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Growth Stocks

TOROMONT INDUSTRIES LTD. $106 is a buy. The company (Toronto symbol TIH; Aggressive Growth Portfolio; Manufacturing sector; Shares o/s: 82.3 million; Market cap: $8.7 billion; Price-to-sales ratio: 2.2; Dividend yield: 1.5%; TSINetwork Rating: Extra Risk; www.toromont.com) distributes bulldozers, backhoe loaders and drills, including Caterpillar machinery, in eastern Canada and along the U.S....

1 min read

Pat McKeough

Growth Stocks

Stantec remains the better choice

These two engineering firms continue to win new public works contracts. However, we prefer Stantec for your new buying as SNC’s shares will likely stay in a narrow range while it winds down its less-profitable legacy projects.

STANTEC INC. $71 is a buy. The stock (Toronto symbol STN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 110.8 million; Market cap: $7.9 billion; Price-to-sales ratio: 1.5; Dividend yield: 1.0%; TSINetwork Rating: Extra Risk; www.stantec.com) offers you exposure to this leading seller of consulting, project-delivery, design and technology services....

2 min read

Pat McKeough

Energy Stocks

Imperial Oil invests to diversify revenue

Improving crude prices are letting Imperial Oil invest in new green energy projects that will help it comply with more-stringent environmental regulations. The company is also using its strong cash flow to reward investors.

IMPERIAL OIL LTD. $70 is a buy. This company (Toronto symbol IMO; Conservative and Income Growth Portfolios, Resources sector; Shares outstanding: 584.2 million; Market cap: $40.9 billion; Price-to-sales ratio: 0.8; Dividend yield: 2.5%; TSINetwork Rating: Average; www.imperialoil.ca) gets about 90% of its production from oil sands operations in Alberta....

1 min read

Pat McKeough

Growth Stocks

Maple Leaf re-formulates fake meat

MAPLE LEAF FOODS INC. $26 is still a hold. The company (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 123.7 million; Market cap: $3.2 billion; Price-to-sales ratio: 0.7; Dividend yield: 3.1%; TSINetwork Rating: Average; www.mapleleaffoods.com) sells fresh and prepared meats under the Maple Leaf and Schneider labels.

In the past few years, Maple Leaf has acquired firms that make plant-based hamburgers, hot dogs and other protein products under its Lightlife and Field Roast brands....

1 min read

Pat McKeough

Energy Stocks

Refinery purchase still on track

CENOVUS ENERGY INC. $26 is a buy. The company (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $49.4 billion; Price-to-sales ratio: 0.7; Dividend yield 1.8%; TSINetwork Rating: Extra Risk; www.cenovus.com) recently agreed to buy the 50% of a oil refinery in Toledo, Ohio, that it doesn’t already own....

1 min read

Pat McKeough

Blue Chip Stocks

They can handle higher loan-loss provisions

The current uncertainty caused by rising interest rates and still-high inflation has prompted Canada’s big banks to increase their loan-loss provisions. Even so, those provisions remain well below their 2020 pandemic peaks.

ROYAL BANK OF CANADA $140 is a buy. The bank (Toronto symbol RY; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.4 billion; Market cap: $196.0 billion; Price-to-sales ratio: 3.9; Dividend yield: 3.8%; TSINetwork Rating: Above Average; www.rbc.com) recently agreed to pay $13.5 billion in cash for the Canadian operations of U.K.-based HSBC Holdings plc (New York symbol HSBC)....

6 min read

Pat McKeough

Growth Stocks

Quality brands offset high p/e

FIRSTSERVICE CORP. $191 is a buy for aggressive investors. The company (Toronto symbol FSV; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 44.2 million; Market cap: $8.4 billion; Price-to-sales ratio: 1.8; Dividend yield: 0.6%; TSINetwork Rating: Extra Risk; www.firstservice.com) has two main businesses: FirstService Residential provides property management services such as collecting monthly condominium fees and maintenance services; and FirstService Brands offers a wide variety of property management services through several franchised businesses, including Paul Davis Restoration and CertaPro Painters.

Revenue in the three months ended December 31, 2022, rose 19.0%, to $1.02 billion from $856.9 million a year earlier (all amounts except share price and market cap in U.S....

1 min read

Pat McKeough

Blue Chip Stocks

TD plans for more U.S. growth

Through a series of sharp interest rate increases to curb inflation, the Bank of Canada raised its benchmark rate from just 0.50% in March 2022 to today’s 4.50%.

Higher interest rates are generally good news for banks, as those lenders earn higher interest rates on their loans....

4 min read

Pat McKeough

How To Invest

Q: Pat, I know you don’t like IPOs in general, but what do you think about Allbirds as a stock to buy? Thanks.

A: Allbirds Inc., $3.13, symbol BIRD on Nasdaq (Shares outstanding: 96.2 million; Market cap: $455.5 million; www.allbirds.com), is a global “lifestyle” brand that aims to make more sustainable footwear and apparel products without the use of synthetic petroleum-based fibres like polyester....

3 min read

Pat McKeough

How To Invest

What is Pat’s commentary for the week of February 7, 2023

In February 2018, Becton Dickinson acquired rival medical device maker C.R. Bard (old New York symbol BCR), one of our early Wall Street Stock Forecaster recommendations.

Under the terms of the deal, Bard investors received $222.93 in cash plus 0.5077 of a Becton share for each BCR share they held....

11 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.