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

Dividend hike a sign of confidence

RESTAURANT BRANDS INTERNATIONAL INC. $86 is a buy for aggressive investors. The company (Toronto symbol QSR, Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 450.9 million; Market cap: $38.8 billion; Price-to-sales ratio: 4.5; Dividend yield: 3.5%; TSINetwork Rating: Average; www.rbi.com) operates 30,722 fast-food outlets in over 100 countries: 19,789 Burger King, 5,600 Tim Hortons (coffee and donuts), 4,091 Popeyes Louisiana Kitchen (fried chicken) and 1,242 Firehouse Subs.

Overall sales in the quarter ended December 31, 2022, rose 9.2%, to $1.69 billion from $1.57 billion a year earlier (all amounts except share price and market cap in U.S....

1 min read

Pat McKeough

Growth Stocks

CAE remains your better choice

The easing of COVID-19 travel restrictions continues to benefit these two aerospace stocks. However, CAE’s exposure to both military and healthcare customers makes it a better pick than business jet maker Bombardier.

CAE INC. $31 is a buy. The company (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 317.9 million; Market cap: $9.9 billion; Price-to-sales ratio: 2.5; Dividend suspended in March 2020; TSINetwork Rating: Average; www.cae.com) is a leading maker of flight simulators for commercial and military aircraft....

2 min read

Pat McKeough

Growth Stocks

Lower costs will help Saputo adapt

Dairy producer Saputo unveiled an ambitious new strategy in 2021 that will cut its operating costs. It also continues to benefit as restaurants re-open on the lifting of COVID-19 lockdowns. However, the company remains vulnerable to increasingly popular alternative dairy products such as plant-based milks.

SAPUTO INC....

1 min read

Pat McKeough

Growth Stocks

Purchase should spur more growth

TELUS INTERNATIONAL (CDA) INC. $30 is a buy for aggressive investors. The company (Toronto symbol TIXT; Aggressive Growth Portfolio; Manufacturing sector; Shares outstanding: 266.6 million; Market cap: $8.0 billion; Price-to-sales ratio: 2.4; No dividend paid; TSINetwork Rating: Average; www.telusinternational.com) operates call centres on behalf of over 650 corporate clients in 30 countries....

1 min read

Pat McKeough

Growth Stocks

Two blue-chip stocks: one a buy, one a hold

Loblaw and Great-West are leading competitors in their respective markets; look for that to cut your ongoing risk. Still, for now, we see Great-West as a hold, while Loblaw remains a buy.

LOBLAW COMPANIES, $117.23, is a buy. The retailer (Toronto symbol L; Shares o/s: 322.7 million; Market cap: $37.6 billion; TSINetwork Rating: Above Average; Divd....

2 min read

Pat McKeough

Growth Stocks

Use these updates to enhance your returns

GANNETT CO. INC. $2.58 remains a hold. The company (New York symbol GCI; Conservative-Growth Portfolio, Consumer sector: Shares outstanding: 146.1 million; Market cap: $376.9 million; Price-to-sales ratio: 0.1; Dividend suspended in 2020; TSINetwork Rating: Speculative; www.gannett.com) merged with GateHouse Media, and its parent company New Media Investment Group Inc....

2 min read

Pat McKeough

Growth Stocks

Record backlog cuts your risk

MOTOROLA SOLUTIONS INC. $264 is a buy. The company (New York symbol MSI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 166.9 million; Market cap: $44.1 billion; Price-to-sales ratio: 5.0; Dividend yield: 1.3%; TSINetwork Rating: Average; www.motorolasolutions.com) makes communications equipment such as two-way radios for police and fire vehicles, as well as high-definition surveillance systems....

1 min read

Pat McKeough

Growth Stocks

Lower costs cut IFF’s risk

INTERNATIONAL FLAVORS & FRAGRANCES INC. $95 is still a buy. The company (New York symbol IFF; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 255.0 million; Market cap: $24.2 billion; Price-to-sales ratio: 2.0; Dividend yield: 3.4%; TSINetwork Rating: Above Average; www.iff.com) makes compounds that improve the taste of food and the smell of consumer products....

1 min read

Pat McKeough

Growth Stocks

These picks prosper from key trends

The pandemic presented both of these firms with unique challenges. However, each remained profitable and is well positioned to keep prospering as the economy rebounds. Trends now underway—as well as their strong position in key markets—will power their gains. Both are buys.

STERIS PLC, $198.13, is a buy. The firm (New York symbol STE; TSINetwork Rating: Extra Risk) (www.steris.com; Shares outstanding: 99.8 million; Market cap: $19.8 billion; Dividend yield: 0.9%) sells sterilization equipment, surgical tables, and other products and services used in hospitals and laboratories.

Steris operates in four segments: Healthcare (62% of revenues), Applied Sterilization Technologies (19%), Life Sciences (12%), and Dental (7%)....

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:

CORTEVA INC., $62.11, is a Power buy. The company (www.corteva.com; New York symbol CTVA; TSINetwork Rating: Extra Risk) (Shares o/s: 713.4 million; Market cap: $44.2 billion; Dividend yield: 1.0%) reports that China recently approved imports of eight genetically modified (GM) food crops....

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.