www.abb.com) remains a buy. This Swiss-based company is a leading maker of electrical transformers, transmission systems and circuit breakers for electrical utilities....

1 min read

Pat McKeough

Growth Stocks

Carrier aims to cut its debt

CARRIER GLOBAL CORP. $63 is a buy. The company (New York symbol CARR; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 901.0 million; Market cap: $56.8 billion; Price-to-sales ratio: 2.4; Dividend yield: 1.2%; TSINetwork Rating: Average; www.carrier.com) is a leading maker of heating, ventilation and air conditioning (HVAC) equipment.

Carrier is now shifting its focus to its main HVAC business....

1 min read

Pat McKeough

Growth Stocks

Here are three key updates on your portfolio: Philips Electronics, State Street & NCR Voyix

PHILIPS ELECTRONICS N.V. ADRs $26 is a hold. The company (New York symbol PHG; Conservative Growth Portfolio, Manufacturing sector; ADRs outstanding: 906.3 million; Market cap: $23.6 billion; Price-to-sales ratio: 2.4; Dividend suspended in 2024; TSINetwork Rating: Average; www.philips.com) has finalized the terms of an agreement with the U.S....

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.