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

IBM is still your better choice

On November 3, 2021, IBM spun off its legacy business focused on helping corporate and government clients manage their datacentres. Investors received one Kyndryl share for every five IBM shares they held.

We still prefer IBM for your new buying, due to its ability to tap into rising client demand for cloud computing and artificial intelligence software....

2 min read

Pat McKeough

Growth Stocks

Keep holding these two spinoffs

On October 16, 2023, the old NCR Corp. (New York symbol NCR) completed its plan to split itself into two separate firms. One (called NCR Atleos) focuses on ATMs, and the other (called NCR Voyix) focuses on digital commerce businesses.

Investors received one share of NCR Atleos for every two NCR shares they held....

2 min read

Pat McKeough

Growth Stocks

Tap into travel trends with these two

The coronavirus pandemic forced the cancellation of most vacation plans. However, the reopening of the economy has spurred strong demand for travel, and both Wyndham, and Travel + Leisure should benefit from that surge. We see each as a buy.

WYNDHAM HOTELS & RESORTS, $78.26, is suitable for your new buying. The company (New York symbol WH; TSINetwork Rating: Extra Risk) (www.wyndhamhotels.com; Shares outstanding: 81.0 million; Market cap: $6.5 billion; Dividend yield: 1.9%) is the world’s largest hotel franchiser, with 851,500 rooms spread across 9,100 hotels with 23 brands in 95 countries.

Wyndham’s revenue in the quarter ended December 31, 2023, fell 3.9%, to $321 million from $324 million a year earlier....

2 min read

Pat McKeough

Growth Stocks

Warner Music targets a major French acquisition

We like Warner Music’s competitive prospects in its niche market—and a big French acquisition would just add to its attractive outlook.

WARNER MUSIC GROUP, $33.20, is a buy. The company (Nasdaq symbol WMG; TSINetwork Rating: Average) (www.wmg.com; Shares outstanding: 515.7 million; Market cap: $17.6 billion; Dividend yield: 2.1%) recently approached Believe SA, a global digital music company headquartered in France, to initiate takeover talks for Believe.

Warner is reportedly willing to make a bid of at least 17 euros ($18.52) per share for Believe, valuing the French digital music company at 1.65 billion euros ($1.8 billion) and topping an earlier takeover bid of 15 euros per share from a consortium of Believe’s largest shareholders.

Home to music labels such as TuneCore, Naïve and Nuclear Blast, Believe was founded in 2005 by Denis Ladegaillerie....

1 min read

Pat McKeough

Growth Stocks

Here are updates on two of our buys: ACI Worldwide & 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:

ACI WORLDWIDE, $31.73, is a buy. The firm (Nasdaq symbol ACIW; TSINetwork Rating: Extra Risk) (Shares outstanding: 106.4 million; Market cap: $3.4 billion; No dividends paid) reported a 5.5% rise in revenue in the quarter ended December 31, 2023, to $476.6 million from $451.8 million a year earlier.

The company made $1.13 a share in the quarter, up 39.5% from $0.81....

2 min read

Pat McKeough

Growth Stocks

Chipotle aims for Gen-Z workers

CHIPOTLE MEXICAN GRILL, $2,722.69, is a buy. The company (New York symbol CMG; TSINetwork Rating: Extra Risk) (Shares outstanding: 27.4 million; Market cap: $74.6 billion; No divid.) is now rolling out new benefits aimed to appeal to its Gen-Z labour pool, which accounts for more than 73% of its restaurant employees....

1 min read

Pat McKeough

Growth Stocks

Innovation spurs these two restaurant stocks

During the pandemic, both Domino’s Pizza and Texas Roadhouse implemented savvy strategies to support their businesses. Now, going forward, we think each is well-positioned to capitalize on its popular offerings to keep attracting customers. Each stock also remains a buy.

DOMINO’S PIZZA, $450.97 (New York symbol DPZ; TSINetwork Rating: Average) (www.dominos.com; Shares o/s: 34.8 million; Market cap: $15.8 billion; Yield: 1.3%), gives you exposure to the world’s largest chain of pizza stores offering takeout and delivery....

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:

BRILLIANT EARTH, $2.56, (Nasdaq symbol BRLT; TSI Rating: Extra Risk) (Shares o/s: 97.1 million; Market cap: $263.0 million; No dividends paid) is a direct-to-consumer retailer that claims to provide customers with what it calls the best in ethically sourced diamonds and other jewellery.

Brilliant Earth operates in a highly competitive jewellery market, although its niche does set it apart....

1 min read

Pat McKeough

Growth Stocks

MP Material hurt by lower prices

MP MATERIALS, $14.05, is still a buy. The company (New York symbol MP; TSINetwork Rating: Extra Risk) (www.mpmaterials.com; Shares o/s: 178.1 million; Market cap: $2.6 billion; No divids.) saw its revenue fall 55.8% in the quarter ended December 31, 2023, to $41.2 million from $93.2 million a year earlier....

1 min read

Pat McKeough

Growth Stocks

Corteva sells into expanding markets

Corteva shares offer investors a number of pluses: Not only is the company at the forefront of key agricultural trends, the stock is a spinoff. Over the years, we’ve found that spinoffs are about as close as you can get to a sure thing in investing. It’s one key reason why we think Corteva has further gains ahead for investors....

2 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.