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

Goodyear’s R&D will spur growth

GOODYEAR TIRE & RUBBER, $11.82, is a buy. The manufacturer (Nasdaq symbol GT; TSINetwork Rating: Extra Risk) (Shares o/s: 282.9 million; Market cap: $3.3 billion; No divds.) continues to invest in research and development to stay at the forefront of new tire innovations.

For instance, at the recent Consumer Electronics Show (CES) in as Las Vegas, Goodyear unveiled a new “demonstration tire” comprised of 90% sustainable material content such as soybean oil and rice husk waste....

1 min read

Pat McKeough

Growth Stocks

They are cheap considering their prospects

Both Electronic Arts and Warner Music soared during the pandemic but have now given up some of those gains. We still like their competitive prospects in their niche markets, and each stock is especially attractive for new buying right now.

ELECTRONIC ARTS, $113.34, is a buy. The company (Nasdaq symbol EA; TSINetwork Rating: Extra Risk) (www.ea.com; Shares o/s: 276.0 million; Market cap: $31.3 billion; Yield: 0.7%) is a developer of videogames for play on consoles, PCs, and mobile devices....

2 min read

Pat McKeough

Growth Stocks

Look beyond acquisitional growth

You should remain wary of stocks that attract broker/media praise for their high-profile products or services and their business models. Here’s an example of a stock to avoid:

DENTALCORP HOLDINGS LTD., $9.75, (Toronto symbol DNTL; TSINetwork Rating: Extra Risk) (dentalcorp.ca; Shares o/s: 176.4 million; Market cap: $1.7 billion; No dividends paid) is Canada’s largest dental practice network....

1 min read

Pat McKeough

Growth Stocks

Gen Digital is cutting cost to lower risk

GEN DIGITAL INC., $21.53, is a buy. The company (Nasdaq symbol GEN; TSINetwork Rating: Extra Risk) (gendigital.com; Shares o/s: 661.0 million; Market cap: $14.2 billion; Divd....

1 min read

Pat McKeough

Growth Stocks

Savvy buys bolster this Power pick’s growth

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

Car washes offer Couche-Tarde a cross-selling boost

Alimentation Couche-Tard has moved to add more car washes to its portfolio as a way of boosting new and existing revenue. Car washes not only add standalone value, but also let the company cross-sell the services of its convenience stores and gas-stations.

ALIMENTATION COUCHE-TARD, $64.37, is a #1 Power Buy for your 2023 investing. The company (Toronto symbol ATD; TSINetwork Rating: Average) (couchetard.com; Shares o/s: 1.0 billion; Market cap: $64.4 billion; Dividend yield: 0.9%) recently added to its chain of car washes with the acquisition of True Blue Car Wash LLC, which has 65 locations in high-traffic areas of Arizona, Illinois, Indiana and Texas....

1 min read

Pat McKeough

Growth Stocks

Here’s a tech to buy

PAGERDUTY INC., $31.60, is a buy. The company (New York symbol PD; TSINetwork Rating: Extra Risk) (www.pagerduty.com; Shares o/s: 90.0 million; Market cap: $2.8 billion; No dividends paid) will lay off 7% of its 950-member workforce as part of an effort to boost profitability.

Notably, many tech firms, including Microsoft and Amazon.com, have recently cut workers....

1 min read

Pat McKeough

Growth Stocks

Last year’s 35% gain is just a start

Fair Isaac stock has risen 35% for our subscribers over the last year—and a whopping 20,396.8% since we first recommended it in our February 1999 issue at $3.41 a share (split adjusted)! That said, we think the shares have room to move much higher.

In the short term, it’s possible that demand for the company’s credit scoring solutions will weaken as rising interest rates slow home buying....

3 min read

Pat McKeough

Growth Stocks

Toromont aims to seize on a trend

TOROMONT INDUSTRIES LTD. $106 is a buy. The company (Toronto symbol TIH; Aggressive Growth Portfolio; Manufacturing sector; Shares o/s: 82.3 million; Market cap: $8.7 billion; Price-to-sales ratio: 2.2; Dividend yield: 1.5%; TSINetwork Rating: Extra Risk; www.toromont.com) distributes bulldozers, backhoe loaders and drills, including Caterpillar machinery, in eastern Canada and along the U.S....

1 min read

Pat McKeough

Growth Stocks

Stantec remains the better choice

These two engineering firms continue to win new public works contracts. However, we prefer Stantec for your new buying as SNC’s shares will likely stay in a narrow range while it winds down its less-profitable legacy projects.

STANTEC INC. $71 is a buy. The stock (Toronto symbol STN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 110.8 million; Market cap: $7.9 billion; Price-to-sales ratio: 1.5; Dividend yield: 1.0%; TSINetwork Rating: Extra Risk; www.stantec.com) offers you exposure to this leading seller of consulting, project-delivery, design and technology services....

2 min read

Pat McKeough

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Investors Association of Canada
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Subscriber since 1996. Inner Circle Member Since 2006
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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.