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:
Invest mainly in well-established companies;
Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
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.
Thomson Reuters has soared 160% for our subscribers in the past five years. That’s mainly because it sold its financial information business and used the proceeds to reward investors. The company is now adding artificial intelligence features to its legal and tax information products, which… Read More
RESTAURANT BRANDS INTERNATIONAL INC. $95 is a buy for aggressive investors. The fast-food operator (Toronto symbol QSR, Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 450.8 million; Market cap: $42.8 billion; Price-to-sales ratio: 3.9; Dividend yield: 3.4%; TSINetwork Rating: Average; www.rbi.com) has 31,525 outlets in over 100 countries, comprised… Read More
SUNCOR ENERGY INC. $55 is a buy. Canada’s largest integrated oil producer (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.3 billion; Market cap: $71.5 billion; Price-to-sales ratio: 1.3: Dividend yield: 4.1%; TSINetwork Rating: Average; www.suncor.com) is now raising your quarterly dividend by 4.6%. Starting with… Read More
CAE INC. $30 is still a buy. The company (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 318.6 million; Market cap: $9.6 billion; Price-to-sales ratio: 2.0; Dividend suspended in March 2020; TSINetwork Rating: Average; www.cae.com) is a leading maker of flight simulators for commercial… Read More
The shares of grocery store operator Metro have jumped 56% in the past five years. They, in fact, hit a new all-time high of $87.94 in November 2024. That gain is largely due to improving efficiency. Retailers typically operate on low margins, so even small… Read More
LOBLAW COMPANIES, $183.77, is a buy. The retailer (Toronto symbol L; Shares outstanding: 303.8 million; Market cap: $55.8 billion; TSINetwork Rating: Above Average; Dividend yield: 1.1%; www.loblaw.ca) company operates 1,106 supermarkets under several banners, including Loblaws, Zehrs, Provigo, Real Canadian Superstore and No Frills.
The company is now building a.. Read More
METRO INC., $85.09, is a buy. The company (Toronto symbol MRU; Shares o/s: 222.7 million; Market cap: $19.0 billion; TSINetwork Rating: Average; Yield: 1.6%; www.metro.ca) has now launched its new MOI rewards program across all of its supermarkets and pharmacies in Ontario. It already offers the program at its… Read More
NCR ATLEOS CORP. $27 (www.ncratleos.com) is a hold. On October 16, 2023, the old NCR Corp. (New York symbol NCR) split itself into two separate firms. One (called NCR Atleos) focuses on automated teller machines, and the other (called NCR Voyix, see below) focuses on digital commerce businesses… Read More
STARBUCKS CORP. $98 is a buy. The coffee chain giant (Nasdaq symbol SBUX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 1.1 billion; Market cap: $107.8 billion; Price-to-sales ratio: 3.0; Dividend yield: 2.5%; TSINetwork Rating: Above Average; www.starbucks.com) is down from its 2021 peak of $121 due to slowing… Read More
GE HEALTHCARE TECHNOLOGIES INC. $89 is a buy. The company (Nasdaq symbol GEHC; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 456.7 million; Market cap: $40.6 billion; Price-to-sales ratio: 2.1; Dividend yield: 0.1%; TSINetwork Rating: Average; www.gehealthcare.com) makes X-ray equipment, MRIs and ultrasound scanners.
On January 3, 2023, General Electric… Read More
KYNDRYL HOLDINGS INC. $24 is still a hold. The company (New York symbol KD; Conservative Growth, Manufacturing & Industry sector; Shares outstanding: 230.5 million; Market cap: $5.5 billion; Price-to-sales ratio: 0.4; No dividend paid; TSINetwork Rating: Average; www.kyndryl.com) helps corporate and government clients manage their datacentres. On November… Read More
Agilent and Keysight are great examples of how spinoffs can deliver big returns for growth investors. In the 10 years since Agilent spun off Keysight (shareholders received one Keysight share for every two shares they held), the stock is up 220%, while Keysight has soared… Read More
INTERNATIONAL FLAVORS & FRAGRANCES INC. $104 is a buy. The maker of compounds that improve the taste of food and the smell of consumer products (New York symbol IFF; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 255.7 million; Market cap: $26.6 billion; Price-to-sales ratio: 2.4; Dividend yield:… Read More
SIX FLAGS ENTERTAINMENT CORP. $39 is a hold. The company (New York symbol SIX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 100.3 million; Market cap: $3.9 billion; Price-to-sales ratio: 1.1; No dividend paid; TSINetwork Rating: Average; www.sixflags.com) took its current form on July 1, 2024 when Cedar Fair… Read More
These three technology stocks continue to hit new highs due to investor enthusiasm for artificial intelligence and its ability to help businesses improve their efficiency and profits. We like the outlook for all three, but see just two as buys right now.
NVIDIA CORP. $140 is… Read More
DANAHER CORP. $256 remains a buy for aggressive investors. The company (New York symbol DHR; Aggressive Growth Portfolio; Manufacturing sector; Shares outstanding 722.2 million; Market cap: $184.9 billion; Price-to-sales ratio: 8.2; Dividend yield: 0.4%; TSINetwork Rating: Above Average; www.danaher.com) makes precision-testing equipment and tools for medical research labs… Read More
The coronavirus pandemic forced the cancellation of most vacation plans. However, the reopening of the economy has spurred strong demand for travel, and both Wyndham, and Travel + Leisure should benefit from that surge. We see each as a buy.
WYNDHAM HOTELS & RESORTS, $81.95, is… Read More
OpenAI’s demonstration of its Sora AI-based video generation tools has spurred fears among investors that Adobe could be disrupted by the new technology and so lag behind. But Adobe has just released Firefly Video Model as a new entry in the field, and it is… Read More
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 are two buys that stand out this month:
ELECTRONIC ARTS, $145.04, is a buy. The company… Read More
You should remain wary of stocks that attract broker/media attention because of high-profile products or services, and their business models. Here’s a closer look at one stock with risks that prospective investors should take into consideration:
SONOS INC., $12.38, (Nasdaq symbol SONO; TSINetwork Rating: Extra Risk) (sonos.com; Shares… Read More
