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

CAE wins new Mideast contract

CAE INC. $28 remains a buy for long-term gains. The company (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 317.8 million; Market cap: $8.9 billion; Price-to-sales ratio: 2.3; Dividend suspended in March 2020; TSINetwork Rating: Average; www.cae.com) is a leading maker of flight simulators for commercial and military aircraft....

1 min read

Pat McKeough

Growth Stocks

Use our updates to enhance your portfolio

BOMBARDIER INC. remains a hold. The company (Toronto symbols BBD.A $56 and BBD.B $56; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 93.9 million; Market cap: $5.3 billion; Price-to-sales ratio: 0.7; Dividend suspended in February 2015; TSINetwork Rating: Speculative; www.bombardier.com) recently unveiled its Global 8000 business jet, which is faster and has greater range than the earlier 7500 model.

NetJets Inc., which leases aircraft to corporate clients, has agreed to become the fleet launch customer for the Global 8000....

2 min read

Pat McKeough

Growth Stocks

Look for Canada’s food sellers to move up

Thanks to rising food prices, the shares of these two leading supermarket chains are hitting new all-time highs. Even so, they continue to trade at reasonable multiples in relation to their respective earnings.

LOBLAW COMPANIES LTD. $118 is a buy. The company (Toronto symbol L; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 324.0 million; Market cap: $38.2 billion; Price-to-sales ratio: 0.7; Dividend yield: 1.4%; TSINetwork Rating: Above Average; www.loblaw.ca) operates 1,092 supermarkets under several banners, including Loblaws, Zehrs, Provigo, Real Canadian Superstore and No Frills....

2 min read

Pat McKeough

Growth Stocks

Here are three key updates on your portfolio

PHILIPS ELECTRONICS N.V. ADRs $14 is now a hold. Shares in the medical device maker (New York symbol PHG; Conservative Growth Portfolio, Manufacturing sector; ADRs outstanding: 870.2 million; Market cap: $12.2 billion; Price-to-sales ratio: 0.6; Dividend yield: 6.5%; TSINetwork Rating: Average; www.philips.com) have dropped 65% since the start of 2022, mainly due to the recall of 5.5 million sleep apnea and ventilator machines on concerns a foam used in the devices could degrade and release harmful particles.

So far, the company has distributed 4 million replacement devices and repair kits....

2 min read

Pat McKeough

Growth Stocks

These two still have long-term appeal

Becton has held up well despite the current market downturn—it’s up 3% in the past year compared to the 16% drop for the S&P 500 Index. However, Baxter is down 40% as its latest acquisition has failed to live up to market expectations. Even so, easing of the COVID-19 pandemic should spur demand for their products as hospitals resume regular medical procedures....

2 min read

Pat McKeough

Growth Stocks

Diageo enters new premium market

DIAGEO PLC ADR $181 is a hold. The company (New York symbol DEO; Conservative Growth Portfolio, Consumer sector; ADRs o/s: 577.6 million; Market cap: $104.5 billion; Price-to-sales ratio: 5.5; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.diageo.com) is a leading maker of premium alcoholic beverages....

1 min read

Pat McKeough

Growth Stocks

NortonLifeLock has a new name

GEN DIGITAL INC. $22 is a buy. The company (Nasdaq symbol GEN; Aggressive Growth Portfolio; Consumer sector; Shares outstanding: 581.3 million; Market cap: $12.8 billion; Price-to-sales ratio: 4.5; Dividend yield: 2.3%; TSINetwork Rating: Average Average; www.gendigital.com) changed its name from NortonLifeLock (old symbol NLOK) following its September 2022 acquisition of European cybersecurity firm Avast plc for $8.1 billion....

1 min read

Pat McKeough

Growth Stocks

Lamb Weston boosts your income

LAMB WESTON HOLDINGS INC. $89 is a buy. The company (New York symbol LW, Income Portfolio, Consumer sector; Shares outstanding: 143.8 million; Market cap: $12.8 billion; Price-to-sales ratio: 3.0; Dividend yield: 1.3%; TSINetwork Rating: Average; www.lambweston.com) is a leading producer of frozen french fries, potatoes and other packaged vegetables.

Thanks to the re-opening of restaurants, the stock has jumped 47% in the past year....

1 min read

Pat McKeough

Growth Stocks

These foodmakers can handle rising costs

Rising prices for corn, wheat and other crops are adding to the costs of these food and ingredient producers. However, the strong position of their leading brands let them pass along these extra costs to their customers. Even so, we feel Archer Daniels and Mondelez are currently in a better position than PepsiCo to withstand a slowdown in consumer spending.

ARCHER DANIELS MIDLAND CO....

5 min read

Pat McKeough

Growth Stocks

Sale helps IFF trim debt

INTERNATIONAL FLAVORS & FRAGRANCES INC. $104 is a buy. The company (New York symbol IFF; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 255.0 million; Market cap: $26.5 billion; Price-to-sales ratio: 2.1; Dividend yield: 3.1%; 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

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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.