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

Here are key updates on your holdings

LOBLAW COMPANIES LTD. $116 is a buy. The country’s largest supermarket operator (Toronto symbol L; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 327.7 million; Market cap: $38.0 billion; Price-to-sales ratio: 0.7; Dividend yield: 1.4%; TSINetwork Rating: Above Average; www.loblaw.ca) paid $832 million for Lifemark Health Group in May 2022....

2 min read

Pat McKeough

Growth Stocks

Legacy losses continue to weigh on SNC

These two engineering firms continue to benefit as governments and businesses plan new infrastructure and other projects on easing of the COVID-19 pandemic. Still, Stantec remains the better choice for your new buying as SNC continues to wind down its unprofitable legacy projects.

STANTEC INC....

2 min read

Pat McKeough

Growth Stocks

Lower costs will help Saputo cope

Dairy products maker Saputo recently began a multi-year restructuring plan to improve productivity and help it cope with rising fuel, labour and other costs. It also stands to gain as restaurants see business ramp up following COVID lockdowns. Still, the stock will likely trade in a narrow range until the company completes that restructuring.

SAPUTO INC....

2 min read

Pat McKeough

Growth Stocks

Loan demand may have peaked

HOME CAPITAL GROUP INC. $28 remains a hold. The company (Toronto symbol HCG; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 42.6 million; Market cap: $1.2 billion; Price-to-sales ratio: 2.5; Dividend yield: 2.1%; TSINetwork Rating: Speculative; www.homecapital.com) is a mortgage lender serving borrowers who fail to meet the stricter standards of Canada’s big banks and other larger, traditional lenders.

Mortgage originations in the second quarter of 2022 jumped 42.8% from a year earlier....

1 min read

Pat McKeough

Growth Stocks

Metro invests to cut costs

METRO INC., $70.14, is a buy. The company (Toronto symbol MRU; Shares o/s: 239.9 million; Market cap: $16.8 billion; TSINetwork Rating: Average; Dividend yield: 1.6%; www.metro.ca) operates 950 grocery stores and 650 drugstores, in Quebec, Ontario and New Brunswick.

Metro has now opened its new $400 million distribution centre in Toronto that uses automated equipment to handle fresh and frozen foods....

1 min read

Pat McKeough

Growth Stocks

Loblaw expands delivery

LOBLAW COMPANIES, $116.15, is a buy. The retailer (Toronto symbol L; Shares outstanding: 327.6 million; Market cap: $38.2 billion; TSINetwork Rating: Above Average; Dividend yield: 1.4%; www.loblaw.ca) continues to expand its home delivery service, which saw strong demand and growth during COVID-19 lockdowns.

Loblaw has formed a new alliance with U.S.-based delivery company DoorDash Inc....

1 min read

Pat McKeough

Growth Stocks

Updating our Aggressive stocks: NCR, Diebold Nixdorf & Idexx Laboratories

NCR CORP. $31 (www.ncr.com) is still a buy. The company makes automated teller machines (ATMs), cash registers, self-serve checkouts and kiosks for theatres and arenas....

1 min read

Pat McKeough

Growth Stocks

New businesses hold promise

MOTOROLA SOLUTIONS INC. $230 is a buy. The company (New York symbol MSI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 168.2 million; Market cap: $38.7 billion; Price-to-sales ratio: 4.6; Dividend yield: 1.4%; TSINetwork Rating: Average; www.motorolasolutions.com) recently paid $22 million for Videotec S.p.A....

1 min read

Pat McKeough

Growth Stocks

Three more updates to protect your gains

APA CORP. $35 is a hold. The oil producer (New York symbol APA; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 338.2 million; Market cap: $11.8 billion; Price-to-sales ratio: 1.4; Dividend yield: 1.4%; TSINetwork Rating: Average; www.apacorp.com) and its partner Total SA recently announced a major offshore discovery near South America’s Suriname....

2 min read

Pat McKeough

Growth Stocks

Sale lets IFF pay down debt

INTERNATIONAL FLAVORS & FRAGRANCES INC. $121 is a buy. The company (New York symbol IFF; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 254.8 million; Market cap: $30.8 billion; Price-to-sales ratio: 2.5; Dividend yield: 2.6%; TSINetwork Rating: Above Average; www.iff.com) merged with the nutrition and biosciences business of DuPont (New York symbol DD) in February 2021....

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.