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Growth Stocks

Texas Roadhouse has three dining concepts

TEXAS ROADHOUSE, $167.20, is a buy. The company (Nasdaq symbol TXRH; TSINetwork Rating: Extra Risk) (texasroadhouse.com; Shares outstanding: 66.2 million; Market cap: $11.1 billion; Dividend yield: 1.6%) is a full-service, casual-dining restaurant chain with 806 locations spread across 49 U.S. states and 10 foreign countries.

Each of those restaurants operates under one of three banners—Texas Roadhouse (736 locations), sports restaurant Bubba’s 33 (54), and Jaggers (16).

2 min read

Pat McKeough

Growth Stocks

Eli Lilly teams up with Nvidia on artificial intelligence

ELI LILLY & CO., $1,049.60, is still a buy. The company (New York symbol LLY; TSINetwork Rating: Above Average) (www.lilly.com; Shares outstanding: 896.5 million; Market cap: $939.4 billion; Dividend yield: 0.6%) believes the supercomputer and its AI capabilities will help identify new molecules and speed up the years-long development process. The company will use the system for other functions such as improving clinical trials, manufacturing and sales.

1 min read

Pat McKeough

Growth Stocks

Adobe adds more AI

ADOBE INC., $318.11, is a buy. The company (Nasdaq symbol ADBE; TSINetwork Rating: Average) (www.adobe.com; Shares outstanding: 418.5 million; Market cap: $133.2 billion; No dividends paid) makes programs that let computer users create, edit and share documents in the popular PDF format. It also makes a variety of electronic-publishing programs.

1 min read

Pat McKeough

Value Stocks

Intact’s acquisitions building value

INTACT FINANCIAL, $282.38, is a Power Buy. The insurer (Toronto symbol IFC; TSINetwork Rating: Average) (www.intactfc.com; Shares outstanding: 177.7 million; Market cap: $50.2 billion; Dividend yield: 1.9%) is Canada’s largest provider of property and casualty coverage: its policies cover more than five million individuals and businesses. Intact Insurance, Canada BrokerLink and belairdirect are its major brands.

In a bid to add value for investors, the company acquired OneBeacon Insurance Group for $1.7 billion U.S. in 2017. The Minnesota-based insurance holding company focuses on property-casualty coverage. Through its businesses, the firm provides a range of specialty insurance products (marine, sports, entertainment and more).

2 min read

Pat McKeough

Spinoffs

Here’s our Spinoff Stock Portfolio for December 2025

Why we like spinoffs so much

We think that spinoffs are the closest thing you can find to a sure thing for two main reasons:

1) The management of a parent company will only hand out shares in a subsidiary to its own investors if it’s all but certain that business, and the parent, will be better off after the spinoff.

2) Spinoffs involve a lot of work and legal fees. The parent will only spin off the unwanted subsidiary if it can’t sell the stock for what it feels it’s worth.

1 min read

Pat McKeough

Spinoffs

Xanadu Quantum to go public

XANADU QUANTUM TECHNOLOGY INC. has agreed to merge Crane Harbor Acquisition Corp. (Nasdaq symbol CHAC), a special purpose acquisition company (SPAC). The combined company’s shares will trade on both the Toronto and New York exchange (it has not yet announced the trading symbol). Investors should expect a market cap of $3.6 billion U.S.

Based in Toronto, Xanadu is developing quantum computing hardware and software. Quantum computers use electrons, rather than transistors, to carry out a vast number of calculations simultaneously. That makes them much faster than regular computers.

1 min read

Pat McKeough

Spinoffs

Use these stock updates to your benefit

TEGNA INC. $20 is a hold. The company (New York symbol TGNA; Consumer sector; Shares outstanding: 160.9 million; Market cap: $3.2 billion; Dividend yield: 2.5%; Takeover Target Rating: Highest; www.tegna.com) owns 64 TV stations and two radio stations in 51 U.S. markets.

In June 2015, Gannett Co. Inc. (New York symbol GCI) spun off its newspaper operation as a separate company operating under the Gannett name. The remaining broadcasting and Internet unit was then renamed Tegna. Under the deal, for every two shares investors held, they received one share of the spinoff company and two TGNA shares.

2 min read

Pat McKeough

Spinoffs

We still like this parent and its spinoff

Lab equipment maker Danaher has a long history of using spinoffs to streamline its operations and boost shareholder value.

Danaher’s latest spinoff came in September 2023 when it handed out shares in Veralto Corp. (New York symbol VLTO), which makes products that monitor water quality. Investors received one Veralto share for every three Danaher shares they held.

Danaher is up slightly since the split, partly due to government cuts to research projects. However, cost cuts will improve its profitability. Veralto, on the other hand, is up 16% as demand for equipment related to water-cooling systems in new AI datacentres continues to grow.

2 min read

Pat McKeough

Spinoffs

AI helps boost XPO’s earnings

XPO INC. $127 is a spinoff buy. The company (New York symbol XPO; Manufacturing sector; Shares outstanding: 117.4 million; Market cap: $14.9 billion; No dividends paid; Takeover Target Rating: Medium; www.xpo.com) provides full-truckload and less-than-truckload (LTL) services in North America and Europe.

XPO’s revenue in the quarter ended September 30, 2025, rose 2.8%, to $2.11 billion from $.05 billion a year earlier. If you exclude currency exchange rates, revenue was flat. Thanks to savings from a restructuring plan, as well as using AI to optimize its pick-up and delivery schedules, earnings before unusual items gained 11.5%, to $1.07 a share (or a total of $128 million) from $0.96 a share (or $113 million).

1 min read

Pat McKeough

Spinoffs

These spinoffs should rebound

In August 2021, trucking firm XPO (see box) set up its logistic business as separate firm GXO Logistics Inc. XPO shareholders received one GXO share for each of their XPO shares.

In November 2022, XPO then spun off its truck brokerage business as a separate firm called RXO Inc. Investors received one RXO share for each XPO share they held.

Since their splits, GXO is down 22% while RXO has dropped 49%. That’s due to fears of a slowing economy and the impact of tariffs. However, their recent acquisitions should set them up for strong gains as the economy rebounds.

2 min read

Pat McKeough

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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.