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
We continue to see attractive investment opportunities for our subscribers in top drug stocks—and that includes AbbVie Inc. At the same time, over the years, we’ve found that spinoffs are about as close as you can get to a sure thing in investing. It’s one… Read More
CHIPOTLE MEXICAN GRILL, $56.93, is a buy. The company (New York symbol CMG; TSINetwork Rating: Extra Risk) (Shares outstanding: 1.4 billion; Market cap: $78.0 billion; No dividends paid) is now testing for the first time in its restaurants an avocado processing robot.
The robot, which Chipotle calls Autocado, can hold… Read More
You Can See Our Current Power Recommendations For October 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
MAPLE LEAF FOODS INC. $22 (www.mapleleaffoods.com) is a hold. The company plans to spin off its pork processing business as a separate firm in 2025. It raises and processes hogs and accounts for 32% of Maple Leaf’s total sales. The remaining operations (68%) will focus on packaged meats… Read More
COLLIERS INTERNATIONAL GROUP INC. $194 is a buy for aggressive investors. This company (Toronto symbol CIGI; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 48.7 million; Market cap: $9.4 billion; Price-to-sales ratio: 1.6; Dividend yield: 0.2%; TSINetwork Rating: Extra Risk; www.colliers.com) offers a range of real estate… Read More
MATTR CORP. $14 is a buy for aggressive investors. The company (Toronto symbol MATR; Aggressive Growth Portfolio, Manufacturing sector; Shares outstanding: 66.4 million; Market cap: $929.6 million; Price-to-sales ratio: 1.1; Dividend suspended in March 2020; TSINetwork Rating: Average; www.mattr.com) is the new name for ShawCor Ltd. (old symbol… Read More
Engineering company SNC-Lavalin recently changed its name to AtkinsRealis. The change is part of its new strategy, which mainly involves exiting lump-sum, turnkey (LSTK) construction projects. They expose it—and its investors—to cost overruns. The company is also narrowing its work to services such as design… Read More
RESTAURANT BRANDS INTERNATIONAL INC. $94 is a buy for aggressive investors. The fast-food operator (Toronto symbol QSR, Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 447.0 million; Market cap: $42.0 billion; Price-to-sales ratio: 4.1; Dividend yield: 3.2%; TSINetwork Rating: Average; www.rbi.com) has 31,324 outlets in over 100 countries, comprised… Read More
TOROMONT INDUSTRIES LTD. $124 is a buy. The company (Toronto symbol TIH; Aggressive Growth Portfolio; Manufacturing sector; Shares outstanding: 81.9 million; Market cap: $10.2 billion; Price-to-sales ratio: 2.1; Dividend yield: 1.6%; TSINetwork Rating: Extra Risk; www.toromont.com) distributes a broad range of Caterpillar and other branded industrial equipment (such… Read More
ALGONQUIN POWER & UTILITIES, $7.19, is a buy. The utility (Toronto symbol AQN; Shares o/s: 689.7 million; Market cap: $5.5 billion; TSINetwork Rating: Extra Risk; Yield: 5.3%; www.algonquinpower.com) has agreed to sell most of its non-regulated renewable power assets for $2.28 billion. It could receive an additional $220 million… Read More
Both Loblaw and Metro successfully weathered the pandemic. In fact, the shares of both are now trading at all-time highs for our subscribers! Meanwhile, we think both stocks still have gains ahead. Indeed, both remain buys.
LOBLAW COMPANIES, $175.92, is a buy. The retailer (Toronto symbol L; Shares o/s:… Read More
WARNER BROS. DISCOVERY INC. $7.97 is still a hold. The company (Nasdaq symbol WBD; Aggressive Growth Portfolio; Consumer sector; Shares outstanding: 2.4 billion; Market cap: $19.1 billion; Price-to-sales ratio: 0.5; No dividend paid; TSINetwork Rating: Average; www.wbd.com) took its current form in April 2022 when AT&T merged its… Read More
SHERWIN-WILLIAMS CO. $362 is a hold. The paint maker (New York symbol SHW; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 252.3 million; Market cap: $91.3 billion; Price-to-sales ratio: 4.0; Dividend yield: 0.8%; TSINetwork Rating: Above Average; www.sherwin-williams.com) reported 0.5% higher sales in the three months ended June 30,… Read More
These two firms provide vital services that help both businesses and financial service providers operate more efficiently and lower their costs. Both are solid additions to the Finance sector of your portfolio.
BROADRIDGE FINANCIAL SOLUTIONS INC. $212 is a buy. The company (New York symbol BR; Aggressive Growth… Read More
On April 3, 2020, aerospace and military equipment maker RTX Corp. (formerly called Raytheon Technologies) spun off its Otis (elevators) and Carrier (heating and air conditioning equipment) businesses. For each UTX share they held, investors received 0.5 of a share in Otis and 1 share… Read More
You Can See Our Current Power Recommendations For September 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
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:
SHOPIFY, $103.54, remains a buy. The company (Toronto symbol… Read More
EXPEDIA GROUP INC., $133.19, is a Power Buy. The company (Nasdaq symbol EXPE; TSINetwork Rating: Average) (www.expediagroup.com; Shares outstanding: 142.6 million; Market cap: $17.6 billion; No dividends paid) has announced a multiyear agreement with Wells Fargo and Mastercard to launch two new co-branded credit cards to complement One Key, Expedia’s… Read More
ACI Worldwide and Fair Isaac have winning business models, especially in today’s expanding financial markets. We believe that will lead to strong growth in future years. Both are hitting new highs, but we still see them as buys.
ACI WORLDWIDE, $48.08, is a buy. The firm (Nasdaq… Read More
