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

Loblaw makes a savvy buy

LOBLAW COMPANIES, $111.16, is a buy. The company (Toronto symbol L; Shares outstanding: 333.6 million; Market cap: $37.1 billion; TSINetwork Rating: Above Average; Dividend yield: 1.3%; www.loblaw.ca) has agreed to acquire Lifemark Health Group....

1 min read

Pat McKeough

Growth Stocks

Here are three key updates on your portfolio

OTIS WORLDWIDE CORP. $76 is a buy. The company (Conservative Growth Portfolio; Manufacturing & Industry sector; Shares outstanding: 425.0 million; Market cap: $32.3 billion; Price-to-sales ratio: 2.2; Dividend yield 1.3%; TSINetwork Rating: Average; www.otis.com) is the world’s largest maker of elevators and escalators.

In response to Russia’s invasion of Ukraine, Otis has stopped taking new elevator and escalator orders from customers in that country....

2 min read

Pat McKeough

Growth Stocks

RBI steps back from Russia

RESTAURANT BRANDS INTERNATIONAL INC. $57 is a buy. The company (New York symbol, Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 460.3 million; Market cap: $26.2 billion; Price-to-sales ratio: 5.8; Dividend yield: 3.7%; TSINetwork Rating: Average; www.rbi.com) is the world’s third-largest fast-food operator after McDonald’s (No....

1 min read

Pat McKeough

Growth Stocks

Diageo expands whisky production

DIAGEO PLC ADR $198 is a hold. The company (New York symbol DEO; Conservative Growth Portfolio, Consumer sector; ADRs outstanding: 577.6 million; Market cap: $114.4 billion; Price-to-sales ratio: 5.7; Dividend yield: 2.0%; TSINetwork Rating: Above Average; www.diageo.com) plans to build a new distillery in St....

1 min read

Pat McKeough

Growth Stocks

Higher shipping rates boost FedEx

FEDEX CORP. $221 is a buy. The company (New York symbol FDX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 265.0 million; Market cap: $58.6 billion; Price-to-sales ratio: 0.6; Divd. yield: 1.4%; TSINetwork Rating: Average; www.fedex.com) delivers packages and documents in the U.S....

1 min read

Pat McKeough

Growth Stocks

You should look beyond their high P/Es

Technology stocks such as Alphabet (see page 31) and the three we analyze below tend to trade at somewhat high multiples to their earnings. That can scare away many more-conservative investors.

However, all of these firms are market leaders in their niche fields, which helps shield them from the chip shortages that are hurting tech companies like HP and HP Enterprise (see page 35)....

5 min read

Pat McKeough

Growth Stocks

Visa offsets Russia pullout

VISA INC. $215 is a buy. The company (New York symbol V; Conservative Growth Portfolio, Finance sector; Shares outstanding: 2.1 billion; Market cap: $451.5 billion; Price-to-sales ratio: 16.8; Dividend yield: 0.7%; TSINetwork Rating: Above Average; www.visa.com) has suspended is operations in Russia as a result of that country’s attack on Ukraine....

1 min read

Pat McKeough

Growth Stocks

Stock split adds to Alphabet’s appeal

Alphabet (the parent company of Internet search engine Google) announced that it will split its outstanding shares on a 20-for-1 basis later this year. While the split will have no effect on the total value of the company, the lower share price makes Alphabet more attractive to retail investors.

Meantime, the company continues to profit from the long-term shift by advertisers to the Internet from traditional print and TV platforms....

4 min read

Pat McKeough

Growth Stocks

Goodyear faces much higher costs this year

Goodyear’s longer-term outlook is positive as demand for its tires continues to recover. In addition, it’s making significant investments in future tire technologies, including for electric vehicles. But in the near term, it faces considerable inflationary pressures.

GOODYEAR TIRE & RUBBER, $14.08, is a buy. The manufacturer (Nasdaq symbol GT; TSINetwork Rating: Extra Risk) (www.goodyear.com; Shares outstanding: 281.8 million; Market cap: $3.7 billion; No dividends paid) expects inflationary cost pressures to push its expenses up by $700 million to $800 million in just the first half of this year compared to last year....

1 min read

Pat McKeough

Growth Stocks

You will benefit from their growing markets

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:

GARMIN LTD., $111.93, is a buy. The company (Nasdaq symbol GRMN; TSINetwork Rating: Extra Risk) (Shares o/s: 192.8 million; Market cap: $21.2 billion; Yield: 2.4%) makes GPS devices and software for five different markets: fitness, outdoors, auto, aviation, and marine....

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.