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

Earnings grew 18.6% at Adobe

Earnings grew 18.6% at Adobe

Adobe is one of several that have moved up lately due to investor enthusiasm for artificial intelligence (AI) products. While the shares look expensive in relation to earnings, we still like the company’s long-term prospects.

In fact, the company is a #1 Power Buy for 2024… Read More

Here’s a Look at the Pros and Cons of Small Caps

Unlocking superior returns with small-cap stocks involves navigating the high-risk, high-reward landscape.
Investing in small-cap stocks can offer the potential for superior returns compared to their larger counterparts. However, this opportunity comes with inherent risks. Shares of smaller companies tend to be more volatile, less liquid,… Read More

Earnings jumped 13.3% at ResMed

Earnings jumped 13.3% at ResMed

Rising demand for sleep and respiratory care devices as well as accompanying software offerings led to a 12.5% revenue boost for ResMed during the most-recent quarter.

The firm recently completed its largest acquisition to date as it bought a maker and seller of out-of-hospital software solutions… Read More