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

Corteva expands into natural crop protection

Corteva’s outlook remains positive, along with its industry fundamentals. Those bright prospects are supported by rising long-term demand for agricultural products. In addition, farmers will continue to seek improved crop quality and higher yields, which ought to increase demand for Corteva’s seed and crop protection markets. It’s a Power Buy.

CORTEVA INC., $61.70, is a buy. The company (www.corteva.com; New York symbol CTVA; TSINetwork Rating: Extra Risk) (Shares o/s: 714.5 million; Market cap: $44.8 billion; Dividend yield: 1.0%) has now agreed to buy biologicals firm Stoller Group for $1.2 billion to accelerate its expansion into the growing market for nature-based crop protection products.

Stoller is a privately held, Houston-based company with operations and sales in more than 60 countries and $400 million in annual revenue....

1 min read

Pat McKeough

Growth Stocks

Two tech leaders ready to rebound: PagerDuty Inc. and Twilio Inc.

PagerDuty and Twilio were well positioned to gain during the pandemic—but since mid-2021 have dropped along with most other tech/platform stocks. Still, we think both have room to rebound as their services continue to experience strong—and growing —demand. Both are buys.

PAGERDUTY INC., $26.07, is a buy. The company (New York symbol PD; TSINetwork Rating: Extra Risk) (www.pagerduty.com; Shares outstanding: 90.0 million; Market cap: $2.3 billion; No dividends paid) operates a platform that collects real-time data from software systems and devices and then notifies its IT customers of any incident that could harm their operations.

For the three months ended October 31, 2022, revenue rose 31.3%, to $94.2 million from $71.8 million a year earlier....

2 min read

Pat McKeough

Growth Stocks

Toromont gains as economy re-opens

TOROMONT INDUSTRIES LTD. $102 is a buy. The company (Toronto symbol TIH; Aggressive Growth Portfolio; Manufacturing sector; Shares outstanding: 82.3 million; Market cap: $8.4 billion; Price-to-sales ratio: 2.1; 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

Use our updates to enhance your portfolio

TORONTO-DOMINION BANK $89 is a buy. The lender (Toronto symbol TD; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.8 billion; Market cap: $160.2 billion; Price-to-sales ratio: 3.6; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.td.com) recently formed a new alliance with Canada Post....

2 min read

Pat McKeough

Growth Stocks

Lower costs put them on a better path

The long-term outlook for these two leading food makers remains solid. Their strong brands are also making it easier for them to raise selling prices to cover rising costs. However, the shares of both companies will likely remain in a narrow range while they restructure their operations.

MAPLE LEAF FOODS INC....

2 min read

Pat McKeough

Growth Stocks

RBI expands in Eastern Europe

RESTAURANT BRANDS INTERNATIONAL INC. $90 is a buy for aggressive investors. The company (Toronto symbol QSR, Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 449.1 million; Market cap: $40.4 billion; Price-to-sales ratio: 4.8; Dividend yield: 3.3%; TSINetwork Rating: Average; www.rbi.com) is the world’s third-largest fast-food operator after McDonald’s (No....

1 min read

Pat McKeough

Growth Stocks

Look for Nutrien to fill the gap

NUTRIEN LTD. $106 is a buy. The company (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 520.2 million; Market cap: $55.1 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.5%; TSINetwork Rating: Average; www.nutrien.com) is the world’s largest producer of agricultural fertilizers: it ships about 27 million tonnes annually.

Due to economic sanctions, Nutrien expects that Russia’s potash exports declined 25% in 2022....

1 min read

Pat McKeough

Growth Stocks

Both are thriving in post-pandemic markets

Loblaw is ready to thrive in a post-COVID-19 environment. Many of its customers who opted for home delivery (or in-store pickup) during pandemic lockdowns are sticking with that value-added service. The company’s improvements to its loyalty programs should also drive additional spending per visit, both in its stores and on its websites.

The stock lets you tap this growth and the company’s other successful retailing strategies....

2 min read

Pat McKeough

Growth Stocks

Look past Cintas’s high multiple

Cintas’s shares have gained 15% since the start of 2022 as the re-opening of the economy continues to spur demand for its uniform rentals and other business services. While the stock looks expensive in relation to its earnings, its high market share and cost controls justify that multiple.

CINTAS CORP....

2 min read

Pat McKeough

Growth Stocks

Investors will benefit from breakup

NCR CORP. $23 is still a buy for aggressive investors. The company (New York symbol NCR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 137.4 million; Market cap: $3.2 billion; Price-to-sales ratio: 0.4; No dividend paid; TSINetwork Rating: Average; www.ncr.com) plans to separate into two publicly traded firms.

The automated teller machines (ATM) operations will have annual revenue of $3.8 billion and gross earnings of $700 million....

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.