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

Consumers still trust their leading brands

The overall U.S. inflation rate for the year ended April 2023, was 4.9%. However, the rise in grocery prices was even steeper at 7.1%. That’s because foodmakers have raised their selling prices to offset higher ingredient and other costs.

Those higher selling prices, along with better cost controls, are fuelling strong earnings gains at these three foodmakers....

4 min read

Pat McKeough

Growth Stocks

This acquisition is paying off

GEN DIGITAL INC. $17 is a buy. The company (Nasdaq symbol GEN; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 639.1 million; Market cap: $10.9 billion; Price-to-sales ratio: 3.2; Dividend yield: 2.9%; TSINetwork Rating: Average; www.gendigital.com) changed its name from NortonLifeLock Inc....

1 min read

Pat McKeough

Growth Stocks

Alphabet is a leader in AI and a buy

Artificial intelligence (AI) has made huge strides in the past few years. The public launch of online chatbot ChatGPT, which uses artificial intelligence (AI) software to interact with users in a conversational way and produce human-like written responses, highlights that progress.

A great way to tap into this new technology is with Alphabet, the parent company of Google....

5 min read

Pat McKeough

Growth Stocks

Leading-edge products add to their appeal back units

We think the healthcare industry will enjoy great success over the next decade. But due to the nature of the business, results will vary widely and unpredictably from one company to another. A volatile market like the one we expect for healthcare stocks will include winners and losers....

2 min read

Pat McKeough

Growth Stocks

Here are updates on two of your 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:

RESMED INC., $223.97, is a buy. The company (New York symbol RMD; TSINetwork Rating: Average) (www.resmed.com; Shares outstanding: 146.9 million; Market cap: $33.6 billion; Dividend yield: 0.8%) helps investors tap the growing market for medical devices used to treat sleep apnea....

1 min read

Pat McKeough

Growth Stocks

Chipotle wins its lawsuit

CHIPOTLE MEXICAN GRILL, $2,062.01, is a buy. The company (New York symbol CMG; TSINetwork Rating: Extra Risk) (www.chipotle.com; Shares outstanding: 27.6 million; Market cap: $43.9 billion; No dividends paid.) has quickly won its lawsuit for trademark infringement against fast-casual restaurant chain Sweetgreen Inc.

Sweetgreen renamed its newest menu item, the “Chipotle Chicken Burrito Bowl,” just two days after Chipotle sued the chain....

1 min read

Pat McKeough

Growth Stocks

Travel rebound spurs these two leaders

The coronavirus pandemic forced the cancellation of most vacation plans. However, the reopening of the economy has spurred strong demand for travel—and both Wyndham, and Travel + Leisure should benefit from that surge. We see each as a buy.

WYNDHAM HOTELS & RESORTS, $66.17, is suitable for your new buying. The company (New York symbol WH; TSINetwork Rating: Extra Risk) (www.wyndhamhotels.com; Shares outstanding: 85.9 million; Market cap: $5.6 billion; Dividend yield: 2.1%) is the world’s largest hotel franchiser, with 845,000 rooms spread across 9,100 hotels in 95 countries....

2 min read

Pat McKeough

Growth Stocks

This stock faces big challenges

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:

E AUTOMOTIVE INC., $3.32, (Toronto symbol EINC; TSINetwork Rating: Extra Risk) (www.e.inc; Shares outstanding: 48.1 million; Market cap: $158.3 million; No dividends paid) operates EBlock, a digital auction platform that aims to let car and truck dealerships and wholesalers expedite the buying and selling of inventory both online and at its physical auction locations.

In the three months ended March 31, 2023, E Automotive’s revenue increased by 23.9%, to $30.8 million from $24.8 million a year earlier....

1 min read

Pat McKeough

Growth Stocks

Broadridge gains from key market trends

Broadridge has a winning business model in expanding markets. We believe that will lead to strong growth in future years. The stock is a Power Buy.

BROADRIDGE FINANCIAL SOLUTIONS, $152.74, is a buy. The company (New York symbol BR; TSINetwork Rating: Average) (www.broadridge.com; Shares outstanding: 118.0 million; Market cap: $18.0 billion; Dividend yield: 1.9%) 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

Big drug trial for Lilly

ELI LILLY & CO., $437.47, is a #1 Power Buy for 2023. The company (New York symbol LLY; TSINetwork Rating: Above Average) (www.lilly.com; Shares outstanding: 949.3 million; Market cap: $414.5 billion; Dividend yield: 1.3%) rose to new all-time highs recently after its experimental Alzheimer’s drug, donanemab, slowed cognitive decline by 35% in a closely watched late-stage trial.

The results raise hopes for an effective treatment for the brain-wasting disease.

Based on the new data, Lilly plans to apply this quarter to the U.S....

1 min read

Pat McKeough

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Chuck Chakrapani, PhD
Investors Association of Canada
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Subscriber since 1996. Inner Circle Member Since 2006
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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.