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 Library Archives

Our grocery leaders are hitting all-time highs

Both Loblaw and Metro have soared to all-time highs for our subscribers! Meanwhile, we think both stocks still have gains ahead. Indeed, both remain buys.
LOBLAW COMPANIES, $223.80, is a buy. The retailer (Toronto symbol L; Shares o/s: 299.0 million; Market cap: $65.3 billion; TSINetwork Rating: Above Average; Yield:… Read More

Walmart’s outlook remains bright

Walmart’s U.S. stores get about a third of their merchandise from China, Mexico and other countries. However, the company’s large size should make it easier to re-negotiate costs with its suppliers to offset the impact of new U.S. tariffs. Meantime, Walmart’s ongoing investments in its… Read More

Microsoft slows AI spending

MICROSOFT CORP. $374 is a buy for aggressive investors. The world’s largest computer software maker (Nasdaq symbol MSFT; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 7.4 billion; Market cap: $2.8 trillion; Price-to-sales ratio: 10.5; Dividend yield: 0.9%; TSINetwork Rating: Above Average; www.microsoft.com) announced plans to spend… Read More

Archer Daniels lowers its costs

ARCHER DANIELS MIDLAND CO. $48 is a hold. The company (New York symbol ADM; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 480.2 million; Market cap: $23.0 billion; Price-to-sales ratio: 0.3; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.adm.com) processes corn, wheat, soybeans, flax seed and other… Read More

Unique products help ease tariff threats

Both of these makers of medical laboratory equipment get a significant amount of their sales from customers in China. That makes them vulnerable to escalating tariffs. However, both firms have factories in China, which helps offset the tariff impact. Their unique products are also difficult… Read More

GE’s high p/e adds risk

GENERAL ELECTRIC CO. $194 is a hold. The company (New York symbol GE; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 1.1 billion; Market cap: $213.4 billion; Price-to-sales ratio: 5.2; Dividend yield: 0.6%; TSINetwork Rating: Average; www.geaerospace.com) now operates as GE Aerospace. It mainly makes and services jet engines… Read More

RTX can overcome tariffs

RTX CORP. $120 remains a buy. The company (New York symbol RTX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.3 billion; Market cap: $156.0 billion; Price-to-sales ratio: 1.9; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.rtx.com) is a leading maker of aircraft equipment and missiles.
RTX’s revenue… Read More

Here are updates on two of your buys

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:
ELI LILLY & CO., $757.18, is still a.. Read More

Wyndham links up with Carnival

WYNDHAM HOTELS & RESORTS, $83.53, is a buy. The company (New York symbol WH; TSINetwork Rating: Average) (www.wyndhamhotels.com; Shares outstanding: 77.5 million; Market cap: $6.5 billion; Dividend yield: 2.0%) is providing its Wyndham Rewards members a new way to book and save on cruises. Members can… Read More

R&D powers these two U.S. tech leaders

PagerDuty and Twilio were well positioned to gain during the pandemic, but since early 2021 they have dropped along with many other tech/platform stocks. Still, we think both have room to rebound as they continue to experience strong and growing demand. Both are buys.
PAGERDUTY INC.,… Read More

We see limited prospects here

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:
COREWEAVE INC., $40.78, (Nasdaq symbol CRWV; TSI Rating: Extra Risk) (Shares outstanding:… Read More

ResMed debuts a home apnea test

RESMED INC., $213.97, is a buy. The company’s (New York symbol RMD; TSINetwork Rating: Average)(www.resmed.com; Shares outstanding: 146.9 million; Market cap: $31.4 billion; Dividend yield: 1.0%) home sleep apnea test, NightOwl, is now available across the U.S. It’s an FDA-cleared home sleep apnea test designed to offer… Read More

Acquisition lets Alcon better meet rising demand

Alcon taps into long-term key trends—an aging population and greater wealth globally. In addition, technological changes make it hard for new entrants to gain significant market share. This all bodes well for its share price and investor returns.
ALCON, $91.42, is a #1 Power Buy for 2025. The firm (New… Read More

Savvy move for SHOP

SHOPIFY, $117.37, remains a buy. The company (Toronto symbol SHOP; TSINetwork Rating: Extra Risk) (www.shopify.ca; Shares o/s: 1.2 billion; Market cap: $152.0 billion; No divds.) recently transfered its U.S. stock listing from the New York Stock Exchange to the Nasdaq Global Select Market. (Note that it will… Read More

CAE has the better outlook

Both Bombardier and CAE remain vulnerable to changing tariff policies in the U.S. and other countries. Still, we prefer CAE for new buying given its broader geographic operations and higher revenue from services.
BOMBARDIER INC. is a hold. The company (Toronto symbols BBD.A $86 and BBD.B $86; Aggressive… Read More

Cut your tariff risk with service providers

U.S. tariffs apply only to goods, not services. As a result, the share prices of these three service providers from our Aggressive Growth Portfolio have held up better than manufacturing companies.
For your new buying, we prefer Stantec and Colliers, particularly as the current economic turmoil… Read More