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.
Artificial intelligence (AI) is an example of an investment idea that could boost your investment returns, or, more likely, end up costing you money. All in all, we think that the biggest, surest gains from AI will come from investing in established businesses that are… Read More
CORTEVA INC., $58.95, is a buy. The company (www.corteva.com; New York symbol CTVA; TSINetwork Rating: Extra Risk) (Shares o/s: 692.2 million; Market cap: $40.8 billion; Dividend yield: 1.2%) will now collaborate with Pairwise, a technology company aiming to pioneer the application of gene editing in food and agriculture.
Gene editing… Read More
Stock buybacks reduce the total number of shares outstanding. That boosts earnings per share since profit is then divided among fewer shares. The higher per-share earnings make the stock more attractive to investors and help to increase share prices.
RESTAURANT BRANDS INTERNATIONAL, $72.12, is a buy. The… Read More
REGENERON PHARMACEUTICALS, $1,007.96, is a buy. The company (Nasdaq symbol REGN; TSINetwork Rating: Average) (www.regeneron.com; Shares outstanding: 108.4 million; Market cap: $111.1 billion; No dividends paid) avoids costly acquisitions to spur growth. Ins—tead it spends over $4.8 billion annually—or a very high 34% of sales—on R&D.
That research outlay continues… Read More
During the pandemic, Domino’s Pizza implemented savvy strategies to support its businesses—strategies that are still paying off. The stock took a dip in July 2024 on a slower growth forecast, but going forward, we think the stock is well-positioned to capitalize on its popular offerings… Read More
These two firms, which provide a variety of specialized real estate services, are hitting new all-time highs. That’s partly due to acquisitions that expand their market share and attract new clients. We feel both can move even higher as falling interest rates spur construction and… Read More
The federal government recently stepped in to end a work stoppage by CPKC’s locomotive engineers, conductors, train and yard workers, and rail traffic controllers. The dispute will now go to binding arbitration, which will likely increase CPKC’s operating costs. Even so, we still like the… Read More
Mondelez’s sales have suffered lately as consumers moved to cut their spending in response to elevated inflation and interest rates. However, the company’s top brands are not losing ground to private label products. Its sales volumes should continue to improve as inflation continues to ease… Read More
BECTON DICKINSON & CO. $235 is a buy. The medical device maker (New York symbol BDX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 289.0 million; Market cap: $67.9 billion; Price-to-sales ratio: 3.5; Dividend yield: 1.6%; TSINetwork Rating: Above Average; www.bd.com) recently acquired the Critical Care product… Read More
Aircraft maker Boeing has had to slow production of some of its planes due to a strike by machinists at its main plants. That will probably slow earnings growth at both of these suppliers. Their high p/e’s also add risk.
GENERAL ELECTRIC CO. $189 is a.. Read More
SONY GROUP CORP. ADRs $96 is a hold. The Japanese conglomerate (New York symbol SONY; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.3 billion; Market cap: $124.8 billion; Price-to-sales ratio: 1.3; Dividend yield: 0.6%; TSINetwork Rating: Average; www.sony.com) sold 2.4 million of PlayStation 5 video game… Read More
PAYPAL HOLDINGS INC. $77 is a buy, but only for highly aggressive investors. The company (Nasdaq symbol PYPL; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 1.05 billion; Market cap: $80.9 billion; Price-to-sales ratio: 2.7; No dividends paid; TSINetwork Rating: Above Average; www.paypal.com) processes online transactions on millions of… Read More
MOTOROLA SOLUTIONS INC. $450 is a buy. The company (New York symbol MSI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 166.8 million; Market cap: $75.1 billion; Price-to-sales ratio: 7.4; Dividend yield: 0.9%; TSINetwork Rating: Average; www.motorolasolutions.com) reported that revenue in the second quarter of 2024 rose… Read More
Despite slowing sales of its chips to makers of industrial products and cars, the shares of Texas Instruments have jumped 27% in the past year. In the process, they hit a new all-time high of $215 in August 2024.
The impressive rise is partly due to… Read More
DraftKings and Warner Music soared during the pandemic but have now given up some of those gains. We still like their competitive prospects in their niche markets, and each stock is especially attractive for new buying right now.
DRAFTKINGS INC., $38.07, is a buy. The company (Nasdaq symbol DKNG;… Read More
South Korea’s increasing demand for business and leisure travel in South Korea comes amidst the government’s focus on furthering the tourism sector. In 2023, the country welcomed 11 million inbound visitors—showing a significant recovery post-pandemic.
WYNDHAM HOTELS & RESORTS, $78.84, is a #1 Power Buy for 2024. The… 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:
RESTAURANT BRANDS INTERNATIONAL, $69.25, is a buy. The… Read More
MP MATERIALS, $14.12, is still a buy. The company (New York symbol MP; TSINetwork Rating: Extra Risk) (www.mpmaterials.com; Shares o/s: 165.3 million; Market cap: $2.3 billion; No divids.) has approval for a $300 million increase to its existing share repurchase program, bringing the total authorized amount to $600… Read More
Many traditional bricks-and-mortar retailers continue to struggle against the pandemic-spurred onslaught of online shopping and the impact of past inflation on consumer spending. Still, we believe the unique markets of TJX and North West offer you the possibility of strong gains ahead.
THE TJX COMPANIES, $117.25, (New… Read More
