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

Snap-On faces two challenges

SNAP-ON INC. $283 is a hold. The company (New York symbol SNA; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 52.9 million; Market cap: $15.0 billion; Price-to-sales ratio: 3.3; Dividend yield: 2.3%; TSINetwork Rating: Average; www.snapon.com) continues to see strong demand from independent garage operators for its tools as rising interest rates and inflation prompt more people to fix their older cars instead of buying new ones.

In the first quarter of 2023, Snap-On’s revenue (excluding financial services) rose 7.8%, to $1.18 billion from $1.08 billion a year earlier....

1 min read

Pat McKeough

Growth Stocks

Acquisitions set them up for post-Covid gains

In April 2020, Raytheon Technologies Corp. (New York symbol RTX) spun off Carrier and Otis as separate companies. For each share they held, investors received 0.5 of a share in Otis and 1 share in Carrier.

So far, Carrier has soared over 190%, while Otis has gained an impressive 85%....

2 min read

Pat McKeough

Growth Stocks

Higher costs could slow their earnings

The shares of Boeing and Howmet have jumped about 50% in the past year as the easing of COVID-19 travel restrictions spurs demand for new aircraft. However, ongoing supply chain issues and rising costs for materials and labour will likely hold back earnings growth.

BOEING CO....

2 min read

Pat McKeough

Growth Stocks

Purchase boosts customer confidence

EBAY INC. $45 is a buy. The company (Nasdaq symbol EBAY; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 534.5 million; Market cap: $24.1 billion; Price to-sales ratio: 2.4; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.ebay.com) operates e-commerce websites, in over 190 countries, where sellers pay fees to auction items or offer them at fixed prices.

eBay has agreed to pay an undisclosed sum for Certilogo....

1 min read

Pat McKeough

Growth Stocks

Cutting-edge tech adds to their appeal

PagerDuty and Twilio were well positioned to gain during the pandemic, but since early 2021 they have dropped along with most other tech/platform stocks. Still, we think both have room to rebound as their services continue to experience strong, and growing, demand....

2 min read

Pat McKeough

Growth Stocks

Amazon aims to boost its entertainment revenue

Amazon continues to make moves to keep building its ad business and generate more revenue from entertainment. We think these will pay off for the company, and its shareholders.

AMAZON.COM INC., $126.42, is a buy. The company (Nasdaq symbol AMZN; TSINetwork Rating: Average) (www.amazon.com; Shares outstanding: 10.3 billion; Market cap: $1.2 trillion; No dividends paid) is now reportedly planning to launch an ad-supported tier of its Prime Video streaming service.

Advertising has been an area of continued growth for Amazon despite worries about an economic slowdown....

1 min read

Pat McKeough

Growth Stocks

Wyndham rises on buyout reports

WYNDHAM HOTELS & RESORTS, $70.14 (New York symbol WH; TSINetwork Rating: Extra Risk) (www.wyndhamhotels.com; Shares outstanding: 85.9 million; Market cap: $6.1 billion; Dividend yield: 2.0%) jumped recently on reports that Choice Hotels International (symbol CHH on New York) is seeking to buy the company. Both companies cater primarily to budget-conscious consumers on the road for leisure or extended work trips....

1 min read

Pat McKeough

Growth Stocks

This stock offers limited prospects

You should remain wary of stocks that attract broker/media praise for their 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:

ASCENT SOLAR TECHNOLOGIES, $0.12, (Nasdaq symbol ASTI; TSINetwork Rating: Speculative) (www.ascentsolar.com; Shares outstanding: 49.9 million; Market cap: $6.4 million; No dividends paid) provides thin-film solar panels for installations that don’t allow for a rigid product....

1 min read

Pat McKeough

Growth Stocks

WELL Health makes an acquisition

WELL HEALTH TECHNOLOGIES, $5.06, is a buy. The company (Toronto symbol WELL; TSINetwork Rating: Speculative) (www.well.company; Shares o/s: 229.1 million; Market cap: $1.2 billion; No dividends paid) is now buying five primary-care clinics in Calgary from MCI Onehealth Technologies for $2.0 million.

The acquisition will bring over 50 physicians into the WELL Health network, adding to the company’s over 3,000 providers across North America....

1 min read

Pat McKeough

Growth Stocks

DraftKings has lots of room for growth

DraftKings soared during the pandemic, but has now given up most of those gains. We still like its competitive business model, which remains intact, and the affordable shares are especially attractive for new buying right now. The stock is a Power Buy.

DRAFTKINGS INC., $25.27, is a buy. The company (Nasdaq symbol DKNG; TSINetwork Rating: Extra Risk) (www.draftkings.com; Shares outstanding: 841.7 million; Market cap: $22.4 billion; No dividend) currently provides sports betting in several U.S....

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.