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

Spinoff will unlock Baxter’s value

Medical device maker Baxter will soon spin off its kidney care business as a separate firm. That should help unlock some of its value, in part because the stock market finds it easier to value “pure-play” firms that focus on a single business. Longer-term, the new Baxter should also benefit from an aging population and the shift to tele-medicine.

BAXTER INTERNATIONAL INC....

2 min read

Pat McKeough

Growth Stocks

Three more updates to protect your returns

NEWELL BRANDS INC. $7.04 remains a hold. The company (Nasdaq symbol NWL; Aggressive Growth and Income Portfolios, Consumer sector; Shares outstanding: 414.3 million; Market cap: $2.9 billion; Price-to-sales ratio: 0.4; Dividend yield: 4.0%; TSINetwork Rating: Average; www.newellbrands.com) makes a wide range of consumer and household products such as PaperMate pens, Elmer’s glue, Rubbermaid food containers, Graco baby strollers, Coleman camping gear and Oster kitchen appliances.

Under a new restructuring plan, Newell is shifting its focus to its most-profitable 25 brands and top 10 countries, which represent about 90% of sales....

2 min read

Pat McKeough

Growth Stocks

R&D improves FICO scores

FAIR ISAAC CORP. $1,193 remains a buy for highly aggressive investors. The company (New York symbol FICO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 24.9 million; Market cap: $29.7 billion; Price-to-sales ratio: 19.4; Dividend suspended June 2017; TSINetwork Rating: Average; www.fico.com) spends a high 11% on developing new products.

Thanks to those investments, the company recently launched its FICO Score 10 T scoring model....

1 min read

Pat McKeough

Growth Stocks

Adobe bulks up its AI products

ADOBE INC. $477 remains a buy for aggressive investors. The software maker (Nasdaq symbol ADBE; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 448.0 million; Market cap: $213.7 billion; Price-to-sales ratio: 10.9; No dividends paid since June 2005; TSINetwork Rating: Average; www.adobe.com) is now buying videos to build its artificial intelligence (AI) text-to-video generator; the aim is to catch up to competitors after OpenAI demonstrated a similar technology....

1 min read

Pat McKeough

Growth Stocks

New menu items should boost sales

YUM CHINA HOLDINGS INC. $39 is a buy for aggressive investors. The company (New York symbol YUMC; Consumer Sector; Shares outstanding: 391.0 million; Market cap: $15.2 billion; Price-to-sales ratio: 1.5; Dividend yield: 1.6%; TSINetwork Rating: Average; www.yumchina.com) is China’s largest fast-food operator with over 14,000 outlets, mainly under the KFC and Pizza Hut banners.

The stock is down 9% since the start of 2024 due to China’s slowing economic growth, particularly in larger cities with rising housing costs....

1 min read

Pat McKeough

Growth Stocks

Danaher is off to a good start in 2024

DANAHER CORP. $250 is a buy for aggressive investors. The company (New York symbol DHR; Aggressive Growth Portfolio; Manufacturing & Industry sector; Shares outstanding 738.9 million; Market cap: $184.7 billion; Price-to-sales ratio: 8.0; Dividend yield: 0.4%; TSINetwork Rating: Above Average; www.danaher.com) spun off its Environmental products division as Veralto Corp....

1 min read

Pat McKeough

Growth Stocks

Tech will help drive Walmart higher

In the past few years, Walmart has built up its e-commerce retailing platforms as more consumers embrace online shopping. That includes making it easier for customers to order products online and pick them up at a nearby store.

As part of that strategy, Walmart recently agreed to buy consumer electronics manufacturer Vizio....

4 min read

Pat McKeough

Growth Stocks

Here are updates on two of our buys: Regeneron & Broadridge

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:

REGENERON PHARMACEUTICALS, $901.19, is a buy. The company (Nasdaq symbol REGN; TSINetwork Rating: Average) (www.regeneron.com; Shares o/s: 107.9 million; Market cap: $98.9 billion; No divds.) reports that in the quarter ended December 31, 2023, its revenue rose 0.6%, to $3.43 billion from $3.41 billion a year earlier....

2 min read

Pat McKeough

Growth Stocks

Calian expands in nuclear services

CALIAN GROUP, $55.49, is a buy. The company (Toronto symbol CGY; TSINetwork Rating: Extra Risk) (calian.com; Shares o/s: 11.8 million; Market cap: $656.7 million; Dividend yield: 2.0%) has completed a transaction with MDA Ltd (symbol MDA on Toronto) to purchase assets associated with MDA’s nuclear services.

Calian Nuclear has been serving the Canadian and international markets for over 25 years....

1 min read

Pat McKeough

Growth Stocks

Two tech stocks with bright prospects ahead

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

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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.