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

Twilio adjusts to slower demand

TWILIO INC., $68.76, is a buy. The company (Nasdaq symbol TWLO; TSINetwork Rating: Extra Risk) (www.twilio.com; Shares outstanding: 173.3 million; Market cap: $13.0 billion; No dividends paid) now plans to lay off 11% of its workforce....

1 min read

Pat McKeough

Growth Stocks

Here’s a stock you should avoid

The plunge for many tech/platform stocks since the start of this year has hit both high-growth stocks with strong prospects as well as others with weaker outlooks that you should remain wary of despite broker/media praise for their business models. Here’s an example of a stock to stay away from:

WAG! GROUP CO., $3.33, (Nasdaq symbol PET; TSINetwork Rating: Speculative) (www.wag.co; Shares o/s: 37.9 million; Market cap: $126.3 million; No dividend) is the developer of a mobile-first technology platform that provides on-demand and scheduled pet-care services such as dog walking, training, pet sitting, etc....

1 min read

Pat McKeough

Growth Stocks

Disney responds to activist advice

WALT DISNEY CO., $98.99, is a buy. The company (New York symbol DIS; TSINetwork Rating: Above Average) (www.disney.com; Shares o/s: 1.8 billion; Market cap: $179.5 billion; No dividend) has now added Carolyn Everson, a veteran technology and media executive, most recently president of grocery delivery company Instacart, to its board of directors....

1 min read

Pat McKeough

Growth Stocks

PagerDuty has a winning business model

One Successful Investor way to cut IPO risk is to wait till a new issue has survived a market slump. 2019 IPO PagerDuty dropped to near $13 in March 2020 as COVID-19 took hold. But its business has continued to prosper by applying artificial intelligence (AI) to help customers shorten or avoid disruptions and to save money. We recommend this stock as a Power Buy.

PAGERDUTY INC., $22.47, is a buy. The company (New York symbol PD; TSINetwork Rating: Extra Risk) (www.pagerduty.com; Shares outstanding: 89.2 million; Market cap: $2.1 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.

PagerDuty’s platform sits on top of a company’s technology systems, taking in data....

2 min read

Pat McKeough

Growth Stocks

Eli Lilly gets an accelerated review from the FDA

Eli Lilly discovers, develops, manufactures, and markets human pharmaceutical products—and it now has an obesity drug with a bright future that’s being fast-tracked by the FDA.

ELI LILLY & CO., $329.29, is a buy. The company (New York symbol LLY; TSINetwork Rating: Above Average) (www.lilly.com; Shares o/s: 950.2 million; Market cap: $318.3 billion; Dividend yield: 1.2%) said that the U.S....

1 min read

Pat McKeough

Growth Stocks

Key move for Merck

MERCK & CO. INC., $93.26, is a #1 Power Buy for 2022. The drugmaker (New York symbol MRK; TSINetwork Rating: Above Average) (www.merck.com; Shares outstanding: 2.5 billion; Market cap: $239.7 billion; Dividend yield: 3.0%) has now exercised an option to jointly develop and potentially sell an mRNA-based cancer vaccine along with Moderna (symbol MRNA on Nasdaq).

The vaccine, mRNA-4157, is being tested in conjunction with Merck’s blockbuster cancer immunotherapy Keytruda, in a mid-stage trial for patients with high-risk melanoma....

1 min read

Pat McKeough

Growth Stocks

AbbVie diversifies for future growth

We continue to see attractive investment opportunities for our subscribers in top drug stocks—and that includes AbbVie Inc. At the same time, over the years, we’ve found that spinoffs are about as close as you can get to a sure thing in investing. It’s one key reason why we think AbbVie—itself a spinoff—has further gains ahead for investors. We recommend this stock as a Power Buy.

ABBVIE INC., $143.13, is a buy. The company (New York symbol ABBV; TSINetwork Rating: Above Average) (www.abbvie.com; Shares outstanding: 1.8 billion; Market cap: $255.7 billion; Dividend yield: 3.9%) was formed on January 3, 2013, when Abbott Laboratories (symbol ABT on New York) split into two publicly traded companies.

Since its spinoff from Abbott Laboratories, AbbVie has depended heavily on its Humira drug to drive both its sales and earnings....

3 min read

Pat McKeough

Growth Stocks

This is a good way to gain from re-opening

Shares of commercial real estate specialist Colliers fell to $49 in March 2020 due to the onset of COVID-19. Now that the pandemic is easing, the stock has more than doubled. We feel Colliers can move even higher on rising demand for its services as offices re-open, or are converted to other uses such as residential units.

COLLIERS INTERNATIONAL GROUP INC....

2 min read

Pat McKeough

Growth Stocks

Use our updates to enhance your portfolio

RIOCAN REAL ESTATE INVESTMENT TRUST $18 is a buy. The REIT (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 309.1 million; Market cap: $5.6 billion; Price-to-sales ratio: 4.7; Distribution yield: 5.7%; TSINetwork Rating: Average; www.riocan.com) owns all or part of 202 shopping centres and other properties, including 12 currently under development....

2 min read

Pat McKeough

Growth Stocks

New markets will spur its pandemic recovery

More regions are now re-opening their economies as the COVID-19 pandemic eases. That’s good news for fast-food operator Restaurant Brands, which aims to spur its long-term growth by expanding its overseas operations, which currently supply just 10% of its revenue.
RESTAURANT BRANDS INTERNATIONAL INC....

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.