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 just jumped 20.1% at Toromont

Earnings just jumped 20.1% at Toromont

A rebound in construction activity in the wake of the COVID-19 pandemic continues to push up earnings at Toromont, a dealer of bulldozers, backhoes and other heavy equipment. Higher sales are also increasing long-term demand for maintenance and repair services.

That’s why this firm’s a top… Read More

Earnings just rose 7.4% at ResMed

Earnings just rose 7.4% at ResMed

Long-time readers know that we aim to keep you informed of important news about the stocks we cover. That means highlighting developments and plans that promise to bolster investor gains.

ResMed is one that stands out this month: that’s because the outlook for sleep apnea… Read More

Earnings rose 23.7% at Well Health

Earnings rose 23.7% at Well Health

Well Health offers investors a major plus: it gets most of its revenue from Canada’s government-backed, recession-resilient health-care sector.

That’s a key benefit because the health-care sector is a government-backed, recession-resilient industry, and this firm is shaping up to be a major player. The company is… Read More

Earnings just rose 11.8% at TJX

Earnings just rose 11.8% at TJX

Long-time readers know that we aim to keep you informed of important news about the stocks we cover. That means highlighting developments and plans that promise to bolster investor gains. Here’s one that stands out this month.

A recent dividend payout raise as well as revenues… Read More