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

Four ways you can profit from AI

All four of these technology stocks have moved up lately due to investor enthusiasm for their artificial intelligence products. While they look expensive in relation to earnings, we still like their long-term prospects.

ADOBE INC. $606 is buy for aggressive investors. The company (Nasdaq symbol ADBE; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 455.3 million; Market cap: $275.9 billion; Price-to-sales ratio: 14.1; No dividends paid since June 2005; TSINetwork Rating: Average; www.adobe.com) makes software that lets computer users create, edit and share documents in the popular PDF format....

5 min read

Pat McKeough

Growth Stocks

Two U.S. growth stocks with bright prospects

Pandemic lockdowns provided Electronic Arts and Garmin with a big boost. Electronic Arts has mostly held onto those gains, while Garmin has given some of them back. Either way, we like their prospects for growth despite their competitive markets. Plus, each is priced for new buying.

ELECTRONIC ARTS, $136.62, is a buy. The company (Nasdaq symbol EA; TSINetwork Rating: Extra Risk) (www.ea.com; Shares outstanding: 269.0 million; Market cap: $36.9 billion; Dividend yield: 0.6%) is a developer of video games for play on consoles, PCs, and mobile devices....

2 min read

Pat McKeough

Growth Stocks

Fair Isaac’s new scoring system attracts a blue-chip client

Fair Isaac undoubtedly benefited from the pandemic: since March of 2020, the stock is up 375.3%. We think the credit scoring giant has room to move even higher as demand for its products remains strong—and growing.
FAIR ISAAC CORP., $1,230.16, is a buy. The company (New York symbol FICO; TSINetwork Rating: Average) (www.fairisaac.com; Shares outstanding: 24.8 million; Market cap: $30.4 billion; No dividends paid) reports that Cross Country Mortgage, the U.S.’s number three retail mortgage lender, has adopted FICO Score 10 T.

FICO Score 10 T is the company’s newest, and likely its most predictive, scoring model....

1 min read

Pat McKeough

Growth Stocks

DraftKings adds another U.S. state

DRAFTKINGS INC., $35.07, is a buy. The company (Nasdaq symbol DKNG; TSINetwork Rating: Extra Risk) (Shares o/s: 841.7 million; Market cap: $28.9 billion; No dividend) currently provides sports betting in several U.S....

1 min read

Pat McKeough

Growth Stocks

Expedia Group taps into resurgent travel

This new buy for PGI subscribers has a strong competitive position that includes the leading market share in the U.S. Meanwhile, Expedia’s new One Key loyalty program should boost its ability to attract and retain customers. At the same time, Expedia’s geographic diversification helps it weather the volatility of any one market—whether economic, political or weather related....

2 min read

Pat McKeough

Growth Stocks

Three top picks to power your 2024

We have singled out three growth Buys for 2024—ones we believe have exceptional prospects for the year ahead. What’s more, each is a market leader, which cuts your risk if the economic outlook softens.

INTACT FINANCIAL, $201.59, is a #1 Power Buy for 2024. The insurer (Toronto symbol IFC; TSINetwork Rating: Average) (www.intactfc.com; Shares outstanding: 175.3 million; Market cap: $35.6 billion; Dividend yield: 2.2%) provides investors exposure to Canada’s largest property and casualty insurer....

4 min read

Pat McKeough

Growth Stocks

Updating your Aggressive stocks: Toromont, Restaurant Brands & RioCan

TOROMONT INDUSTRIES LTD. $115 (www.toromont.comwww.toromont.com) is a buy. The company distributes bulldozers, backhoe loaders and drills, mainly in eastern Canada and the U.S....

1 min read

Pat McKeough

Growth Stocks

New strategy will drive Stantec even higher

The shares of engineering firm Stantec are up over 50% in the past year and hit a new record high of $108.66 in January 2024. That gain is largely due to increased government spending on infrastructure projects in the wake of the COVID-19 pandemic. The company also announced a new strategic plan, which should further spur its earnings—and your returns—over the next few years.

STANTEC INC....

2 min read

Pat McKeough

Growth Stocks

Two picks for a cyclical upswing

These two firms operate in the highly cyclical real estate industry, which adds risk. However, both are market leaders and continue to make savvy acquisitions. That helps them attract and retain clients during economic slowdowns.

FIRSTSERVICE CORP....

2 min read

Pat McKeough

Growth Stocks

Better efficiency will fuel Metro’s earnings

Ottawa continues to pressure Metro and other major food sellers to lower their selling prices, even though the food inflation rate dropped to 4.7% in November 2023 from 11.4% in November 2022. Even if the government forces it to cut prices, the company’s new automated distribution centres will lower its costs and lift its long-term profitability.

METRO INC....

2 min read

Pat McKeough

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Investors Association of Canada
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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.