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.

Read More Close

Growth Stocks Library Archives

Growth Stocks

CGI expands in Europe

CGI INC. $105 is your #1 Aggressive Buy for 2022. Through shares in the company (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 239.7 million; Market cap: $25.2 billion; Price-to-sales ratio: 2.1; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) investors tap Canada’s largest provider of computer-outsourcing services....

1 min read

Pat McKeough

Growth Stocks

A new buy for aggressive investors

In February 2021, parent company Telus (page 61) set up its Telus International subsidiary as a separate, publicly listed company and sold shares. So far, the new stock has moved mostly sideways, partly due to the impact of the pandemic on business spending....

2 min read

Pat McKeough

Growth Stocks

Parts shortages hurt spinoff benefits

HOWMET AEROSPACE INC. $34 is a hold. The company (New York symbol HWM; Manufacturing & Industry sector; Shares outstanding: 417.9 million; Market cap: $14.2 billion; Price-to-sales ratio: 2.9; Dividend yield: 0.2%; TSINetwork Rating: Average; www.howmet.com) makes a variety of industrial parts, from jet engine components and fasteners to forged aluminum wheels.

The company continues to benefit from rising demand as the easing of COVID-19 restrictions spur air travel volumes....

1 min read

Pat McKeough

Growth Stocks

Use these updates to enhance your returns

QUAKER CHEMICAL CORP. $144 is still a buy. The company (New York symbol KWR; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 17.9 million; Market cap: $2.6 billion; Price-to-sales ratio: 1.4; Dividend yield: 1.2%; TSINetwork Rating: Average; www.quakerhoughton.com) acquired rival specialty chemicals maker Houghton International in August 2019....

2 min read

Pat McKeough

Growth Stocks

This acquisition is already paying off

BAXTER INTERNATIONAL INC. $75 is a buy. The company (New York symbol BAX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 503.5 million; Market cap: $37.8 billion; Price-to-sales ratio: 2.7; Dividend yield: 1.5%; TSINetwork Rating: Average; www.baxter.com) recently acquired Hill-Rom Holdings Inc....

1 min read

Pat McKeough

Growth Stocks

Investors continue to like this breakup

Agilent and Keysight, which it spun off in November 2014, continue to benefit investors as their split lets each focus on its own niche markets. Since the breakup, Agilent has gained 215%, while Keysight is up 336%.

AGILENT TECHNOLOGIES INC. $120 is a buy. The company (New York symbol A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 299.0 million; Market cap: $35.9 billion; Price-to-sales ratio: 5.7; Dividend yield: 0.7%; TSINetwork Rating: Average; www.agilent.com) makes specialized testing equipment for medical research laboratories and industrial clients....

2 min read

Pat McKeough

Growth Stocks

PS5 sales will pay for buyback plan

SONY GROUP CORP. ADRs $88 is a hold. The Japanese conglomerate (New York symbol SONY; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.2 billion; Market cap: $105.6 billion; Price-to-sales ratio: 1.4; Dividend yield: 0.5%; TSINetwork Rating: Average; www.sony.com) continued to benefit from strong consumer demand for video games due to COVID-19 lockdowns....

1 min read

Pat McKeough

Growth Stocks

Two ways to diversify your Finance holdings

These legacy industrial conglomerates are now breaking up into smaller firms. Eliminating their “holding company discounts” should unlock value for shareholders. However, ABB has a brighter short-term outlook than GE.

ABB LTD. ADRs $30 is a buy. This Swiss-based company (New York symbol ABB; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 2.0 billion; Market cap: $60.0 billion; Price-to-sales ratio: 2.0; Dividend yield: 2.9%; TSINetwork Rating: Above Average; www.abb.com) plans to narrow its focus to its main electrification and automation businesses.

Under that strategy, the company will sell or spinoff its turbocharging business (called Accelleron) later this year....

2 min read

Pat McKeough

Growth Stocks

Birchcliff Energy still has room to rise

Oil and gas stocks have moved up lately as the U.S. and other economies recover—and with the war in Ukraine.

We continue to recommend that most investors maintain some exposure to the oil and gas industry as part of a balanced portfolio. But to cut risk, you should stick with producers that have positive cash flow even in times of low energy prices....

4 min read

Pat McKeough

Growth Stocks

Government backing supports these buys

Both Calian and WELL Health have had a major plus on their side during COVID-19 uncertainty. Specifically, the two get most of their revenue from governments. For Calian, revenue generated from federal departments and agencies currently represent about 69% of the total....

2 min read

Pat McKeough

Testimonials

The cornerstones of Pat’s strategy–value, diversification and timelines–make his newsletter, The Successful Investor, highly profitable while minimizing risk. His advice is no-nonsense, down-to-earth and based on solid research. You’ll know what to invest in and what to avoid.

Chuck Chakrapani, PhD
Investors Association of Canada
The older I get the better dividends look. For retirees and would-be retirees who want to sleep at night, I can’t think of a better source of information on reliable growing dividend income than Pat McKeough’s newsletter, Dividend Advisor.

Jonathan Chevreau
Financial Post Columnist
As a manager of more than $500 million in mutual funds, I have access to the best brokerage research available in this country. But I still take time to read Pat McKeough’s premium newsletters

John Sartz
I appreciate the 25 years of above market returns I received by following your advice. at least 95% of my investment decisions were based on TSI recommendations.

Chuck J.
Subscriber since 1996. Inner Circle Member Since 2006
The newsletters I receive in Inner Circle Pro are fantastic! I have been following Pat’s advice for years and everything he has said has been amazing. His commentaries are brilliant, insightful, educational, rational and balanced. My returns are almost double the TSE and I have referred many of my friends who have switched over to your services.

Walter H.
Inner Circle Pro subscriber

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.