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

Low-end lender only for the aggressive

ACE CASH EXPRESS INC. $25 (Nasdaq symbol AACE; WSSF Rating: Speculative) has agreed to pay $36 million for 111 Popular Cash Express stores. That will give it about 1,500 stores that offer check cashing, loans-till-payday and other financial services. ACE also plans to spend $5 million over two years on store upgrades. The purchase should add $0.28 a share to ACE’s annual earnings. To put that in perspective, ACE earned $0.21 a share (total $2.9 million) in its first fiscal quarter ended September 30, 2005, down 43.2% from $0.37 a share ($5.1 million) a year earlier. However, the most recent earnings included $0.07 a share in Hurricane Katrina writedowns and losses. Revenue rose 6.8%, to $66.2 million from $62.0 million. ACE Cash Express is a buy, but only for aggressive investors.

1 min read

Pat McKeough

Growth Stocks

Heinz aims to return to growth

Investing mainly in well-established companies is one of the three cornerstones of our investing philosophy (the other two are spreading your money out across the five main economic sectors, and focussing on investments that are outside the current media/broker limelight). Well-established companies generate enormous gains over periods that stretch into decades. But their pace of growth varies. They can and often do swing back and forth between stagnation and explosive growth. But even during lackluster times, they build their potential for gain, and pay dividends. H.J. HEINZ COMPANY $35 (New York symbol HNZ; WSSF Rating: Above average) rose more than 25-fold from the early 1980s through 1998. In the next couple of years, it dropped by nearly half. It has spent much of the current decade between $30 and $40. Its next big move is likely to be upward....

4 min read

Pat McKeough

Growth Stocks

Stick with Fair Isaac

I still haven’t come across anything to beat FAIR ISAAC INC. $44 (New York symbol FIC; WSSF Rating: Average), our “Stock of the Year” for aggressive investors in 2005. So for now, we’ll let Fair Isaac hang on to the Stock of the Year title for 2006. Our Stocks of the Year, particularly Symantec (Nasdaq symbol SYMC) from 2000-2003 and Autodesk (Nasdaq symbol ADSK) in 2004, have produced great gains for us, averaging 61.6% in the past five years. This record may lead some readers to overindulge in our choice for 2006. Unfortunately, in the stock market, nobody gets it right every time. Our most widely followed stock of the year may turn out to be the one that disappoints....

1 min read

Pat McKeough

Growth Stocks

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Searchable versions of your newsletter are not yet available for the dates you’ve selected. In the meantime, we have posted complete issues, in PDF format, for your convenience. Best regards, TSI Network

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Pat McKeough

Growth Stocks

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Pat McKeough

Growth Stocks

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Pat McKeough

Growth Stocks

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Pat McKeough

Growth Stocks

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Pat McKeough

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Pat McKeough

Growth Stocks

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Pat McKeough

Testimonials

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Investors Association of Canada
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Subscriber since 1996. Inner Circle Member Since 2006
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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.