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Growth Stocks

New U.S. tariffs on imported goods have weighed on the shares of these two railways. However, both are doing a good job controlling their costs, which should continue to fuel their earnings.

CANADIAN PACIFIC KANSAS CITY LTD. $102 is a buy. The company (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 930.5 million; Market cap: $94.9 billion; Price-to-sales ratio: 6.4; Dividend yield: 0.9%; TSINetwork Rating: Above Average; www.cpkcr.com) ships freight over a 32,190-kilometre rail network that connects major hubs in Canada, the U.S....

2 min read

Pat McKeough

Growth Stocks

Tariffs are not the only challenge for Saputo

Saputo shares are up as it looks like Canada will defend the domestic dairy industry during negotiations for any new North American trade deal. Even if foreign import quotas are eased, driving down prices, the company’s large presence in Canada and the U.S....

2 min read

Pat McKeough

Growth Stocks

Toromont’s outlook remains bright

TOROMONT INDUSTRIES LTD. $112 is a buy. The company (Toronto symbol TIH; Aggressive Growth Portfolio; Manufacturing sector; Shares outstanding: 81.3 million; Market cap: $9.1 billion; Price-to-sales ratio: 1.8; Dividend yield: 1.9%; TSINetwork Rating: Extra Risk; www.toromont.com) distributes a broad range of Caterpillar and other branded industrial equipment in eastern Canada and the Eastern Seaboard of the U.S....

1 min read

Pat McKeough

Energy Stocks

Record output for Suncor

SUNCOR ENERGY INC. $47 is a buy. Canada’s largest integrated oil producer (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.2 billion; Market cap: $56.4 billion; Price-to-sales ratio: 1.1; Dividend yield: 4.9%; TSINetwork Rating: Average; www.suncor.com) produced a record 853,200 barrels a day in the first quarter of 2025, up 2.1% from 835,300 barrels a year earlier....

1 min read

Pat McKeough

Value Stocks

Top banks can handle the current turmoil

Uncertainty over new tariffs will probably force Canada’s big banks to set aside more funds for the potential growth in bad loans. However, each of the Big 5 remains well capitalized, which will help to absorb any credit losses.

ROYAL BANK OF CANADA $166 is a buy. The bank (Toronto symbol RY; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.4 billion; Market cap: $232.4 billion; Price-to-sales ratio: 3.9; Dividend yield: 3.6%; TSINetwork Rating: Above Average; www.rbc.com) continues to benefit from its March 2024 acquisition of the Canadian operations of U.K.-based HSBC Holdings plc (New York symbol HSBC) for $15.5 billion.

So far, eliminating overlapping operations has cut $524 million from Royal’s annual costs....

6 min read

Pat McKeough

Energy Stocks

Refineries lift cash flow

IMPERIAL OIL LTD. $95 is a buy. The company (Toronto symbol IMO; Conservative and Income Growth Portfolios, Resources sector; Shares outstanding: 509.0 million; Market cap: $48.4 billion; Price-to-sales ratio: 1.0; Dividend yield: 3.0%; TSINetwork Rating: Average; www.imperialoil.ca) gets over 90% of its production from oil sands operations in Alberta....

1 min read

Pat McKeough

Growth Stocks

FirstService has special advantages

This year, we picked FirstService as your #1 Aggressive Buy. We feel the company has several advantages that will continue to fuel your gains for many years to come, well beyond 2025.

Those advantages include FirstService’s ability to acquire smaller firms and improve their profitability....

4 min read

Pat McKeough

How To Invest

Q: I want to buy a U.S. stock today. In order to realize a gain on that U.S. stock, do I need to wait for the U.S. dollar to rise against the Canadian dollar before I sell the stock?

A: The short answer is “no.” That’s because you pay more in Canadian dollars when you buy U.S. stocks, but you get more Canadian dollars back when you sell.

Let’s say you want to buy a U.S. stock trading at $100 U.S.

This would cost you $137.86 in Canadian dollars at today’s exchange rate.

Let’s say the stock rose 5%, to $105 U.S.

If you sold it, and the exchange rate remained the same, you would get $144.76 in Canadian dollars.

That’s also an increase of 5%.

At the same time, exchange rates do change....

1 min read

Pat McKeough

How To Invest

What is Pat’s commentary for the week of May 6, 2025

Broadridge is far from a household name outside of the financial sector. Regardless, since it was spun off by Automatic Data Processing (symbol ADP on Nasdaq) in 2007, the company has become a dominant player.

We added the stock as a buy in our February 2008 issue of Wall Street Stock Forecaster at $22 a share....

10 min read

Pat McKeough

How To Invest

Power Growth Investor Hotline – Friday, May 2, 2025

BROADRIDGE FINANCIAL SOLUTIONS INC., $232.91, is a buy. The company, symbol BR on New York, serves the investment industry in three main areas: investor communications, securities processing, and transaction clearing.

Broadridge is best known for processing and distributing proxies and regulatory filings for nearly every publicly traded U.S....

6 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

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.

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.