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

Two blue-chip stocks: one a buy, one a hold

Loblaw and Great-West are leading competitors in their respective markets; look for that to cut your ongoing risk. Still, for now, we see Great-West as a hold, while Loblaw remains a buy.

LOBLAW COMPANIES, $117.23, is a buy. The retailer (Toronto symbol L; Shares o/s: 322.7 million; Market cap: $37.6 billion; TSINetwork Rating: Above Average; Divd....

2 min read

Pat McKeough

Growth Stocks

Use these updates to enhance your returns

GANNETT CO. INC. $2.58 remains a hold. The company (New York symbol GCI; Conservative-Growth Portfolio, Consumer sector: Shares outstanding: 146.1 million; Market cap: $376.9 million; Price-to-sales ratio: 0.1; Dividend suspended in 2020; TSINetwork Rating: Speculative; www.gannett.com) merged with GateHouse Media, and its parent company New Media Investment Group Inc....

2 min read

Pat McKeough

Growth Stocks

Record backlog cuts your risk

MOTOROLA SOLUTIONS INC. $264 is a buy. The company (New York symbol MSI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 166.9 million; Market cap: $44.1 billion; Price-to-sales ratio: 5.0; Dividend yield: 1.3%; 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

Lower costs cut IFF’s risk

INTERNATIONAL FLAVORS & FRAGRANCES INC. $95 is still a buy. The company (New York symbol IFF; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 255.0 million; Market cap: $24.2 billion; Price-to-sales ratio: 2.0; Dividend yield: 3.4%; 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

Growth Stocks

These picks prosper from key trends

The pandemic presented both of these firms with unique challenges. However, each remained profitable and is well positioned to keep prospering as the economy rebounds. Trends now underway—as well as their strong position in key markets—will power their gains. Both are buys.

STERIS PLC, $198.13, is a buy. The firm (New York symbol STE; TSINetwork Rating: Extra Risk) (www.steris.com; Shares outstanding: 99.8 million; Market cap: $19.8 billion; Dividend yield: 0.9%) sells sterilization equipment, surgical tables, and other products and services used in hospitals and laboratories.

Steris operates in four segments: Healthcare (62% of revenues), Applied Sterilization Technologies (19%), Life Sciences (12%), and Dental (7%)....

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:

CORTEVA INC., $62.11, is a Power buy. The company (www.corteva.com; New York symbol CTVA; TSINetwork Rating: Extra Risk) (Shares o/s: 713.4 million; Market cap: $44.2 billion; Dividend yield: 1.0%) reports that China recently approved imports of eight genetically modified (GM) food crops....

2 min read

Pat McKeough

Growth Stocks

Goodyear’s R&D will spur growth

GOODYEAR TIRE & RUBBER, $11.82, is a buy. The manufacturer (Nasdaq symbol GT; TSINetwork Rating: Extra Risk) (Shares o/s: 282.9 million; Market cap: $3.3 billion; No divds.) continues to invest in research and development to stay at the forefront of new tire innovations.

For instance, at the recent Consumer Electronics Show (CES) in as Las Vegas, Goodyear unveiled a new “demonstration tire” comprised of 90% sustainable material content such as soybean oil and rice husk waste....

1 min read

Pat McKeough

Growth Stocks

They are cheap considering their prospects

Both Electronic Arts and Warner Music soared during the pandemic but have now given up some of those gains. We still like their competitive prospects in their niche markets, and each stock is especially attractive for new buying right now.

ELECTRONIC ARTS, $113.34, is a buy. The company (Nasdaq symbol EA; TSINetwork Rating: Extra Risk) (www.ea.com; Shares o/s: 276.0 million; Market cap: $31.3 billion; Yield: 0.7%) is a developer of videogames for play on consoles, PCs, and mobile devices....

2 min read

Pat McKeough

Growth Stocks

Look beyond acquisitional growth

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:

DENTALCORP HOLDINGS LTD., $9.75, (Toronto symbol DNTL; TSINetwork Rating: Extra Risk) (dentalcorp.ca; Shares o/s: 176.4 million; Market cap: $1.7 billion; No dividends paid) is Canada’s largest dental practice network....

1 min read

Pat McKeough

Growth Stocks

Gen Digital is cutting cost to lower risk

GEN DIGITAL INC., $21.53, is a buy. The company (Nasdaq symbol GEN; TSINetwork Rating: Extra Risk) (gendigital.com; Shares o/s: 661.0 million; Market cap: $14.2 billion; Divd....

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.