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

IFF aims to cut its debt

INTERNATIONAL FLAVORS & FRAGRANCES INC. $77 remains a buy for long-term gains. The company (New York symbol IFF; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 255.3 million; Market cap: $19.7 billion; Price-to-sales ratio: 1.8; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.iff.com) makes compounds that improve the taste of food and the smell of consumer products.

Due to slowing volumes as its customers use up their existing inventories and the negative impact of rising interest rates, IFF wrote down the value of recent acquisitions by $2.6 billion.

If you exclude that charge and other unusual item, IFF’s earnings in the three months ended December 31, 2023, fell 29.0%, to $0.22 a share (or a total of $56 million) from $0.31 a share (or $78 million) a year earlier....

1 min read

Pat McKeough

Growth Stocks

These top picks target key medical needs

The pandemic presented both of these firms with unique challenges. However, each remained profitable and is well positioned to keep prospering as the economy rebounds. Trends now underway—as well as the strong position of these firms in key markets—will power their gains....

2 min read

Pat McKeough

Growth Stocks

Boston Scientific adds to its strong device pipeline

Boston Scientific continues to add to its portfolio of medical devices used in minimally invasive procedures. The latest purchase lets it move into a new area, and bodes well for the stock’s outlook. We still see Boston Scientific as an attractive buy.

BOSTON SCIENTIFIC, $65.95, is a buy. The company (New York symbol BSX; TSINetwork Rating: Average) (bostonscientific.com; Shares o/s: 1.5 billion; Market cap: $95.2 billion; No divds.) recently announced the acquisition of Axonics Inc....

1 min read

Pat McKeough

Growth Stocks

Here are updates on two of our buys: Merck & Expedia

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. These buys that stand out this month:

MERCK & CO....

2 min read

Pat McKeough

Growth Stocks

Two niche stocks set to reward investors

Gen Digital and Warner Music soared during the pandemic but have now given up some of those gains. We still like their competitive prospects in their niche markets, and each stock is especially attractive for new buying right now.

GEN DIGITAL INC., $21.20, is a buy. The company (Nasdaq symbol GEN; TSINetwork Rating: Extra Risk) (gendigital.com; Shares outstanding: 636.9 million; Market cap: $13.6 billion; Dividend yield: 2.4%) changed its name from NortonLifeLock (old symbol NLOK) following its September 2022 acquisition of European cybersecurity firm Avast plc for $8.1 billion

Gen is now the parent company for several security-related consumer brands, including Norton, LifeLock, and Avast, in addition to Avira, AVG, and CCleaner.

The company continues to attract new customers....

2 min read

Pat McKeough

Growth Stocks

This stock offers limited prospects: Canadian Solar

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., $23.21, (Toronto symbol AD.UN; TSI Rating: Extra Risk) (Shares o/s: 64.6 million; Market cap: $1.4 billion; No dividends paid) is one of the world’s largest manufacturers of solar energy and battery storage solutions.

In the quarter ended September 30, 2023, revenue fell 4.5%, to $1.85 billion from $1.93 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

Fast-food leaders with more growth ahead

With the outbreak of COVID-19, shares of Chipotle and Restaurant Brands dropped alongside the market. But the two fast-food giants used smart strategies to support their businesses during the pandemic. Both are trading at all-time highs for our subscribers—and we think they still have further gains ahead....

2 min read

Pat McKeough

Growth Stocks

PagerDuty may draw a takeover bid

PAGERDUTY INC., $24.54, is a buy. The company (New York symbol PD; TSINetwork Rating: Extra Risk) (www.pagerduty.com; Shares outstanding: 91.9 million; Market cap: $2.2 billion; No dividends paid) jumped recently on a report that the software maker is evaluating its options amid takeover interest from private equity firms....

1 min read

Pat McKeough

Growth Stocks

Key acquisitions will spur Thermo Fisher

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

ADT exits solar

ADT INC., $6.78, is a buy. The company (New York symbol ADT; TSINetwork Rating: Extra Risk) (adt.com; Shares outstanding: 867.1 million; Market cap: $6.1 billion; Dividend yield: 3.2%) is a leading provider of monitored security products and services to customers in the U.S.

In December 2021, the company acquired Sunpro Solar for $825 million....

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.