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.

Read More Close

Growth Stocks Library Archives

Growth Stocks

Three ways to balance your Finance holdings

We continue to recommend investors diversify their Finance sector holdings with non-bank stocks. Here are three stocks that dominate their niche markets yet have little exposure to the current turmoil in the U.S. banking system. However, only aggressive investors should consider adding them to their portfolios.

BROADRIDGE FINANCIAL SOLUTIONS INC....

5 min read

Pat McKeough

Growth Stocks

Microsoft gets an AI boost

MICROSOFT CORP. $295 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: $2.2 trillion; Price-to-sales ratio: 9.9; Dividend yield: 0.9%; TSINetwork Rating: Above Average; www.microsoft.com) continues to benefit from strong demand for its Azure cloud computing platform....

1 min read

Pat McKeough

Growth Stocks

Two buys for post-pandemic growth

Both Yum Brands and its spinoff Yum China rebounded strongly as COVID-19 lockdowns ended and restaurants fully reopened. In fact, both stocks are now trading close to their all-time highs.

Part of that gain is due to their shift to an “asset-light” business model....

4 min read

Pat McKeough

Growth Stocks

Government backing cuts investor risk

Both Calian and WELL Health offer investors a major plus. Specifically, the two get most of their revenue from governments. For Calian, revenue generated from federal departments and agencies currently represents about 50% of the total. Meanwhile, WELL profits from Canada’s government-backed, recession-resilient health-care sector.

CALIAN GROUP, $63.39, is a buy. The stock (Toronto symbol CGY; TSINetwork Rating: Extra Risk) (calian.com; Shares outstanding: 11.7 million; Market cap: $736.7 million; Dividend yield: 1.8%) lets investors tap the Ottawa-based company’s four main operating segments:

Advanced Technologies offers products and engineering services for the space, communications, nuclear, agriculture, defence and government sectors....

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:

THE TJX COMPANIES, $78.01, (New York symbol TJX; TSINetwork Rating: Above Average) (tjx.com; Shares o/s: 1.2 billion; Market cap: $89.6 billion; Yield: 1.7%),is a leading off-price retailer of clothing, accessories and home fashions....

2 min read

Pat McKeough

Growth Stocks

Restaurant Brands expands in China

RESTAURANT BRANDS INTERNATIONAL, $68.39, is a buy. The company (New York symbol QSR; TSI Rating: Average) (www.rbi.com; Shares o/s: 478.0 million; Market cap: $21.2 billion; Yield: 3.2%) reports that TH International Limited (“Tims China”) will now become the exclusive operator and developer of the Popeyes brand in mainland China....

1 min read

Pat McKeough

Growth Stocks

Adobe expands in collaboration software

This leading software firm benefited from the significant number of people working from home during the pandemic. Going forward, we expect the remote-work trend to continue and to spur rising demand for Adobe’s digital conferencing software and other apps.

Meanwhile, there are other factors pushing Adobe upward, including the company’s strong position in key markets and its high R&D spending....

2 min read

Pat McKeough

Growth Stocks

Key buy for ATD

ALIMENTATION COUCHE-TARD, $66.62, is a buy. This retailer (Toronto symbol ATD; TSINetwork Rating: Average) (couchetard.com; Shares o/s: 1.1 billion; Market cap: $67.9 billion; Dividend yield: 0.8%) has now agreed to acquire retail assets in Europe from French energy giant TotalEnergies SE for 3.1 billion euros ($4.5 million Cdn.).

Under the proposed deal, Couche-Tard will take over TotalEnergies’ retail networks in Germany and the Netherlands, comprising more than 1,500 service stations....

1 min read

Pat McKeough

Growth Stocks

Updating your Aggressive stocks: FirstService, Nutrien &, Toromont Industries

FIRSTSERVICE CORP. $190 (www.firstservice.com) is a buy. The company provides property management services to businesses and individuals. FirstService tends to fuel its growth with acquisitions....

1 min read

Pat McKeough

Growth Stocks

CGI keeps winning new contracts

CGI INC. $133 is your #1 Aggressive Buy for 2023. The company (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 245.1 million; Market cap: $32.6 billion; Price-to-sales ratio: 2.4; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) is Canada’s largest provider of computer-outsourcing services....

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.