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

FICO ready to add more value

FAIR ISAAC CORP. $448 is a buy, but only for highly aggressive investors. The company (New York symbol FICO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 25.3 million; Market cap: $11.3 billion; Price-to-sales ratio: 8.3; Dividend suspended June 2017; TSINetwork Rating: Average; www.fico.com) is best known for its FICO Scores software....

1 min read

Pat McKeough

Growth Stocks

Buy these techs ahead of their next surge

Technology stocks generally move up and down with the overall economy. Now that a recession seems likely, businesses and consumers are scaling back their spending on new computers and software.

We feel now—ahead of the next cyclical upswing—is a good time to add high-quality tech stocks with solid long-term outlooks....

5 min read

Pat McKeough

Growth Stocks

Visa lifts your dividend 20%

VISA INC. $203 is a buy. The company (New York symbol V; Conservative Growth Portfolio, Finance sector; Shares outstanding: 2.1 billion; Market cap: $426.3 billion; Price-to-sales ratio: 14.6; Dividend yield: 0.9%; TSINetwork Rating: Above Average; www.visa.com) operates the world’s largest electronic-payments network....

1 min read

Pat McKeough

Growth Stocks

Savvy strategies power their sales gains

During the pandemic, both Domino’s Pizza and Chipotle implemented savvy strategies to support their businesses. Now, as the economy normalizes, we think each is well-positioned to capitalize on its popular offerings to keep attracting dine-in, pick-up and takeout customers....

2 min read

Pat McKeough

Growth Stocks

Amazon.com makes moves to keep and attract workers

Amazon is now making some aggressive moves to ensure that it can successfully compete in the tight market for labour. We think this will pay off for the company, and its shareholders.

AMAZON.COM INC., $115.07, is a buy. The company (Nasdaq symbol AMZN; TSINetwork Rating: Average) (www.amazon.com; Shares o/s: 10.2 billion; Market cap: $1.2 trillion; No divds.) is now raising the average starting pay of its warehouse and transportation workers to more than $19 per hour from $18.

The wage hike is aimed at helping the company attract and retain workers in a tightening U.S....

1 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:

ADOBE INC., $299.83, is a buy. The company’s (Nasdaq symbol ADBE; TSINetwork Rating: Average) (www.adobe.com; Shares outstanding: 464.9 million; Market cap: $136.2 billion; No dividends paid) decision a few years ago to switch to selling its programs as ongoing subscriptions instead of one-time purchases continues to pay off for investors: In the three months ended September 2, 2022, revenue rose 12.7%, to a record $4.43 billion from $3.94 billion.

Earnings climbed 9.3%, to $3.40 a share from $3.11 a year earlier.

Adobe also spends a high 17% of its sales on research to stay ahead of the competition and add to its market share....

2 min read

Pat McKeough

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

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Chuck Chakrapani, PhD
Investors Association of Canada
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Subscriber since 1996. Inner Circle Member Since 2006
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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.