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

Quaker rebounds with the economy

QUAKER CHEMICAL CORP. $198 is still a buy. The company (New York symbol KWR; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 18.0 million; Market cap: $3.6 billion; Price-to-sales ratio: 1.9; Dividend yield: 0.9%; TSINetwork Rating: Average; www.quakerhoughton.com) acquired rival specialty chemicals maker Houghton International in August 2019....

1 min read

Pat McKeough

Growth Stocks

Motorola posts a strong quarter

MOTOROLA SOLUTIONS INC. $284 is a buy. The company (New York symbol MSI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 166.9 million; Market cap: $47.4 billion; Price-to-sales ratio: 5.1; Dividend yield: 1.2%; 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

Baxter narrows its focus

BAXTER INTERNATIONAL INC. $42 is a buy. The company (New York symbol BAX; Conservative Growth Portfolio; Manufacturing sector; Shares outstanding: 505.9 million; Market cap: $21.2 billion; Price-to-sales ratio: 1.6; Dividend yield: 2.7%; TSINetwork Rating: Average; www.baxter.com) has agreed to sell its BioPharma division to private-equity firms Advent International and Warburg Pincus for $4.25 billion (or $3.4 billion after taxes)....

1 min read

Pat McKeough

Growth Stocks

GE’s spinoff plan still on track

GENERAL ELECTRIC CO. $101 remains a hold. The conglomerate (New York symbol GE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.1 billion; Market cap: $111.1 billion; Price-to-sales ratio: 1.4; Dividend yield: 0.3%; TSINetwork Rating: Average; www.ge.com) recently spun off its healthcare products business (X-ray equipment, MRI and ultrasound scanners) as GE HealthCare Technologies Inc (Nasdaq symbol GEHC)....

1 min read

Pat McKeough

Growth Stocks

iPhone users may delay upgrading

APPLE INC. $172 is still a hold. The company (Nasdaq symbol AAPL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 16.2 billion; Market cap: $2.8 trillion; Price-to-sales ratio: 7.0; Dividend yield: 0.6%; TSINetwork Rating: Average; www.apple.com) gets about half of its revenue from iPhone sales....

1 min read

Pat McKeough

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

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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.