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:

  1. Invest mainly in well-established companies;
  2. Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
  3. 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 Post Archives

Cintas Corp. just grew earnings 19.8%

Cintas Corp. just grew earnings 19.8%

Market leaders like Cintas Corp. use their dominance to leverage their scale and expertise to drive growth. When combined with varied revenue streams, this diversification reduces risk and enhances revenue stability.

That’s how this company has consistently grown revenues and earnings – it’s a top… Read More

FirstService reports 15.9% revenue surge

FirstService reports 15.9% revenue surge

Fewer weather-related projects and higher interest costs are impacting FirstService’s bottom line but we expect the earnings dip to be temporary as the firm continues to make smart acquisitions in a largely fragmented industry.

 The stock trades at 35.9 times the company’s forward earnings forecast, a.. Read More

Earnings jumped 6.1% at CGI

Earnings jumped 6.1% at CGI

CGI’s shares hit a record high of $160.40 on March 21, 2024, but dropped on fears that businesses may cut spending on technology services as they cope with higher operating costs and interest rates.

However, that may be a false economy, as the company helps… Read More

Earnings grew 23.3% at Stantec

Earnings grew 23.3% at Stantec

The firm is narrowing its focus to climate solutions, infrastructure projects, and digital technologies, a strategic shift expected to drive annual revenue growth (excluding acquisitions) by approximately 7% per year.

Meanwhile, management reported an 11.5% increase in revenue in the most recent quarter as well as… Read More