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

Quality problems weigh on Boeing

BOEING CO. $172 remains a hold. The aircraft maker (New York symbol BA; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 613.9 million; Market cap: $105.6 billion; Price-to-sales ratio: 1.4; Dividend suspended in June 2020; TSINetwork Rating: Extra Risk; www.boeing.com) delivered 83 commercial jetliners in the first quarter of 2024, down from 130 a year earlier....

1 min read

Pat McKeough

Growth Stocks

This spinoff needs to cut its debt

WARNER BROS. DISCOVERY INC. $7.66 is still a hold. The company (Nasdaq symbol WBD; Aggressive Growth Portfolio; Consumer sector; Shares outstanding: 2.4 billion; Market cap: $18.4 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

Mondelez pays EU fine

MONDELEZ INTERNATIONAL INC. $67 is a buy. The company (Nasdaq symbol MDLZ; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.4 billion; Market cap: $93.8 billion; Price-to-sales ratio: 2.6; Dividend yield: 2.5%; TSINetwork Rating: Above Average; www.mondelezinternational.com) mainly makes snack foods such as cookies, chocolate bars and gum.

The company has agreed to settle charges by European Union antitrust regulators that it illegally forced retailers to buy its products from local distributors instead of getting them at cheaper prices from other EU countries.

As a result, Mondelez will pay $366 million, which is equal to 28% of the $1.29 billion, or $0.95 a share, that it earned in the first quarter of 2024.

The settlement helps cut the company’s risk....

1 min read

Pat McKeough

Growth Stocks

Slow iPhone sales hurt Apple

APPLE INC. $190 is still a hold. The company (Nasdaq symbol AAPL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 15.3 billion; Market cap: $2.9 trillion; Price-to-sales ratio: 7.8; Dividend yield: 0.5%; TSINetwork Rating: Average; www.apple.com) gets about half of its revenue from iPhone sales....

1 min read

Pat McKeough

Growth Stocks

Motorola hits a new high

MOTOROLA SOLUTIONS INC. $357 is a buy. The company (New York symbol MSI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 166.8 million; Market cap: $59.5 billion; Price-to-sales ratio: 6.0; Dividend yield: 1.1%; TSINetwork Rating: Average; www.motorolasolutions.com) reported 10.0% higher revenue in the first quarter of 2024—$2.39 billion from $2.17 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

AI will fuel Microsoft’s next surge

Over the past 10 years, Microsoft’s shares have soared, rising nearly 950% and far outpacing the 174% gain for the S&P 500 Index.

That impressive climb reflects two main factors. First, the company pivoted from selling its software as a one-time purchase to a cloud-based subscription model on its Azure platform....

5 min read

Pat McKeough

Growth Stocks

We think these two will be healthcare winners

We think the healthcare industry will enjoy great success over the next decade. But due to the nature of the business, results will vary widely and unpredictably from one company to another. A volatile market like the one we expect for healthcare stocks will include winners and losers....

2 min read

Pat McKeough

Growth Stocks

Wyndham targets business travellers to spur its growth

Wyndham is now taking steps to improve how companies book and manage group bookings, meetings, events, and business travel at its North American hotels. That will add to sales and bolster profits.

WYNDHAM HOTELS & RESORTS, $69.95, is a #1 Power Buy for 2024. The company (New York symbol WH; TSINetwork Rating: Extra Risk) (www.wyndhamhotels.com; Shares outstanding: 80.6 million; Market cap: $5.6 billion; Dividend yield: 2.2%) will now offer reward points in its loyalty program to companies that book stays through its just revamped WyndhamBusiness.com.

Before, the loyalty program only benefited guests....

1 min read

Pat McKeough

Growth Stocks

Here are updates on two of your buys: Corteva & Garmin

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:

CORTEVA INC., $57.13, is a buy. The company (New York symbol CTVA; TSINetwork Rating: Extra Risk) (www.corteva.com; Shares outstanding: 697.0 million; Market cap: $39.8 billion; Dividend yield: 1.1%) is a leading developer of new seeds and crop chemicals including herbicides and insecticides for the agriculture industry.

In the quarter ended March 31, 2024, revenue fell 8.0%, to $4.49 billion from $4.88 billion a year earlier....

2 min read

Pat McKeough

Growth Stocks

Chipotle axes its new concept

CHIPOTLE MEXICAN GRILL, $3,168.30, is a buy. The company (New York symbol CMG; TSINetwork Rating: Extra Risk) (Shares outstanding: 27.5 million; Market cap: $87.0 billion; No dividends paid) launched a new restaurant spinoff early last year called Farmesa that featured “California-inspired” bowls....

1 min read

Pat McKeough

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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.