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 rose 3.7% at Restaurant Brands

Earnings rose 3.7% at Restaurant Brands

Restaurant Brands’ shares have jumped 22% in the past year, and are now just below their all-time high. That big gain is largely due to the company’s success at fueling post-pandemic growth with more drive-thru outlets and improved mobile ordering apps. The company is also… Read More

Earnings popped 9.1% at Cintas

Improved sales to airlines and hotels helped generate an 8.1% revenue jump for Cintas during the most-recent quarter.

The shares aren’t cheap as the stock trades at 34.1 times the company’s 2024 earnings forecast, but the firm continues to expand its niche dominance and grow profits.

For a rising portfolio

Learn everything you need to know in 'How to Find the Best Growth Stocks' for FREE from The Successful Investor.

Canadian Growth Stocks: CGI Group, CAE Inc., Fortis Inc. Stock and more.

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CINTAS… Read More

Earnings jumped 30.4% at FirstService

Earnings jumped 30.4% at FirstService

FirstService is hitting new highs thanks to strong demand for its residential services and recurring contracts. We still like its long-term outlook due to its strong brands and high share of niche markets.

In the meantime, it retains a strong balance sheet while both revenues and… Read More

Earnings rose 16.9% at CGI

Earnings rose 16.9% at CGI

We picked CGI as your #1 Aggressive Buy for 2023. This is the seventh year in a row we’ve selected the firm as a top buy, and our readers have profited from the stock’s 114% rise over that time. Compare that to the 32% gain… Read More

Earnings just rose 10.9% at Metro

Earnings just rose 10.9% at Metro

Improved food and drug sales led to a 9.6% revenue jump for Metro during the most-recent quarter.

While labour issues may affect costs in parts of the company’s operation, it’s dominant market share should allow it to cope with any complications.

The stock trades at 15.0 times… Read More

Get Fedex before earnings lift again

Get Fedex before earnings lift again

Fedex shares shot up to $320 in 2021 as the COVID-19 lockdowns prompted consumers to buy more goods online. That spurred strong demand for its delivery services. The stock then fell to $142 in September 2022 as stores re-opened and online shopping volumes leveled off… Read More

Ride the digital sales wave with Yum

Ride the digital sales wave with Yum

Yum rebounded strongly as COVID-19 lockdowns ended and restaurants fully reopened. In fact, the stock is now trading close to their all-time highs.

Part of that gain is due to its shift to an “asset-light” business model. That means franchisees are responsible for operating and maintaining… Read More