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

GE’s recent spinoff is the better pick here

We’ve long told our readers that spinoffs are a great way for companies to unlock hidden value for their shareholders. A recent example is General Electric, which is breaking up into three smaller firms. GE is now up 35% since it announced that plan in November 2021; its new spinoff GE HealthCare has gained 20%....

2 min read

Pat McKeough

Growth Stocks

Record backlog cuts your risk

MOTOROLA SOLUTIONS INC. $278 is a buy. The company (New York symbol MSI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 167.0 million; Market cap: $46.4 billion; Price-to-sales ratio: 4.9; Dividend yield: 1.3%; TSINetwork Rating: Average; www.motorolasolutions.com) makes communications equipment such as two-way radios for police and fire vehicles, as well as high-definition surveillance systems....

1 min read

Pat McKeough

Growth Stocks

Keysight will rebound

KEYSIGHT TECHNOLOGIES INC. $130 is still a buy for aggressive investors. The company (New York symbol KEYS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 177.8 million; Market cap: $23.1 billion; Price-to-sales ratio: 4.1; No dividend paid; TSINetwork Rating: Average; www.keysight.com) makes an array of devices for testing electronic equipment.

The stock dropped 10% recently on concerns that China’s slowing economy will hurt demand for its communication and chip testing equipment....

1 min read

Pat McKeough

Growth Stocks

Microsoft’s bet on AI is paying off

In January 2023, Microsoft increased its investment in OpenAI. That’s the start-up firm behind ChatGPT, which uses artificial intelligence (AI) software to interact with users in a conversational way and produce human-like written responses. The company has not yet revealed the size of this investment, but media reports suggest it was $10 billion.

Since then, Microsoft stock has jumped 36% on the expectation the company will use this AI technology to greatly improve the performance of its Azure cloud computing platform and its Bing search engine.

Microsoft also stands to gain from its upcoming acquisition of video game maker Activision Blizzard....

4 min read

Pat McKeough

Growth Stocks

Two financial services stocks to buy now

Fair Isaac and Broadridge were well positioned to gain during the pandemic and after it: since March of 2020, Fair Isaac is up 304.3%, and Broadridge has jumped 101.9%. We think both stocks have room to move even higher as product demand remains strong—and growing.

FAIR ISAAC CORP., $848.80, is a buy. The company (New York symbol FICO; TSINetwork Rating: Average) (www.fairisaac.com; Shares outstanding: 24.9 million; Market cap: $21.7 billion; No dividends paid) is best known for its FICO Scores software....

2 min read

Pat McKeough

Growth Stocks

Calian continues to expand in this big market

Calian has had great success in Canada—and the company’s focus on secure Canadian government contracts continues to pay off. Meanwhile, Calian is now expanding further into the big U.S. market.

CALIAN GROUP, $52.22, is a buy. The company (Toronto symbol CGY; TSINetwork Rating: Extra Risk) (calian.com; Shares outstanding: 11.8 million; Market cap: $631.0 million; Dividend yield: 2.1%) has now completed its purchase of the assets of U.S.-based Hawaii Pacific Teleport....

1 min read

Pat McKeough

Growth Stocks

Here are updates on two of our buys

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:

THERMO FISHER SCIENTIFIC INC., $528.87, is a buy. The company (New York symbol TMO; TSINetwork Rating: Average) (thermofisher.com; Shares o/s: 385.9 million; Market cap: $206.3 billion; Dividend yield: 0.3%) is a leading maker of scientific instruments, laboratory equipment, diagnostic consumables, and life science reagents.

In the quarter ended July 1, 2023, Thermo Fisher’s revenue fell 2.6%, to $10.69 billion from $10.97 billion a year earlier....

2 min read

Pat McKeough

Growth Stocks

Wyndham expands in the U.K.

WYNDHAM HOTELS & RESORTS, $75.02 (New York symbol WH; TSINetwork Rating: Extra Risk) (www.wyndhamhotels.com; Shares outstanding: 84.3 million; Market cap: $6.4 billion; Dividend yield: 1.9%) continues to add new hotels; the latest is a collaboration with Roadchef, one of the U.K.’s leading motorway service area operators, for the opening of the Super 8 hotel by Wyndham Chester East in the U.K.

The opening of the hotel marks the Super 8 brand’s first property in the U.K....

1 min read

Pat McKeough

Growth Stocks

Popular niches offer you future gains

Electronic Arts and Warner Music soared during the pandemic but have now given up some of those gains. Still, we like their prospects in their competitive niche markets, and each is well-priced for new buying.

WARNER MUSIC GROUP, $33.61, is a buy. Through your shares (Nasdaq symbol WMG; TSINetwork Rating: Average) (www.wmg.com; Shares outstanding: 515.7 million; Market cap: $17.0 billion; Dividend yield: 2.0%) you benefit from the growth of one of the world’s leading music entertainment companies....

2 min read

Pat McKeough

Growth Stocks

Gen Digital adds AI to Norton

GEN DIGITAL INC., $20.47, is a buy. The company’s (Nasdaq symbol GEN; TSINetwork Rating: Extra Risk) (gendigital.com; Shares outstanding: 661.0 million; Market cap: $13.1 billion; Dividend yield: 2.4%) Norton subsidiary has now introduced an AI-powered mobile application and web-based service....

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.