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

Three more updates to protect your gains

DUN & BRADSTREET HOLDINGS INC. $14 remains a buy. The company (New York symbol DNB; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 433.8 million; Market cap: $6.1 billion; Price-to-sales ratio: 2.7; Dividend yield: 1.4%; TSINetwork Rating: Extra Risk; www.dnb.com) continues to benefit from its January 2021 acquisition of Bisnode Business Information Group AB for $805.8 million in cash and shares....

2 min read

Pat McKeough

Growth Stocks

High p/e reflects added risk

MCCORMICK & CO. INC. $78 remains a hold. The maker of spices and seasonings (New York symbol MKC; Income Portfolio, Consumer sector; Shares outstanding: 268.2 million; Market cap: $20.9 billion; Price-to-sales ratio: 3.93 Dividend yield: 2.0%; TSINetwork Rating: Average; www.mccormick.com) probably saw its earnings fall 12% to $2.67 a share for fiscal 2022, ended November 30, 2022....

1 min read

Pat McKeough

Growth Stocks

These spinoffs continue to impress us

Both these firms continue to thrive since former parent company Raytheon Technologies (see page 18) spun them off as independent firms. Recent acquisitions also position them for more gains as the global economy rebounds from the COVID-19 pandemic and any coming recession.

CARRIER GLOBAL CORP....

2 min read

Pat McKeough

Growth Stocks

Two ways to profit from China’s re-opening

China is now re-opening its economy at the end of its stringent zero-COVID-19 lockdowns. That’s good news for these two fast-food operators, as China has been targeted as a major source of future growth.

STARBUCKS CORP. $107 is a buy for aggressive investors. The company (Nasdaq symbol SBUX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 1.15 billion; Market cap: $123.1 billion; Price-to-sales ratio: 3.8; Dividend yield: 2.0%; TSINetwork Rating: Above Average; www.starbucks.com) is a leading seller and roaster of specialty coffee....

2 min read

Pat McKeough

Growth Stocks

Nordstrom reports poor holiday sales

NORDSTROM INC. $18 remains a hold. The company (New York symbol JWN; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 160.1 million; Market cap: $2.9 billion; Price-to-sales ratio: 0.2; Dividend yield: 4.2%; TSINetwork Rating: Extra Risk; www.nordstrom.com) owns and operates over 350 stores in the U.S....

1 min read

Pat McKeough

Growth Stocks

Strong quarter for Adobe

ADOBE INC. $358 is buy. The company (Nasdaq symbol ADBE; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 457.8 million; Market cap: $163.9 billion; Price-to-sales ratio: 9.5; No dividends paid since June 2005; TSINetwork Rating: Average; www.adobe.com) makes software that lets computer users create, edit and share documents in the popular PDF format....

1 min read

Pat McKeough

Growth Stocks

Get fintech exposure with much less risk

In our view, the recent bankruptcy of cryptocurrency exchange operator FTX Trading highlights the dangers of investing in potentially disruptive fintech (the combination of financial services and technology services). We prefer these three well-established fintechs, which have innovative products and a long history of rising revenue and earnings.

BROADRIDGE FINANCIAL SOLUTIONS INC....

5 min read

Pat McKeough

Growth Stocks

Microsoft adds AI expertise

MICROSOFT CORP. $241 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: $1.8 trillion; Price-to-sales ratio: 8.9; Dividend yield: 1.1%; TSINetwork Rating: Above Average; www.microsoft.com) has increased its investment in OpenAI....

1 min read

Pat McKeough

Growth Stocks

ResMed makes a savvy buy

RESMED INC., $225.97, is a buy. The company (New York symbol RMD; TSINetwork Rating: Average) (www.resmed.com; Shares outstanding: 146.5 million; Market cap: $33.1 billion; Dividend yield: 0.7%) makes medical devices used to treat patients with sleep apnea as well as chronic obstructive pulmonary disease and other respiratory conditions.

With each machine ResMed sells, it acquires a long-term replacement-parts customer....

1 min read

Pat McKeough

Growth Stocks

Your niche financials have gains ahead

ACI Worldwide and Broadridge both have winning business models in expanding markets. We believe that will lead to strong growth in future years. Both are buys.

ACI WORLDWIDE, $26.38, is a buy. The firm (Nasdaq symbol ACIW; TSINetwork Rating: Extra Risk) (Shares o/s: 114.0 million; Market cap: $3.0 billion; No divds.) is a leading software provider for processing transactions by credit cards, debit cards, ATMs, point-of-sale terminals and interbank systems....

2 min read

Pat McKeough

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Investors Association of Canada
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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.