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

Get fintech exposure with much less risk

In our view, the recent bankruptcy of cryptocurrency exchange operator FTX Trading highlights the dangers of investing in potentially disruptive fintech (the combination of financial services and technology services). We prefer these three well-established fintechs, which have innovative products and a long history of rising revenue and earnings.

BROADRIDGE FINANCIAL SOLUTIONS INC....

5 min read

Pat McKeough

Growth Stocks

Microsoft adds AI expertise

MICROSOFT CORP. $241 is a buy for aggressive investors. The software giant (Nasdaq symbol MSFT; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 7.5 billion; Market cap: $1.8 trillion; Price-to-sales ratio: 8.9; Dividend yield: 1.1%; TSINetwork Rating: Above Average; www.microsoft.com) has increased its investment in OpenAI....

1 min read

Pat McKeough

Growth Stocks

ResMed makes a savvy buy

RESMED INC., $225.97, is a buy. The company (New York symbol RMD; TSINetwork Rating: Average) (www.resmed.com; Shares outstanding: 146.5 million; Market cap: $33.1 billion; Dividend yield: 0.7%) makes medical devices used to treat patients with sleep apnea as well as chronic obstructive pulmonary disease and other respiratory conditions.

With each machine ResMed sells, it acquires a long-term replacement-parts customer....

1 min read

Pat McKeough

Growth Stocks

Your niche financials have gains ahead

ACI Worldwide and Broadridge both have winning business models in expanding markets. We believe that will lead to strong growth in future years. Both are buys.

ACI WORLDWIDE, $26.38, is a buy. The firm (Nasdaq symbol ACIW; TSINetwork Rating: Extra Risk) (Shares o/s: 114.0 million; Market cap: $3.0 billion; No divds.) is a leading software provider for processing transactions by credit cards, debit cards, ATMs, point-of-sale terminals and interbank systems....

2 min read

Pat McKeough

Growth Stocks

Merck’s strong R&D and cash holding are big pluses

Merck spends a very high 25% of its sales on research. That goes into developing new drugs but also into finding more profitable uses for its current drugs. A big cash holding of $11.2 billion also gives Merck lots of financial strength—and room for dividend hikes. It’s a Power Buy.

MERCK & CO....

1 min read

Pat McKeough

Growth Stocks

These insider sales are not a red flag

THE TJX COMPANIES, $79.81, (New York symbol TJX; TSINetwork Rating: Above Average) (tjx.com; Shares o/s: 1.2 billion; Market cap: $94.2 billion; Yield: 1.5%), reports that some TJX executives and board members have sold large amounts of shares: for example, executive chair Carol Meyrowitz sold 16,223 shares for a total of $1.3 million....

1 min read

Pat McKeough

Growth Stocks

Power your returns with these two leaders

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’s a stock you should avoid

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:

MEDICAL FACILITIES CORP., $8.22, (Toronto symbol TOY; TSINetwork Rating: Extra Risk) (Shares o/s: 26.2 million; Market cap: $218.2 million; Dividend yield: 3.9%) holds majority interest in four specialty surgical hospitals in South Dakota, Oklahoma and Arkansas....

1 min read

Pat McKeough

Growth Stocks

Activist targets Disney

WALT DISNEY CO., $99.04, is a buy. The company (New York symbol DIS; TSINetwork Rating: Above Average) (www.disney.com; Shares o/s: 1.8 billion; Market cap: $182.2 billion; No dividend) faces a new challenge....

1 min read

Pat McKeough

Growth Stocks

Updating your Aggressive stocks: FirstService, Colliers & Leon’s Furniture

FIRSTSERVICE CORP. $183 (www.firstservice.com) is a buy. The company provides property management services to businesses and individuals. Those services include collecting monthly condominium maintenance fees, preparing financial statements, and providing on-site security and property cleaning/maintenance....

1 min read

Pat McKeough

Testimonials

The cornerstones of Pat’s strategy–value, diversification and timelines–make his newsletter, The Successful Investor, highly profitable while minimizing risk. His advice is no-nonsense, down-to-earth and based on solid research. You’ll know what to invest in and what to avoid.

Chuck Chakrapani, PhD
Investors Association of Canada
The older I get the better dividends look. For retirees and would-be retirees who want to sleep at night, I can’t think of a better source of information on reliable growing dividend income than Pat McKeough’s newsletter, Dividend Advisor.

Jonathan Chevreau
Financial Post Columnist
As a manager of more than $500 million in mutual funds, I have access to the best brokerage research available in this country. But I still take time to read Pat McKeough’s premium newsletters

John Sartz
I appreciate the 25 years of above market returns I received by following your advice. at least 95% of my investment decisions were based on TSI recommendations.

Chuck J.
Subscriber since 1996. Inner Circle Member Since 2006
The newsletters I receive in Inner Circle Pro are fantastic! I have been following Pat’s advice for years and everything he has said has been amazing. His commentaries are brilliant, insightful, educational, rational and balanced. My returns are almost double the TSE and I have referred many of my friends who have switched over to your services.

Walter H.
Inner Circle Pro subscriber

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.