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

Adobe expands in collaboration software

This leading software firm benefited from the significant number of people working from home during the pandemic. Going forward, we expect the remote-work trend to continue and to spur rising demand for Adobe’s digital conferencing software and other apps.

Meanwhile, there are other factors pushing Adobe upward, including the company’s strong position in key markets and its high R&D spending....

2 min read

Pat McKeough

Growth Stocks

Key buy for ATD

ALIMENTATION COUCHE-TARD, $66.62, is a buy. This retailer (Toronto symbol ATD; TSINetwork Rating: Average) (couchetard.com; Shares o/s: 1.1 billion; Market cap: $67.9 billion; Dividend yield: 0.8%) has now agreed to acquire retail assets in Europe from French energy giant TotalEnergies SE for 3.1 billion euros ($4.5 million Cdn.).

Under the proposed deal, Couche-Tard will take over TotalEnergies’ retail networks in Germany and the Netherlands, comprising more than 1,500 service stations....

1 min read

Pat McKeough

Growth Stocks

Updating your Aggressive stocks: FirstService, Nutrien &, Toromont Industries

FIRSTSERVICE CORP. $190 (www.firstservice.com) is a buy. The company provides property management services to businesses and individuals. FirstService tends to fuel its growth with acquisitions....

1 min read

Pat McKeough

Growth Stocks

CGI keeps winning new contracts

CGI INC. $133 is your #1 Aggressive Buy for 2023. The company (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 245.1 million; Market cap: $32.6 billion; Price-to-sales ratio: 2.4; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) is Canada’s largest provider of computer-outsourcing services....

1 min read

Pat McKeough

Growth Stocks

New plan lifts ShawCor’s stock

SHAWCOR LTD. $12 is a buy, but only for highly aggressive investors. The company (Toronto symbol SCL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 70.5 million; Market cap: $846.0 million; Price-to-sales ratio: 0.7; Dividend suspended in March 2020; TSINetwork Rating: Average; www.shawcor.com) is conducting a strategic review of its businesses that serve the oil and gas industry—Pipeline Performance Group, Shaw Pipeline Services, and Oilfield Asset Management....

1 min read

Pat McKeough

Growth Stocks

Thomson returns cash to investors

THOMSON REUTERS CORP. $175 is a buy. The company (Toronto symbol TRI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 479.4 million; Market cap: $83.9 billion; Price-to-sales ratio: 9.6; Dividend yield: 1.5%; TSINetwork Rating: Above Average; www.thomsonreuters.com) sells specialized information (mainly through electronic channels) to professionals in the legal, and tax and accounting fields....

1 min read

Pat McKeough

Growth Stocks

Loblaw exits pot sales

LOBLAW COMPANIES, $125.91, is a buy. The retailer (Toronto symbol L; Shares o/s: 322.4 million; Market cap: $40.6 billion; TSINetwork Rating: Above Average; Divd. yield: 1.3%; www.loblaw.ca), purchased the Shoppers Drug Mart chain in March 2014 for $12.3 billion in cash and shares....

1 min read

Pat McKeough

Growth Stocks

Updating your Conservative stocks: Sherwin-Williams, Canon & Mondelez International

SHERWIN-WILLIAMS CO. $215 (www.sherwin-williams.com) remains a hold. The company is a leading maker of paints and varnishes. Due to rising interest rates, which will slow sales of existing homes, and rising labour costs, the company expects its earnings will decline from $8.73 a share in 2022 to between $7.95 and $8.65 a share in 2023....

1 min read

Pat McKeough

Growth Stocks

New products will fuel post-Covid growth

Becton Dickinson’s shares are down 6% in the past year, mainly due to falling demand for its COVID-19 testing kits as the pandemic eases. However, the company continues to launch new products, which should fuel its growth for many years to come.

BECTON DICKINSON & CO....

2 min read

Pat McKeough

Growth Stocks

New plant costs slow earnings

TEXAS INSTRUMENTS INC. $181 is a buy. The company (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 906.2 million; Market cap: $164.0 billion; Price-to-sales ratio: 8.3; Dividend yield: 2.7%; TSINetwork Rating: Average; www.ti.com) makes analog chips, which convert inputs like touch and sound into electronic signals that computers can understand.

In the fourth quarter of 2022, revenue fell 3.4%, to $4.67 billion from $4.83 billion a year earlier....

1 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.