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.

Read More Close

Growth Stocks Library Archives

Growth Stocks

Sustainable income bolsters their gains

Fair Isaac and Broadridge were well positioned to gain during the pandemic and after it: since March of 2020, Fair Isaac is up 375.3%, and Broadridge has jumped 100.9%. We think both stocks have room to move even higher as product demand remains strong—and growing.

BROADRIDGE FINANCIAL SOLUTIONS, $180.32, is a buy. The company (New York symbol BR; TSINetwork Rating: Average) (www.broadridge.com; Shares outstanding: 117.6 million; Market cap: $21.3 billion; Dividend yield: 1.8%) serves the investment industry in three areas: investor communications, securities processing and transaction clearing.

Broadridge is best known for processing and distributing proxies and regulatory filings for nearly every publicly traded U.S....

2 min read

Pat McKeough

Growth Stocks

This stock offers limited prospects

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:

BLACKBERRY LIMITED, $5.04, (Toronto symbol BB; TSI Rating: Extra Risk) (Shares outstanding: 583.7 million; Market cap: $3.0 billion; No divds.) is a Waterloo-based provider of cybersecurity and Internet of Things (IoT) software.

BlackBerry recently announced that it intends to separate its cybersecurity and IoT businesses into two independent, publicly traded companies....

1 min read

Pat McKeough

Growth Stocks

Thermo Fisher makes a savvy purchase

THERMO FISHER SCIENTIFIC INC., $470.954, is a buy. The company (New York symbol TMO; TSINetwork Rating: Average) (thermofisher.com; Shares o/s: 386.4 million; Market cap: $172.0 billion; Dividend yield: 0.3%) is now buying Olink Holding AB (Nasdaq symbol OLK)....

1 min read

Pat McKeough

Growth Stocks

This restaurant chain stands out for investors

During the pandemic, Texas Roadhouse implemented savvy strategies to support its businesses. Now, as the economy normalizes, we think it’s well-positioned to capitalize on its popular offerings to keep attracting dine-in, pick-up and takeout customers. We recommend this stock as a Power Buy.

TEXAS ROADHOUSE, $110.39, is a buy. The company (Nasdaq symbol TXRH; TSINetwork Rating: Extra Risk) (texasroadhouse.com; Shares outstanding: 66.8 million; Market cap: $7.4 billion; Dividend yield: 2.0%) is a full-service, casual-dining restaurant chain with 722 locations spread across 49 U.S....

2 min read

Pat McKeough

Growth Stocks

FDA spurs Eli Lilly

ELI LILLY & CO., $588.44, is a Power Buy. The company (New York symbol LLY; TSINetwork Rating: Above Average) (www.lilly.com; Shares outstanding: 949.3 million; Market cap: $579.9 billion; Dividend yield: 0.7%) has just gained a major approval from the U.S....

1 min read

Pat McKeough

Growth Stocks

Sale boosts CAE’s long-term prospects

CAE recently agreed to sell its healthcare business, which makes medical-simulators and mannequins for training health professionals. That will let it better focus on its main flight simulator and pilot-training operations, particularly as the global air travel industry will need 1.3 million new pilots, aircraft maintenance technicians and cabin crew over the next 10 years....

2 min read

Pat McKeough

Growth Stocks

Thomson keeps rewarding investors

THOMSON REUTERS CORP. $178 is a buy. The company (Toronto symbol TRI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 455.3 million; Market cap: $81.0 billion; Price-to-sales ratio: 8.7; Dividend yield: 1.5%; TSINetwork Rating: Above Average; www.thomsonreuters.com) continues to wind down its indirect stake in financial information provider Refinitiv....

1 min read

Pat McKeough

Growth Stocks

This transformation is paying off

SHAWCOR LTD. $15 remains a buy for aggressive investors. The company (Toronto symbol MATR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 70.5 million; Market cap: $1.1 billion; Price-to-sales ratio: 0.7; Dividend suspended in March 2020; TSINetwork Rating: Average; www.mattr.com) is now selling most of its pipeline coating business to Tenaris S.A....

1 min read

Pat McKeough

Growth Stocks

Updating our Aggressive stocks

IDEXX LABORATORIES INC. $413 (www.idexx.com) is still a hold. The company makes equipment that veterinarians use to detect diseases in animals. In the past few years, Idexx has benefited from rising pet ownership levels....

1 min read

Pat McKeough

Growth Stocks

Adobe has an AI advantage

ADOBE INC. $521 is buy for aggressive investors. The company (Nasdaq symbol ADBE; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 455.3 million; Market cap: $237.2 billion; Price-to-sales ratio: 13.2; No dividends paid since June 2005; TSINetwork Rating: Average; www.adobe.com) has announced new versions of its generative artificial intelligence (AI) model, Firefly, promising higher-quality images and the ability to produce new types of media.

This new edition was trained on about 70% more images, which should improve the system’s ability to create photo-realistic images....

1 min read

Pat McKeough

Testimonials

The cornerstones of Pat’s strategy–value, diversification and timelines–make his newsletter, The Successful Investor, highly profitable while minimizing risk. His advice is no-nonsense, down-to-earth and based on solid research. You’ll know what to invest in and what to avoid.

Chuck Chakrapani, PhD
Investors Association of Canada
The older I get the better dividends look. For retirees and would-be retirees who want to sleep at night, I can’t think of a better source of information on reliable growing dividend income than Pat McKeough’s newsletter, Dividend Advisor.

Jonathan Chevreau
Financial Post Columnist
As a manager of more than $500 million in mutual funds, I have access to the best brokerage research available in this country. But I still take time to read Pat McKeough’s premium newsletters

John Sartz
I appreciate the 25 years of above market returns I received by following your advice. at least 95% of my investment decisions were based on TSI recommendations.

Chuck J.
Subscriber since 1996. Inner Circle Member Since 2006
The newsletters I receive in Inner Circle Pro are fantastic! I have been following Pat’s advice for years and everything he has said has been amazing. His commentaries are brilliant, insightful, educational, rational and balanced. My returns are almost double the TSE and I have referred many of my friends who have switched over to your services.

Walter H.
Inner Circle Pro subscriber

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.