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

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:

CANADIAN SOLAR INC., $15.12, (Nasdaq symbol CSIQ; TSI Rating: Extra Risk) (Shares outstanding: 64.6 million; Market cap: $977.3 million; No dividends paid) is one of the world’s largest manufacturers of solar energy and battery storage solutions....

1 min read

Pat McKeough

Growth Stocks

Chipotle splits its stock 50-1

CHIPOTLE MEXICAN GRILL, $2,902.96, is a buy. The company (New York symbol CMG; TSINetwork Rating: Extra Risk) (Shares outstanding: 27.6 million; Market cap: $80.2 billion; No divid.) now plans to split its stock on a 50-for-one basis....

1 min read

Pat McKeough

Growth Stocks

ATS expands its markets and expertise

ATS Corp., based in Cambridge, Ontario, is a new pick for subscribers to Power Growth Investor. The company is at the forefront of the rapidly expanding market for factory automation technology. Part of that is its big move into EV battery assembly systems, as well as industries where reliability and system integrity are key such as food and beverage, and life sciences....

2 min read

Pat McKeough

Growth Stocks

Good moves by EXPE

EXPEDIA GROUP INC., $128.73, is a buy. The company (Nasdaq symbol EXPE; TSINetwork Rating: Average) (www.expediagroup.com; Shares outstanding: 142.6 million; Market cap: $17.5 billion; No dividends paid) operates the world’s largest travel booking platform....

1 min read

Pat McKeough

Growth Stocks

Updating your Aggressive stocks: FirstService, Mattr & Toromont

FIRSTSERVICE CORP. $212 (www.firstservice.com) is a buy. The company provides property management services to businesses and individuals. FirstService tends to fuel its growth with acquisitions of smaller businesses that expand its market share....

1 min read

Pat McKeough

Growth Stocks

Merging divisions should cut costs

MAPLE LEAF FOODS INC. $24 is a hold. The company (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 122.7 million; Market cap: $2.9 billion; Price-to-sales ratio: 0.6; Dividend yield: 3.7%; TSINetwork Rating: Average; www.mapleleaffoods.com) sells fresh and prepared meats under the Maple Leaf and Schneider labels.

Maple Leaf now plans to merge its meat protein and plant-based foods divisions into a single unit....

1 min read

Pat McKeough

Growth Stocks

Stantec has more gains ahead

Engineering firm Stantec is now up roughly 200% since we promoted the company to our Successful Investor Aggressive Growth Portfolio (in the April 2020 issue) from our Power Growth Investor newsletter. That’s mainly because higher government spending on new infrastructure projects is spurring demand for its services....

2 min read

Pat McKeough

Growth Stocks

Updating your Conservative stocks: P&G, Howmet Aerospace & IFF

PROCTER & GAMBLE CO. $162 (www.pg.com) is a buy. The consumer product giant Procter expects its sales in the fiscal year ending June 30, 2024, will rise between 4% and 5%....

1 min read

Pat McKeough

Growth Stocks

Becton poised to gain from weight-loss drugs

Becton Dickinson’s shares hit an all-time high of $280 in July 2023, but have moved down 15% on weaker demand for its COVID-19 testing kits. However, the company should benefit from stronger demand for its syringes due to increasing use of injectable weight-loss drugs like Ozempic....

2 min read

Pat McKeough

Growth Stocks

Canon has a new way to make chips

CANON INC. ADRs $30 remains a hold. The Japanese conglomerate (Over-the-counter Pink Sheets market symbol CAJPY; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.1 billion; Market cap: $33.0 billion; Price-to-sales ratio: 1.1; Dividend yield: 3.1%; TSINetwork Rating: Above Average; www.canon.com) recently developed a new way to manufacture of computer chips.

Called “nanoimprint lithography,” this method stamps chip designs onto silicon wafers instead of carving them using light....

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.