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

Keysight continues to shine

KEYSIGHT TECHNOLOGIES INC. $176 is a buy for aggressive investors. The company (New York symbol KEYS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 178.5 million; Market cap: $31.4 billion; Price-to-sales ratio: 5.9; No dividend paid; TSINetwork Rating: Average; www.keysight.com) makes an array of devices for testing electronic equipment.

Keysight’s revenue in its fiscal 2022 fourth quarter, ended October 31, 2022, rose 11.5%, to $1.44 billion from $1.29 billion a year earlier, on rising demand from makers of computer chips, automobiles and high-speed telecommunications equipment....

1 min read

Pat McKeough

Growth Stocks

Savvy strategies power their sales gains

Both DraftKings and Warner Music soared during the pandemic but have now given up most of those gains. We still like their competitive business models, which remain intact, and each stock is especially attractive for new buying right now.

DRAFTKINGS INC., $14.86, is a buy. The company (Nasdaq symbol DKNG; TSINetwork Rating: Extra Risk) (www.draftkings.com; Shares o/s: 841.7 million; Market cap: $12.5 billion; No dividend) currently provides sports betting in several U.S....

2 min read

Pat McKeough

Growth Stocks

Here are updates on two of your buys

Long-time readers know that we keep you informed of important news about the stocks we cover. That means highlighting developments and plans that promise to brighten prospects for investors. Here are two buys that stand out this month:

ELECTRONIC ARTS, $129.34, is a buy. The company (Nasdaq symbol EA; TSINetwork Rating: Extra Risk) (www.ea.com; Shares o/s: 276.1 million; Market cap: $35.6 billion; Yield: 0.6%) will now develop three video games inspired by Marvel comic book characters....

2 min read

Pat McKeough

Growth Stocks

Merck donates its ebola vaccine

MERCK & CO. INC., $99.93, is a #1 buy for 2022. The drugmaker (New York symbol MRK; TSINetwork Rating: Above Average) (www.merck.com; Shares outstanding: 2.5 billion; Market cap: $252.5 billion; Dividend yield: 2.8%) now plans to produce and donate its investigational Sudan ebola virus vaccine to a global non-profit organization’s research program in Uganda....

1 min read

Pat McKeough

Growth Stocks

Here’s a stock you should avoid

The plunge for 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. You should remain wary of that last group despite any broker/media praise for their business models....

1 min read

Pat McKeough

Growth Stocks

TMO adds a diagnostics leader

THERMO FISHER SCIENTIFIC INC., $536.01, is a buy. The company (New York symbol TMO; TSINetwork Rating: Average) thermofisher.com; Shares o/s: 392.2 million; Market cap: $214.2 billion; Dividend yield: 0.2%) recently bought The Binding Site Group, a global leader in specialty diagnostics, for $2.6 billion.

Serving clinicians and laboratory professionals worldwide, The Binding Site provides specialty diagnostics and instruments to better pinpoint and manage blood cancers and immune system disorders....

1 min read

Pat McKeough

Growth Stocks

Couche-Tard expands into new growth areas

Alimentation Couche-Tard not only adapted to the pandemic, it thrived—and the shares are now trading at all-time highs. Meanwhile, the company is entering a couple of new markets. For one, it’s rolling out electric vehicle (EV) chargers at its U.S. and Canadian stores....

2 min read

Pat McKeough

Growth Stocks

MP taps rare earths

MP MATERIALS CORP., $33.37, is a buy. The company (New York symbol MP; TSINetwork Rating: Extra Risk) (www.mpmaterials.com; Shares outstanding: 177.5 million; Market cap: $6.3 billion; No dividends paid) is the owner and operator of the Mountain Pass mine, the only significant rare-earth commercial mining and processing site in North America.

Rare-earth elements are used in a variety of modern devices and applications: magnets in small and large motors; glass additives and glass polishing compounds; rechargeable batteries; television and computer screens; lighting; X-ray machines; and lasers.

In the quarter ended September 30, 2022, MP Materials’ revenue shot up 24.8%, to $124.4 million from $99.8 million a year earlier....

1 min read

Pat McKeough

Growth Stocks

Steris sells into attractive niches

The COVID-19 pandemic resulted in short-term disruptions to elective medical procedures, and so demand for Steris’s hospital equipment. But going forward, it remains in a great position to profit from the favourable long-term trend of an aging population. And with two key acquisitions, it has expanded into lucrative new markets....

2 min read

Pat McKeough

Growth Stocks

Buy these two for their strong brands

These top providers of real estate services continue to rebound from their 2020 lows as businesses and individuals adjust their properties for post-pandemic uses. We like the outlook for both, particularly as their strong market position and brands make it easier for them to pass along higher labour and other costs to their clients.

FIRSTSERVICE CORP....

2 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.