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

These two have lots of room for growth

DraftKings 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.

DRAFTKINGS INC., $37.43, is a buy. The company (Nasdaq symbol DKNG; TSINetwork Rating: Extra Risk) (www.draftkings.com; Shares outstanding: 841.7 million; Market cap: $32.2 billion; No dividend) currently provides sports betting in several U.S....

2 min read

Pat McKeough

Growth Stocks

Russel Metals hits new all-time highs for our subscribers

Russel Metals was hurt by the decline in economic activity due to the pandemic. But the stock has recovered—and in fact, is now hitting new all-time highs. Meanwhile, it offers a high, sustainable yield.

RUSSEL METALS, $43.06, is a buy. The company (Toronto symbol RUS; TSINetwork Rating: Extra Risk) (www.russelmetals.comwww.russelmetals.com; Shares o/s: 60.8 million; Market cap: $2.6 billion; Dividend yield: 3.7%) has just agreed to acquire seven service-centre locations from Samuel, Son & Co....

1 min read

Pat McKeough

Growth Stocks

Popeye’s targets chicken wings

RESTAURANT BRANDS INTERNATIONAL, $74.49, is a buy. The company (New York symbol QSR; TSI Rating: Average) (www.rbi.com; Shares outstanding: 478.0 million; Market cap: $33.3 billion; Dividend yield: 3.0%) will now see its Popeyes chain add chicken wings permanently as a menu item....

1 min read

Pat McKeough

Growth Stocks

Goodyear may sell off some units

GOODYEAR TIRE & RUBBER, $14.53, is a buy. The manufacturer (Nasdaq symbol GT; TSINetwork Rating: Extra Risk) (Shares outstanding: 283.5 million; Market cap: $4.1 billion; No dividends paid) is now exploring strategic alternatives for some of its operating units to streamline its product portfolio—as part of its agreement with activist investor Elliott Management.

Goodyear’s goal is to raise more than $2 billion in proceeds....

1 min read

Pat McKeough

Growth Stocks

Alcon taps into key global eyecare trends

Swiss pharmaceutical giant Novartis spun off Alcon in 2019. As we’ve said many times before, spinoffs are the closest thing you can find to a sure thing, regardless of the market’s rise and fall. Moreover, trends now underway—as well as Alcon’s strong position in its key markets—will drive future gains for this Power Buy.

ALCON, $75.04, is a buy. The firm (New York symbol ALC; TSINetwork Rating: Extra Risk) (www.alcon.com; Shares outstanding: 499.7 million; Market cap: $37.1 billion; Dividend yield 0.3%) is the world’s biggest eye-care company....

2 min read

Pat McKeough

Growth Stocks

Merck boosts its prospects in neuroscience

Merck continues to make savvy acquisitions to expand its pipeline and stay ahead of rivals. Pharma inneuroscience is a promising field, and Merck’s latest purchase should accelerates its growth in this area.

MERCK & CO. INC., $106.34, is a buy. The drugmaker (New York symbol MRK; TSINetwork Rating: Above Average) (www.merck.comwww.merck.com; Shares outstanding: 2.5 billion; Market cap: $271.4 billion; Dividend yield: 3.0%) has agreed to buy Caraway Therapeutics for up to $610 million.

Launched five years ago, Caraway specializes in studying the waste disposal mechanisms of cells....

1 min read

Pat McKeough

Growth Stocks

Good moves by ATD

ALIMENTATION COUCHE-TARD, $77.28, is a buy. This retailer (Toronto symbol ATD; TSINetwork Rating: Average) (couchetard.com; Shares outstanding: 963.6 million; Market cap: $74.5 billion; Dividend yield: 0.9%) continues to boost your returns through dividends and share buybacks.

The company keeps aggressively repurchasing its shares, which helps increase your share price....

1 min read

Pat McKeough

Growth Stocks

ATS sells into expanding markets

ATS Corp., based in Cambridge, Ontario, is a new pick for subscribers to Power Growth Investor. The company is at the forefront of the rapidly expanding market for factory automation technology. Part of that is its big move into EV battery assembly systems, as well as industries where reliability and system integrity are key such as food and beverage, and life sciences....

2 min read

Pat McKeough

Growth Stocks

Cost cuts will lift Telus earnings

TELUS INTERNATIONAL (CDA) INC. $10 remains a buy for aggressive investors. The operator of call centres (Toronto symbol TIXT; Aggressive Growth Portfolio; Manufacturing sector; Shares outstanding: 274.0 million; Market cap: $2.7 billion; Price-to-sales ratio: 0.8; No dividend paid; TSINetwork Rating: Average; www.telusinternational.com) paid $1.17 billion in January 2023 for 86% of WillowTree (all amounts except share price and market cap in U.S....

1 min read

Pat McKeough

Growth Stocks

Use our updates to enhance your portfolio: ATCO, Bombardier & SNC-Lavalin

ATCO LTD. (class I non-voting) is a buy. The company (Toronto symbols ACO.X [class I non-voting] $38 and ACO.Y [class II voting] $38; Income Portfolio, Utilities sector; Shares outstanding: 113.4 million; Market cap: $4.3 billion; Price-to sales ratio: 0.9; Dividend yield: 5.0%; TSINetwork Rating: Above Average; www.atco.com) gets 80% of its revenue from its stake in Canadian Utilities Ltd....

2 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.