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.
GE VERNOVA INC. $335 is a hold. The company (New York symbol GEV; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 275.7 million; Market cap: $92.4 billion; Price-to-sales ratio: 2.7; No dividend paid; TSINetwork Rating: Average; www.gevernova.com) makes turbines and related equipment for gas-fired and nuclear power plants, plus… Read More
You Can See Our WSSF Income-Seeking Portfolio For December 2024 Here.
This month, we are updating our WSSF Portfolio for Income-Seeking Investors.
This portfolio is a good starting point for investors who need income. It’s also a starting point for conservative investors, since regular dividends are an… Read More
3M COMPANY $132 (www.3m.com) is a buy. On April 1, 2024, 3M spun off its Health Care business as an independent firm called Solventum Corp. (New York symbol SOLV). Shareholders received one share of Solventum for every four 3M shares they held. 3M still owns 19.9% of Solventum,… Read More
Carrier is a great example of how spinoffs unlock value by providing investors with an easier-to-understand firm focused on one business. Since it became an independent firm in 2020, Carrier, with its core focus on heating and cooling systems has seen its stock soar over… Read More
MOLSON COORS BEVERAGE CO. $61 is a hold. The beer brewer (New York symbol TAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 206.0 million; Market cap: $12.6 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.9%; TSINetwork Rating: Average; www.molsoncoors.com) is paying an undisclosed sum for a majority stake in… Read More
These two technology legends are spending big sums on new plants. These investment will help them tap into the fast-growing demand for artificial intelligence-related products as well as spur their long-term earnings.
MICROSOFT CORP. $423 is a buy for aggressive investors. The world’s largest computer software maker (Nasdaq… Read More
GEN DIGITAL INC. $31 is a buy. The company (Nasdaq symbol GEN; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 639.1 million; Market cap: $19.8 billion; Price-to-sales ratio: 5.1; Dividend yield: 1.6%; TSINetwork Rating: Average; www.gendigital.com) is the parent firm of several computer security-related brands, including Norton, LifeLock, Avast,… Read More
PROCTER & GAMBLE CO. $179 is a buy. The company (New York symbol PG; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 2.4 billion; Market cap: $429.6 billion; Price-to-sales ratio: 5.3; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.pg.com) is the world’s largest maker of household and personal-care goods… Read More
We continue to recommend investors diversify their Finance sector holdings beyond the big banks by holding high-quality non-bank firms such as the three below.
Each is a a leader in its niche industry, which cuts your risk. As well, despite recent share price gains, all three… Read More
AGILENT TECHNOLOGIES INC. $138 is a buy. The company (New York symbol A; Aggressive Growth Portfolio, Manufacturing sector; Shares outstanding: 285.2 million; Market cap: $39.4 billion; Price-to-sales ratio: 6.0; Dividend yield: 0.7%; TSINetwork Rating: Average; www.agilent.com) makes specialized testing equipment for medical research laboratories and industrial clients.
In September… Read More
Legacy tech firm IBM has gained 47% in the past year, mainly due to investor enthusiasm for its artificial intelligence (AI) software. The company has a long history with AI; in fact, in 2011, IBM’s Watson supercomputer beat human contestants on the Jeopardy game show.
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:
GEN DIGITAL INC., $29.44, is a buy. The… Read More
You Can See Our Current Power Recommendations For December 2024 Here.
Understanding our recommendations: Power Buy—These stocks are our top choices for new buying now. We feel each currently offers the best combination of fundamentals (earnings, sales, cash flow and so on) plus external factors (industry trends… Read More
The pandemic presented both of these firms with unique challenges. However, each remained profitable and is well positioned to keep prospering as the economy continues to rebound. Trends now underway—as well as the strong position of these firms in key markets—will power their gains. Both… Read More
Eli Lilly’s shares fell recently after the company reported its latest results—and that included slowing sales of its anti-obesity drug Zepbound and related diabetes drug Mounjaro. Still, overall sales and profits for Lilly were up strongly.
ELI LILLY & CO., $753.41, is still a buy. The… Read More
Garmin is a leader in GPS devices and software for a range of markets. ADT keeps signing up new security customers at the same time it retains more and more of its existing ones. The company’s expanded services help drive that growth. We think both… 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:
CANADA GOOSE HOLDINGS, $13.03, (Toronto symbol GOOS; TSINetwork Rating: Extra Risk) (www.canadagoose.com;… Read 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
CHIPOTLE MEXICAN GRILL, $58.88, is a buy. The company (New York symbol CMG; TSINetwork Rating: Extra Risk) (Shares outstanding: 1.4 billion; Market cap: $80.2 billion; No dividends paid) recently lost CEO Brian Niccol to Starbucks, where he has taken over as its CEO.
Meanwhile, Chipotle has just announced its new… Read More
During the pandemic, Texas Roadhouse implemented savvy strategies to support its businesses. Now, as the economy has normalized, we think it’s very well-positioned to capitalize on its popular offerings to keep attracting dine-in, pick-up and takeout customers. We recommend this stock as a Power Buy.
TEXAS ROADHOUSE, $193.41,… Read More
