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.
Shares of Genuine Parts have gained 20% in the past year. The rise is partly because higher interest rates on new loans have prompted consumers to hang on to their older cars; that in turn has lifted Genuine’s sales of replacement parts. What’s more, an… Read More
QUAKER CHEMICAL CORP. $198 is still a buy. The company (New York symbol KWR; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 18.0 million; Market cap: $3.6 billion; Price-to-sales ratio: 1.9; Dividend yield: 0.9%; TSINetwork Rating: Average; www.quakerhoughton.com) acquired rival specialty chemicals maker Houghton International in August 2019… Read More
MOTOROLA SOLUTIONS INC. $284 is a buy. The company (New York symbol MSI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 166.9 million; Market cap: $47.4 billion; Price-to-sales ratio: 5.1; Dividend yield: 1.2%; TSINetwork Rating: Average; www.motorolasolutions.com) makes communications equipment such as two-way radios for police and… Read More
BAXTER INTERNATIONAL INC. $42 is a buy. The company (New York symbol BAX; Conservative Growth Portfolio; Manufacturing sector; Shares outstanding: 505.9 million; Market cap: $21.2 billion; Price-to-sales ratio: 1.6; Dividend yield: 2.7%; TSINetwork Rating: Average; www.baxter.com) has agreed to sell its BioPharma division to private-equity firms Advent International and Warburg… Read More
GENERAL ELECTRIC CO. $101 remains a hold. The conglomerate (New York symbol GE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.1 billion; Market cap: $111.1 billion; Price-to-sales ratio: 1.4; Dividend yield: 0.3%; TSINetwork Rating: Average; www.ge.com) recently spun off its healthcare products business (X-ray equipment, MRI… Read More
APPLE INC. $172 is still a hold. The company (Nasdaq symbol AAPL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 16.2 billion; Market cap: $2.8 trillion; Price-to-sales ratio: 7.0; Dividend yield: 0.6%; TSINetwork Rating: Average; www.apple.com) gets about half of its revenue from iPhone sales. The other… Read More
The overall U.S. inflation rate for the year ended April 2023, was 4.9%. However, the rise in grocery prices was even steeper at 7.1%. That’s because foodmakers have raised their selling prices to offset higher ingredient and other costs.
Those higher selling prices, along with better… Read More
GEN DIGITAL INC. $17 is a buy. The company (Nasdaq symbol GEN; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 639.1 million; Market cap: $10.9 billion; Price-to-sales ratio: 3.2; Dividend yield: 2.9%; TSINetwork Rating: Average; www.gendigital.com) changed its name from NortonLifeLock Inc. (old symbol NLOK) in September 2022 following… Read More
Artificial intelligence (AI) has made huge strides in the past few years. The public launch of online chatbot ChatGPT, which uses artificial intelligence (AI) software to interact with users in a conversational way and produce human-like written responses, highlights that progress.
A great way to tap… Read More
We think the healthcare industry will enjoy great success over the next decade. But due to the nature of the business, results will vary widely and unpredictably from one company to another. A volatile market like the one we expect for healthcare stocks will include… 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:
RESMED INC., $223.97, is a buy. The company… Read More
CHIPOTLE MEXICAN GRILL, $2,062.01, is a buy. The company (New York symbol CMG; TSINetwork Rating: Extra Risk) (www.chipotle.com; Shares outstanding: 27.6 million; Market cap: $43.9 billion; No dividends paid.) has quickly won its lawsuit for trademark infringement against fast-casual restaurant chain Sweetgreen Inc.
Sweetgreen renamed its newest menu item, the… 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, $66.17, is suitable… Read More
You should remain wary of stocks that attract broker/media praise for their 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:
E AUTOMOTIVE INC., $3.32, (Toronto symbol EINC; TSINetwork Rating: Extra Risk) (www.e.inc;… Read More
Broadridge has a winning business model in expanding markets. We believe that will lead to strong growth in future years. The stock is a Power Buy.
BROADRIDGE FINANCIAL SOLUTIONS, $152.74, is a buy. The company (New York symbol BR; TSINetwork Rating: Average) (www.broadridge.com; Shares outstanding: 118.0 million; Market cap:… Read More
ELI LILLY & CO., $437.47, is a #1 Power Buy for 2023. The company (New York symbol LLY; TSINetwork Rating: Above Average) (www.lilly.com; Shares outstanding: 949.3 million; Market cap: $414.5 billion; Dividend yield: 1.3%) rose to new all-time highs recently after its experimental Alzheimer’s drug, donanemab, slowed cognitive decline by… Read More
Swiss pharmaceutical giant Novartis spun off Alcon in 2019. As we’ve said many times before, spinoffs are the closest thing you can find to a sure thing, regardless of the market’s rise and fall.
The stock is already up over 99% from its March 2020 low,… Read More
BOMBARDIER INC. is a hold. The company (Toronto symbols BBD.A $56 and BBD.B $55; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 95.3 million; Market cap: $5.2 billion; Price-to-sales ratio: 0.7; Dividend suspended in February 2015; TSINetwork Rating: Speculative; www.bombardier.com) delivered 22 business jets in the quarter ended March 31,… Read More
TRANSCONTINENTAL INC. $15 is still a buy for aggressive investors. The company (Toronto symbol TCL.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 86.9 million; Market cap: $1.3 billion; Price-to-sales ratio: 0.4; Dividend yield: 6.0%; TSINetwork Rating: Average; www.tctranscontinental.com) is Canada’s leading commercial printer. It also makes plastic packaging.
The… Read More
SNC-LAVALIN GROUP INC. $35 is still a hold. The engineering company’s (Toronto symbol SNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 175.6 million; Market cap: $6.1 billion; Price-to-sales ratio: 0.7; Dividend yield: 0.2%; TSINetwork Rating: Average; www.snclavalin.com) revenue in the first quarter of 2023 rose 7.2%,… Read More